REZDAR PROPERTY MANAGEMENT LTD

Executive Summary

REZDAR PROPERTY MANAGEMENT LTD shows signs of financial distress with negative net assets and insufficient liquidity to cover short-term debts. Immediate action to improve working capital and secure additional funding is critical. With prudent financial management, the company can stabilize and improve its financial health over time.

REZDAR PROPERTY MANAGEMENT LTD - Analysis Report

Company Number: 15127339

Analysis Date: 2025-07-20 12:33 UTC

Financial Health Assessment: REZDAR PROPERTY MANAGEMENT LTD

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1. Financial Health Score: Grade D

Explanation:
The company is showing clear symptoms of financial distress with negative net assets and net current liabilities exceeding current assets by a significant margin. The financial position indicates undercapitalization and potential liquidity concerns typical of a business struggling to meet short-term obligations. Given the company’s very recent incorporation (2023) and micro-entity status, this may partly reflect early-stage investment and startup costs, but the negative equity and working capital deficit are concerning signs.

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2. Key Vital Signs (Core Financial Metrics)

Metric	Value (£)	Interpretation
Current Assets	189	Extremely low liquid resources, minimal working capital
Current Liabilities	9,000	Short-term obligations significantly outweigh liquid assets
Net Current Assets	-8,811	Negative working capital, indicating liquidity stress
Net Assets (Equity)	-8,811	Negative equity, company owes more than it owns
Shareholders’ Funds	-8,811	Reflects accumulated losses or undercapitalization
Number of Employees	1	Very small operation, typical for a micro-entity

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3. Diagnosis: Financial Condition Overview

The company’s financial "vital signs" reveal symptoms akin to a patient with low blood pressure and signs of dehydration—its liquidity is insufficient to cover immediate liabilities. Negative net current assets (working capital) means the company does not have enough short-term resources to pay its short-term debts, raising a red flag on its operational cash flow health.

The negative shareholders’ funds suggest that the company’s liabilities exceed its assets, which can reflect early losses or initial setup costs financed by debt or director loans rather than equity capital. This condition, if persistent, may impair the company’s ability to secure financing or trade credit and can lead to solvency issues.

Being a micro-entity and newly incorporated, these figures might partially reflect the start-up phase where investments and expenses precede revenue. However, without a clear plan to improve liquidity and equity, the company risks financial distress.

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4. Recommendations: Improving Financial Wellness

• Increase Working Capital: Inject additional equity or secure short-term financing to cover current liabilities and restore positive working capital. This will improve liquidity and operational flexibility.
• Cash Flow Management: Closely monitor cash inflows and outflows to avoid liquidity shortages. Implement strict credit control and negotiate payment terms with suppliers.
• Cost Control: Evaluate and reduce unnecessary costs to minimize cash burn during the early stage of the business.
• Financial Planning: Develop a detailed budget and cash flow forecast to anticipate funding needs and avoid surprises.
• Equity Injection: Consider further capital contributions from shareholders to offset negative net assets and provide a financial cushion.
• Seek Professional Advice: Engage with financial advisors or accountants to establish robust financial controls and explore funding options.

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Executive Summary

Rezdar Property Management Ltd is experiencing early-stage financial strain, marked by negative working capital and net liabilities exceeding assets. The company must urgently improve liquidity and capital structure to avoid cash flow crises. With strategic financial management and capital support, it can stabilize its financial health and build a sustainable foundation for growth.