RAYBELL PROPERTIES LIMITED

Executive Summary

RAYBELL PROPERTIES LIMITED exhibits a stable but cautious financial condition with positive equity growth but negative working capital indicating liquidity challenges. Focused efforts to improve cash flow and manage short-term liabilities will be critical to strengthen financial resilience. The company’s small scale and steady asset base provide a solid foundation for measured growth.

RAYBELL PROPERTIES LIMITED - Analysis Report

Company Number: 12756964

Analysis Date: 2025-07-29 17:43 UTC

Financial Health Assessment: RAYBELL PROPERTIES LIMITED (As of 31 May 2024)

---

1. Financial Health Score: C

Explanation:
The company demonstrates moderate financial stability but with signs of working capital stress ("symptoms of distress") due to negative net current assets. The equity base is positive and growing, which is a healthy sign, but liquidity constraints and relatively small asset base limit the score.

---

2. Key Vital Signs

Metric	Value (2024)	Interpretation
Fixed Assets	£42,415	Stable asset base, indicates investment in long-term assets.
Current Assets	£17,259	Short-term resources available, increased from previous year (good sign).
Current Liabilities	£31,925	Short-term debts due, slightly decreased from prior year, showing some liability management.
Net Current Assets (Working Capital)	-£14,564	Negative working capital signals liquidity pressure; company may struggle to meet short-term obligations without additional cash inflow.
Shareholders’ Funds (Equity)	£27,851	Positive and increasing equity base; indicates retained earnings and capital injections exceeding liabilities over time.
Number of Employees	3	Small team, consistent with micro-entity status.
Account Category	Micro	Small scale with simplified reporting; limited complexity.
Industry	Construction of domestic buildings	A sector often subject to cash flow variability and cyclical demand.

---

3. Diagnosis: What the Financial Data Reveals

• Liquidity Concerns:
  The company shows a "symptom of distress" in the form of negative net current assets, meaning current liabilities exceed current assets by £14,564. This indicates potential short-term liquidity challenges. The company may face difficulty in covering its immediate debts with available liquid assets, which is a critical concern in the "pulse check" of financial health.

• Stable Asset Base:
  Fixed assets have remained consistent over recent years (£42,415), suggesting no recent major investments or disposals. This stability can be positive if assets are productive but may also indicate limited growth or reinvestment.

• Improving Equity Position:
  Shareholders’ funds have increased from £20,659 in 2023 to £27,851 in 2024, reflecting accumulated profits or capital contributions. This "healthy heartbeat" of equity growth signals the business is building value over time.

• Small Scale and Simplified Reporting:
  As a micro-entity with only 3 employees, the company operates on a small scale, which can limit operational complexity but also restrict economies of scale and financial flexibility.

• Industry Risk:
  Operating in construction of domestic buildings exposes the company to market demand fluctuations and payment cycle delays, which may exacerbate liquidity risks.

---

4. Recommendations: Specific Actions to Improve Financial Wellness

1. Improve Liquidity Management:

   • Aim to increase current assets, particularly cash or receivables collection efficiency, to move net current assets into positive territory.
   • Negotiate longer payment terms with suppliers or seek short-term credit facilities to ease working capital pressure.

2. Strengthen Cash Flow Monitoring:

   • Implement rigorous cash flow forecasting to anticipate liquidity gaps and take proactive measures.
   • Consider accelerating billing cycles or securing upfront payments where possible.

3. Explore Growth Opportunities:

   • Evaluate potential for asset utilization improvements or strategic investments to drive revenue growth without compromising liquidity.

4. Maintain Controlled Cost Structure:

   • Keep operating expenses aligned with revenue to preserve margins, especially important given the micro-entity scale.

5. Regular Financial Reviews:

   • Conduct quarterly financial health checks to monitor key metrics and adjust strategy accordingly.

---

Medical Analogy Summary

RAYBELL PROPERTIES LIMITED shows a "steady heartbeat" in terms of equity growth but exhibits "symptoms of distress" with negative working capital, akin to a patient with a stable but borderline vital sign reading. Without intervention to improve liquidity, the "patient" risks short-term financial strain, potentially hampering operational stability.

---