Company Number: 12521514

Analysis Date: 2025-07-19 12:40 UTC

Financial Health Assessment for REIGATE HOMES LIMITED (as at 31 March 2024)

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1. Financial Health Score: C

Explanation: The company demonstrates moderate financial health. While it maintains positive net assets and working capital, there are signs of some financial strain including a notable reduction in cash reserves and net assets compared to previous years. This suggests symptoms of liquidity tightening and decreased retained earnings, which require monitoring and management to avoid further deterioration.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Cash at Bank	£45,463	Adequate cash reserves but declined from £53,220 in 2023, indicating tighter liquidity.
Current Liabilities	£37,578	Increased from £28,206 in 2023, raising short-term debt burden and pressure on cash flow.
Net Current Assets (Working Capital)	£7,885	Positive but sharply decreased from £25,014 last year, indicating reduced buffer to cover short-term debts.
Net Assets (Equity)	£19,294	Declined from £31,614 in 2023, signaling erosion in the company’s net worth and retained earnings.
Share Capital	£120	Minimal capital base, typical for small private companies.
Tangible Fixed Assets (Net Book Value)	£11,409	Modest investment in long-term assets, showing some asset base.
Average Number of Employees	0	No employees reported, suggesting reliance on contractors, directors or external resources.

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3. Diagnosis

Symptoms Analysis:

• The company exhibits symptoms of financial tightening, with a reduction in cash and net current assets indicating less "healthy cash flow" for day-to-day operations.
• The increase in current liabilities, especially trade creditors (£12,763) and amounts owed to related parties (£26,816), suggests growing short-term obligations that could stress liquidity.
• The drop in net assets and shareholders' funds signals that retained earnings have been consumed, possibly by operational losses or asset write-downs.
• The absence of employees implies a lean operational model but could also mean limited capacity for growth or internal control.
• The company's turnover and profitability details are not disclosed here, but the decline in equity and working capital may be indicative of underlying operational challenges or investment cycles.

Overall Condition:

REIGATE HOMES LIMITED remains solvent with positive equity and working capital but is showing early symptoms of financial distress. The company may be experiencing cash flow pressures or increased short-term debt reliance, which if not managed, could worsen liquidity and solvency.

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4. Recommendations

• Improve Cash Flow Management:

  • Accelerate debtor collections and negotiate extended payment terms with creditors to ease cash flow strain.
  • Consider short-term financing options cautiously to avoid liquidity crunches.

• Strengthen Equity Base:

  • Inject additional capital if possible to bolster net assets and provide a stronger financial cushion.
  • Review profitability drivers and cost structures to rebuild retained earnings.

• Monitor and Manage Current Liabilities:

  • Closely track creditor payments and related party balances to avoid overdue payments or strained supplier relationships.

• Operational Review:

  • Evaluate business model and contracts for profitability.
  • Consider formal budgeting and forecasting to anticipate cash needs and identify financial risks early.

• Governance and Control:

  • Ensure directors actively monitor financial health and compliance.
  • Since average employees are zero, assess whether additional staff or outsourced expertise could improve operational efficiency and controls.

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Medical Analogy Summary

REIGATE HOMES LIMITED’s financial "vital signs" reveal a company with a stable but weakened pulse—positive net assets but shrinking working capital and cash reserves are symptoms akin to mild dehydration and fatigue in a patient. Without intervention, these symptoms could develop into more serious "financial ailments" such as liquidity crisis or solvency issues. Early diagnosis and proactive treatment are essential to restore the company to robust financial health.

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