S3M PROPERTY SERVICES LIMITED

Executive Summary

S3M PROPERTY SERVICES LIMITED currently shows financial distress characterized by negative net assets and poor liquidity, with current liabilities far exceeding current assets. Lack of operational activity and negative working capital raise concerns about its ability to meet short-term obligations. Credit approval is not recommended without substantial evidence of improved financial stability or ongoing capital support.

S3M PROPERTY SERVICES LIMITED - Analysis Report

Company Number: 13971912

Analysis Date: 2025-07-29 18:01 UTC

1. Credit Opinion: DECLINE
   S3M PROPERTY SERVICES LIMITED exhibits significant financial weakness as of the latest accounts dated 31 March 2024. The company reports net liabilities of £6,667 and a substantial negative working capital position (net current assets of -£66,867). The negative equity and current liabilities exceeding current assets by a wide margin signal poor liquidity and potential difficulty in meeting short-term obligations. Given the company’s micro-entity status and lack of operating employees, there is limited evidence of ongoing trading activity or cash flow generation to service debt. The financial trajectory from inception to current year shows a sudden jump in liabilities without corresponding asset growth sufficient to cover them, suggesting financial stress. Without clear evidence of improving cash flow or capital injection, the risk of default is high.

2. Financial Strength:
   The balance sheet is weak with fixed assets reported at £218,000, but current liabilities of £157,800 greatly exceed current assets of £35,241. This results in a negative net current asset position, indicating insufficient short-term liquidity. Furthermore, creditors falling due after one year total £157,800, which further strains the company’s solvency. The net asset position is negative (£-6,667), showing that total liabilities surpass total assets. Shareholders’ funds are negative, reflecting accumulated losses or capital erosion. The absence of any reported employees or turnover in the accounts suggests limited operational activity and possible reliance on external funding or shareholder support.

3. Cash Flow Assessment:
   Liquidity is a key concern due to the negative working capital. Current liabilities more than quadruple current assets, which may impair the company’s ability to settle debts as they fall due. The absence of any reported profit and loss figures or turnover data limits detailed cash flow analysis, but the negative net assets and high current liabilities indicate cash flow deficits. There is no indication of positive cash generation from operations, and no employees imply minimal operating expenses but also minimal revenue generation. The company likely depends on further capital injections or refinancing to remain solvent in the short term.

4. Monitoring Points:

• Monitor forthcoming annual accounts and confirmation statements for evidence of improved liquidity or capital restructuring.
• Watch closely for any increases in current liabilities or further deterioration in net assets.
• Track any disclosures regarding new financing or shareholder loans that might improve solvency.
• Review director and related party transactions for any potential financial support or conflicts of interest.
• Assess any operational developments that could generate cash flow or reduce liabilities.