RC - 53A LEVERSON LTD

Executive Summary

RC - 53A LEVERSON LTD is currently experiencing financial distress, highlighted by negative net assets and working capital deficits, signaling liquidity and solvency challenges. Immediate focus is needed on liquidity management and capital restructuring to restore financial health and ensure ongoing viability in the property investment sector.

RC - 53A LEVERSON LTD - Analysis Report

Company Number: 13968279

Analysis Date: 2025-07-20 18:48 UTC

Financial Health Assessment for RC - 53A LEVERSON LTD

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1. Financial Health Score: D

Explanation:
The company shows clear signs of financial distress, with negative net assets and net current liabilities. This grade reflects significant concerns about solvency and capital structure, indicating a need for urgent financial restructuring or strategic review.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	468,173	Healthy level of short-term resources
Current Liabilities	476,477	Slightly exceeds current assets, indicating liquidity stress
Net Current Assets (Working Capital)	-8,304	Negative working capital — a symptom of cash flow strain
Long-Term Creditors	64,000	Debt obligations extending beyond one year
Net Assets (Shareholders' Funds)	-72,904	Negative equity, indicating the company owes more than it owns
Average Employees	0	No employees, suggesting a non-operational or asset-holding entity

Interpretation:

• The negative net current assets show the company does not have enough liquid assets to cover its short-term debts, a classic symptom of liquidity distress.
• Negative shareholders' funds (net assets) highlight that accumulated losses or liabilities exceed the total assets, pointing to solvency risk.
• The presence of long-term creditors increases the financial burden.
• The company has no employees, possibly implying limited active operations, which may be typical for a property-holding or investment entity but limits revenue generation.

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3. Diagnosis

RC - 53A LEVERSON LTD is exhibiting symptoms akin to a patient with financial "illness" characterized by liquidity strain and insolvency risk:

• Liquidity Symptoms: Negative working capital suggests that the company could struggle to meet its short-term obligations without raising additional cash or refinancing. This is akin to a patient whose vital signs indicate dehydration or poor circulation — a warning sign requiring immediate intervention.

• Solvency Symptoms: Negative net assets reflect that the company’s total liabilities exceed its total assets. This can be compared to a patient with organ failure: the company’s financial foundation is weakened, limiting its ability to sustain operations or attract investment.

• Operational Status: With no employees and a focus on real estate (letting and buying/selling own real estate), the company may rely heavily on asset performance and market conditions. However, current financials suggest the company is under significant stress, possibly due to market downturns, over-leverage, or operational inefficiencies.

• Name Changes: The company has undergone two name changes within a short time, which may indicate restructuring or strategic repositioning attempts, though these have not yet translated into financial recovery.

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4. Recommendations

To improve the financial wellness of RC - 53A LEVERSON LTD, consider the following actions akin to a treatment plan to restore financial health:

1. Liquidity Management:

   • Secure short-term financing or inject capital to cover current liabilities.
   • Tighten cash flow management to ensure all incoming funds are collected promptly.
   • Review and renegotiate payment terms with creditors to ease immediate cash pressures.

2. Capital Restructuring:

   • Engage with shareholders or potential investors for capital infusion to restore positive equity.
   • Explore debt restructuring options with long-term creditors to reduce interest burden or extend maturities.

3. Operational Review:

   • Assess the real estate portfolio for underperforming assets that can be sold to improve liquidity.
   • Evaluate the business model for sustainability and consider strategic pivots if necessary.

4. Governance and Reporting:

   • Maintain timely and transparent financial reporting to build stakeholder confidence.
   • Consider professional financial advisory support to diagnose deeper causes and design turnaround strategies.

5. Future Planning:

   • Develop a detailed cash flow forecast and stress test scenarios to anticipate potential liquidity gaps.
   • Build reserves once financial stability improves to weather future market fluctuations.

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