RESTORATION STAYCATIONS LTD

Executive Summary

Restoration Staycations Ltd demonstrates improving financial health with solid net asset growth and strong working capital for a micro-entity. The company appears capable of meeting its short-term obligations and sustaining operations in the real estate management sector. Monitoring liquidity and market conditions is advised to mitigate sector-specific risks.

RESTORATION STAYCATIONS LTD - Analysis Report

Company Number: 13574497

Analysis Date: 2025-07-29 14:36 UTC

1. Credit Opinion: APPROVE with monitoring. Restoration Staycations Ltd shows a stable and improving financial position with no indications of liquidity stress or over-leverage. The company’s net assets have more than tripled over three years, reflecting retained earnings or capital injections, supporting its ability to meet debt obligations. However, as a micro-entity with a sole employee and limited fixed assets, its business model may be sensitive to market fluctuations in real estate management. Continued vigilance on cash flow and receivables is recommended.

2. Financial Strength: The balance sheet is modest but strengthening. Fixed assets are minimal (£1,660), consistent with a service-oriented business. Current assets have increased significantly from £8,393 (2023) to £21,947 (2024), while current liabilities rose proportionally but remain covered comfortably, yielding a strong net current asset position (£14,722). Shareholders’ funds increased from £5,080 to £16,382, indicating enhanced capitalization or accumulated profits. The company remains within the micro-entity size category, limiting financial disclosure but showing positive net asset growth.

3. Cash Flow Assessment: Liquidity appears sufficient given the net current assets position and growth in current assets. The company’s ability to maintain positive working capital signals good short-term financial health and capacity to cover immediate liabilities. With only one employee, operating expenses are likely low, aiding cash flow management. However, detailed cash flow statements are not provided, so monitoring actual cash inflows and outflows would be prudent, especially given the real estate management sector’s cyclical nature.

4. Monitoring Points:

• Continued growth in net current assets and net assets to ensure ongoing financial resilience.
• Maintenance of receivables and cash balances relative to short-term liabilities to avoid liquidity crunches.
• Impact of any market downturns on real estate management fees or contract renewals.
• Any changes in staffing or operational scale that might affect cost structure and cash burn rate.
• Timely filing of accounts and confirmation statements to avoid compliance risk.