SCOBIE PROPERTY MANAGEMENT LTD

Executive Summary

Scobie Property Management Ltd, a young and active property management company, shows stable financial health with positive cash reserves and net assets indicating sound liquidity and solvency. The company is in an early growth phase with minimal equity and scale, but no immediate financial distress symptoms. Building equity, growing revenues, and maintaining healthy cash flow will be key to strengthening its financial position going forward.

SCOBIE PROPERTY MANAGEMENT LTD - Analysis Report

Company Number: SC760393

Analysis Date: 2025-07-29 12:26 UTC

Certainly. Below is a comprehensive financial health assessment of Scobie Property Management Ltd based on the information provided.

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1. Financial Health Score: B-

Explanation:
Scobie Property Management Ltd is a very young private limited company incorporated in February 2023, with its first financial year ending February 2024. Its financial statements show positive net current assets and shareholders' funds, indicating a stable start. However, the company has limited history, minimal equity (£100 share capital), and relatively modest net assets (£11,329). The company is currently in a stable and solvent position but still in an early growth stage with limited financial depth and scale. Hence, a grade of B- reflects a sound but nascent financial health status with room to build resilience.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash at Bank	42,313	Healthy cash reserves for a startup; indicates good liquidity and ability to meet short-term obligations.
Current Liabilities	30,984	Short-term obligations are manageable given cash and working capital.
Net Current Assets	11,329	Positive working capital; business can cover its short-term debts comfortably.
Share Capital	100	Minimal paid-in equity; typical for a new small company.
Shareholders' Funds (Equity)	11,329	Positive net assets; company is solvent with assets exceeding liabilities.
Number of Employees	1	Micro-scale operation; low overheads but limited capacity for growth.
Account Category	Total Exemption Full	Small company exemption filed; limited disclosure but compliant with statutory requirements.
Status	Active	Company is currently trading and compliant with filing deadlines.

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3. Diagnosis

Financial "Symptoms":

• Healthy cash flow indicator: The company holds £42,313 in cash against £30,984 in current liabilities, suggesting it can comfortably meet immediate debts and operational expenses.
• Positive working capital: Net current assets of £11,329 indicate liquidity buffer and short-term financial stability.
• Minimal shareholder equity: Share capital of £100 is very low, but retained earnings (accumulated profits) of £11,229 show the company generated some profit or retained value in its first year.
• Limited scale and growth: With only one employee and being less than two years old, the company is in the startup phase. It has yet to demonstrate sustained growth or scale.
• No audit required: Being a small company with exemption status means financial scrutiny is limited, which is typical but reduces transparency for external stakeholders.

From a financial "health" perspective, the company shows no distress signals such as negative net assets, cash shortages, or overdue filings. The balance sheet "vitals" are stable, though the company’s scale and capital base remain modest.

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4. Recommendations

To strengthen and improve its financial wellness, Scobie Property Management Ltd should consider the following actions:

1. Build Equity Base:

   • Consider increasing share capital or seeking additional investment to bolster the equity foundation and support future expansion.

2. Revenue Growth and Diversification:

   • Focus on increasing turnover by expanding client base in property management, leveraging the active website and local presence in Edinburgh and St Andrews.

3. Maintain Healthy Cash Flow:

   • Continue to monitor cash reserves closely to ensure operational liquidity, particularly as the company grows and takes on more contracts or hires additional staff.

4. Financial Reporting Transparency:

   • Though audit exemption applies, consider voluntarily preparing fuller financial statements including profit and loss accounts to improve stakeholder confidence and assist with financial planning.

5. Operational Scaling:

   • Evaluate hiring additional staff or outsourcing to manage increased workloads and improve service offerings, which can accelerate growth.

6. Risk Management:

   • Establish basic financial controls and budgeting to anticipate seasonal or market fluctuations in property management fees.

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