R & T PROPERTY SOLUTIONS LTD

Executive Summary

R & T PROPERTY SOLUTIONS LTD exhibits significant financial stress characterized by negative working capital and near-zero net equity, signaling liquidity challenges and fragile financial health. While fixed assets provide some stability, urgent action to improve cash flow and strengthen capital is critical to avoid worsening distress. Immediate focus on liquidity management and potential capital injection is advised to restore financial wellness.

R & T PROPERTY SOLUTIONS LTD - Analysis Report

Company Number: 13880098

Analysis Date: 2025-07-20 12:41 UTC

Financial Health Assessment: R & T PROPERTY SOLUTIONS LTD

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1. Financial Health Score: D

Explanation:
The company shows clear symptoms of financial distress, with a precariously low net asset base and negative net current assets indicating liquidity challenges. While it is still active and operational as a micro-entity, the balance sheet signals that the business is struggling to maintain healthy working capital and overall financial stability.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	103,933	Stable asset base, likely property-related given SIC codes; a positive anchor for the business.
Current Assets	1,056	Extremely low liquid or short-term assets, indicating limited cash or receivables on hand.
Current Liabilities	104,387	High short-term obligations almost equal to fixed assets, creating liquidity risk.
Net Current Assets (Working Capital)	-103,331	Negative by a wide margin, indicating an inability to cover short-term debts with current assets.
Total Assets Less Current Liabilities	602	Marginal positive net assets after deducting current liabilities; very thin equity buffer.
Net Assets (Shareholders’ Funds)	187	Very low equity indicating minimal retained earnings or capital; a sign of financial fragility.
Employees	1	Very small workforce consistent with micro-entity status; limited operational scale.

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3. Diagnosis: Financial Symptoms and Underlying Health

• Liquidity Strain: The company’s current liabilities vastly exceed its current assets, a classic symptom of poor liquidity or working capital distress. This means the business may struggle to meet its short-term obligations as they fall due, risking payment delays or defaults.

• Thin Capital Base: The net asset value and shareholders’ funds are barely positive (£187 in 2024), showing the company operates with very little financial cushion. The provision for liabilities introduced in 2024 further erodes net assets, indicating anticipated future expenses or losses.

• Stable Fixed Assets, But Limited Flexibility: Fixed assets remain stable at £103,933, indicating ownership of significant long-term assets (likely property given the SIC classification). However, these are illiquid and cannot easily be converted to cash to cover short-term liabilities.

• Operational Scale: With just one employee (likely one of the directors), the company operates on a minimal scale, which may limit revenue generation and operational flexibility.

• Ownership and Control: Two directors/PSC holders each control 25-50% of shares and voting power, implying concentrated control which can be beneficial for decision-making but also increases risk if strategic missteps occur.

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4. Recommendations: Steps to Improve Financial Wellness

• Improve Liquidity Management: The company must urgently address its negative working capital. This can include negotiating longer payment terms with creditors, accelerating receivables collection if applicable, or injecting short-term finance to cover obligations.

• Capital Injection: Consider additional equity funding or shareholder loans from directors or investors to strengthen the net asset base and provide a financial buffer.

• Asset Utilisation Review: Evaluate the fixed assets for potential monetisation (sale or refinancing) to free up cash, or ensure these assets are generating adequate rental or operating income aligned with the company’s real estate activities.

• Cost Control and Operational Efficiency: With a minimal workforce, ensure overheads are tightly controlled and operational processes are efficient to conserve cash.

• Financial Monitoring: Implement regular cash flow forecasting and financial reviews to detect symptoms of distress early and respond proactively.

• Professional Advisory: Engage with financial advisors or insolvency practitioners early if liquidity issues worsen to explore restructuring or formal rescue options before crisis point.

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