PROPERTY ALERT LIMITED

Executive Summary

PROPERTY ALERT LIMITED currently holds a fragile financial position with negative working capital and minimal equity, indicating liquidity challenges despite a reasonable asset base. The company is compliant and operational but must prioritize improving cash flow and strengthening its capital structure to enhance financial resilience and long-term viability.

PROPERTY ALERT LIMITED - Analysis Report

Company Number: 13209208

Analysis Date: 2025-07-29 14:46 UTC

Financial Health Assessment of PROPERTY ALERT LIMITED

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1. Financial Health Score: C

Explanation:
The company shows signs of being operational with positive net assets, but there are worrying symptoms in its working capital and liquidity position that require close attention. The financial health is currently stable but fragile, warranting caution and remedial action to strengthen resilience.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	86,084	Indicates investment in long-term resources, which is a positive asset base.
Current Assets	1,010	Very low current assets, indicating limited liquid resources.
Current Liabilities	64,775	High short-term obligations relative to current assets—potential liquidity stress.
Net Current Assets (Working Capital)	(20,050)	Negative working capital signals potential difficulty in meeting short-term liabilities.
Total Assets Less Current Liabilities	66,034	Reflects asset base after covering short-term debts, positive but reliant on long-term creditor support.
Creditors > 1 Year	64,775	Significant long-term liabilities, indicating reliance on extended credit or loans.
Net Assets / Shareholders' Funds	909	Very low equity buffer, indicating limited retained earnings and possibly minimal profitability.
Share Capital	1,000	Nominal capital invested, typical for micro-entity status.
Average Number of Employees	0	No employees, possibly indicating limited operational activity or outsourced functions.

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3. Diagnosis: What the Financial Data Reveals

• Liquidity Symptoms: The company displays "symptoms of distress" in its liquidity profile. Negative net current assets (-£20,050) mean it does not have enough liquid assets to cover short-term debts. This "cash flow health" concern suggests potential difficulty in meeting immediate obligations without refinancing or asset sales.

• Leverage and Capital Structure: There is a high level of creditors due after more than one year (£64,775), nearly matching the fixed assets value (£86,084). This implies the company is heavily reliant on long-term debt to finance its asset base. The equity base is minimal (£909), indicating a weak capital buffer to absorb losses or shocks.

• Operational Scale and Profitability: The absence of employees and minimal current assets suggest a very small or nascent operation, common in micro-entities. The company has not reported profits retained in reserves, as shareholders' funds are close to share capital. This may indicate limited or no operational profitability to date.

• Asset Composition: The fixed assets dominate the balance sheet, which may be property or equipment linked to its real estate activities (SIC codes 68100 and 68209). However, the low liquidity and high debts pose risk if these assets are not easily convertible to cash.

• Compliance and Governance: The company is current with filings and returns, indicating good compliance "vital signs." The sole director and person of significant control (Mr Sadiq Ahadi) holds full control, which simplifies decision-making but concentrates risk.

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4. Recommendations: Actions to Improve Financial Wellness

1. Improve Liquidity:

   • Seek to increase current assets, especially cash or receivables, to restore positive working capital.
   • Negotiate extended payment terms with short-term creditors or restructure debt to reduce pressure on immediate cash flow.

2. Strengthen Equity Base:

   • Consider additional capital injection from the owner or new investors to bolster shareholders’ funds and reduce reliance on debt.
   • Retain profits within the business to build reserves once operational profitability improves.

3. Operational Review:

   • Evaluate operational efficiency given zero employees and assess if outsourcing or automation is cost-effective.
   • Explore revenue streams or asset utilisation strategies to generate steady cash inflows.

4. Debt Management:

   • Review terms of long-term creditors (£64,775) to ensure sustainable repayment schedules and avoid default risk.
   • Assess possibility of refinancing high-cost debt with more favourable terms.

5. Financial Monitoring:

   • Implement regular cash flow forecasting and financial reviews to detect early signs of distress and act proactively.
   • Maintain timely compliance with filing deadlines to avoid penalties and preserve corporate reputation.

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Medical Analogy Summary

PROPERTY ALERT LIMITED resembles a patient with a solid skeleton (fixed assets) but poor circulation (negative working capital), putting it at risk of short-term "breathing difficulties" (liquidity crunch). The "immune system" (equity) is weak, so the company must focus on boosting cash flow and capital reserves to avoid financial "infection" (insolvency risk). Prompt intervention with liquidity improvement and debt management can restore the company to a healthier state.

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