Company Number: NI686298

Analysis Date: 2025-07-20 15:08 UTC

Financial Health Assessment for QUEENS QUARTER LIMITED (NI686298)

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1. Financial Health Score: C

• Explanation: The company demonstrates a solid asset base through its fixed assets but struggles with working capital and liquidity, as evidenced by persistent negative net current assets. The equity base is positive and growing, but substantial short-term and long-term liabilities indicate financial strain. This results in a middling grade reflecting a company with underlying challenges but potential for improvement.

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2. Key Vital Signs

Metric	Latest Value (2024)	Interpretation
Fixed Assets	£586,900	Strong long-term asset base; likely property or similar asset.
Current Assets	£3,775	Very low liquid assets; poor short-term asset availability.
Current Liabilities	£189,023	High short-term obligations; potential cash flow pressure.
Net Current Assets (Working Capital)	-£185,248	Deficit indicates inability to cover short-term debts with current assets; symptom of liquidity distress.
Long-term Liabilities	£340,727	Significant debt due beyond one year, increasing financial risk.
Net Assets (Equity)	£60,925	Positive equity indicates residual value after liabilities.
Share Capital	£50	Nominal capital; most financing likely from debt or retained earnings.
Average Number of Employees	0	No active workforce; possibly asset-holding or investment entity.

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3. Diagnosis: What the Numbers Reveal About Business Health

• Asset Structure: The company holds substantial fixed assets (£586,900) that remain stable over three years, indicative of property or real estate holdings consistent with SIC codes related to real estate agencies and operations.

• Liquidity and Working Capital: The company shows a persistent and significant negative working capital position (net current assets of -£185,248 in 2024), meaning it lacks sufficient liquid assets to meet short-term liabilities. This "symptom of distress" suggests potential cash flow problems, which may impact operational flexibility and creditor confidence.

• Liability Profile: Current liabilities have decreased slightly since 2023 but remain high relative to current assets. Long-term liabilities, also sizable (£340,727), suggest the company is leveraged with debt financing likely secured against its fixed assets. The gradual decrease in long-term liabilities, from £360,142 in 2023 to £340,727 in 2024, indicates some repayment or restructuring.

• Equity and Financial Stability: Net assets have increased from £48,004 in 2023 to £60,925 in 2024, reflecting retained earnings or revaluation surpluses. Positive equity is a "healthy pulse" signaling solvency and shareholder value, but the low level relative to liabilities hints at financial fragility.

• Operational Activity: The absence of employees and the nature of the SIC codes imply the company is primarily an asset-holding or real estate investment entity rather than an active trading business, which can explain the low current assets and reliance on financing.

• Governance and Control: Ownership is concentrated with Mr. Douglas Norman Gibson holding 75-100% control and voting rights, with Mr. Gareth James Gibson holding significant influence. This can facilitate agile decision-making but may also limit external governance checks.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Liquidity: The company should focus on increasing current assets, especially cash or equivalents, to reduce working capital deficits. This could involve renegotiating payment terms with creditors, accelerating receivables, or injecting additional cash reserves.

• Debt Management: Review and possibly restructure both current and long-term liabilities to ease short-term financial pressure. Consider refinancing options to extend repayment periods or reduce interest costs.

• Asset Utilization: Assess the fixed assets for opportunities to generate income or capital, such as leasing unused property, selling non-core assets, or improving asset management efficiency.

• Financial Planning: Implement robust cash flow forecasting and budgeting to anticipate liquidity needs and avoid surprises.

• Governance and Transparency: Although ownership is concentrated, consider periodic independent financial reviews or advisory input to strengthen oversight and identify risks early.

• Operational Strategy: If the company intends to remain an asset-holding entity, ensure that operational costs are minimized and that asset income is optimized. If growth or diversification is planned, evaluate the investment needs and potential funding sources carefully.

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