PROPERTYSHIRE LTD

Executive Summary

PROPERTYSHIRE LTD is a newly formed property investment company with significant fixed assets but very low equity and high long-term liabilities. While liquidity shows no immediate distress, the company’s highly leveraged position requires careful financial management and strengthening of its equity base to ensure sustainable growth and financial health. Timely monitoring and strategic planning will be crucial to improving its financial resilience.

PROPERTYSHIRE LTD - Analysis Report

Company Number: 15202591

Analysis Date: 2025-07-29 20:24 UTC

Financial Health Assessment for PROPERTYSHIRE LTD

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1. Financial Health Score: C

Explanation:
PROPERTYSHIRE LTD shows foundational business activity with ownership of fixed assets and positive net current assets. However, the extremely low net asset value (£106) relative to the high level of long-term liabilities (£425,000) indicates a fragile equity base, suggesting early-stage financial vulnerability. The company is operational and compliant with filings, but the balance sheet reveals financial tension that requires close management to avoid distress.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	397,640	Significant investment in long-term assets, likely property holdings per SIC codes. Healthy sign.
Current Assets	27,850	Limited liquid assets (cash, receivables), indicating modest working capital resources.
Current Liabilities	384	Very low short-term liabilities, suggesting no immediate liquidity pressure.
Net Current Assets	27,466	Positive working capital ("healthy cash flow buffer"), enabling day-to-day operations.
Creditors (Due after 1 year)	425,000	Large long-term debt or obligations; significant burden on future cash flows.
Net Assets	106	Extremely low equity, indicating minimal cushion against liabilities and potential financial distress.
Shareholders Funds	106	Equity capital invested by owner is minimal; business is highly leveraged.
Number of Employees	1	Micro entity with minimal staff, typical for newly incorporated property investment company.
Filing Status	Up to date	No overdue accounts or confirmation statements, indicating compliance and good governance.

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3. Diagnosis

PROPERTYSHIRE LTD appears to be a recently incorporated micro-entity focused on property investment and letting, as reflected by the SIC codes and significant fixed assets. The presence of £397,640 in fixed assets suggests ownership or leasing of real estate, which aligns with the company’s business model.

The “symptoms of distress” lie in the financial structure: the company carries long-term liabilities (£425,000) that almost equal the total fixed assets, leaving negligible net assets and shareholder equity (£106). This indicates a highly leveraged position with minimal equity buffer, which could be risky if asset values decline or income streams falter.

The positive net current assets and very low short-term liabilities are reassuring signs of healthy liquidity management at this early stage, suggesting the company can meet short-term obligations without difficulty.

Given the company’s new incorporation in October 2023 and first accounts filed for a 13-month period, the low equity base is typical for startup phases where initial investment is primarily debt-financed. However, the financial “pulse” must be monitored closely to ensure that cash flows from property letting and sales are sufficient to service debt and build equity.

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4. Recommendations

• Strengthen Equity Base: Consider injecting additional equity capital or converting debt to equity to improve net asset position and reduce financial risk.
• Manage Long-term Debt: Negotiate favorable terms or repayment schedules for the £425,000 long-term creditors to avoid liquidity strain.
• Increase Cash Reserves: Boost current assets to create a more robust liquidity buffer, supporting working capital needs and unexpected expenses.
• Monitor Property Market: Regularly assess the value and income potential of fixed assets to anticipate any impairment risks or opportunities.
• Plan for Growth: Develop a clear strategic plan to increase revenue streams, reduce reliance on debt, and improve profitability.
• Maintain Compliance: Continue timely filing of accounts and returns to avoid penalties and maintain creditor and investor confidence.

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