SHIV R PROPERTY LTD

Executive Summary

SHIV R PROPERTY LTD exhibits significant liquidity challenges and negative equity, indicating financial distress despite investment in fixed assets. Immediate focus on improving cash flow, restructuring debt, and maximizing asset returns is critical to stabilizing the company’s financial health. Without intervention, the prognosis suggests increasing risk of insolvency.

SHIV R PROPERTY LTD - Analysis Report

Company Number: 14174819

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

Financial Health Assessment of SHIV R PROPERTY LTD as of 30 June 2024

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1. Financial Health Score: D

Explanation:
The company shows significant signs of financial distress. It has negative net assets (shareholders' funds), indicating the company owes more than it owns. The working capital position has deteriorated sharply from positive to a large negative figure within one year, which signals a liquidity crunch. The overall financial vitality is weak, and urgent corrective measures are needed to restore a healthy financial state.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£247,213	Investment in long-term property assets; a positive sign if income-generating
Current Assets	£3,844	Very low short-term assets (cash, receivables) to cover immediate liabilities
Current Liabilities	£151,679	High short-term obligations due within a year
Net Current Assets (Working Capital)	-£126,283	Strong symptom of liquidity distress; insufficient current assets to cover short-term liabilities
Total Assets less Current Liabilities	£120,930	Reflects fixed assets minus current liabilities; still positive but declining
Creditors due after one year	£151,679	Significant long-term debt burden
Net Assets (Shareholders' Funds)	-£30,749	Negative equity indicates insolvency on a balance sheet basis

Additional Observations:

• The company has no employees, which reduces payroll burden but may limit operational capacity.
• The balance sheet shows a sharp increase in fixed assets from zero in 2023 to £247,213 in 2024, likely property acquisitions or capital investments.
• Current assets plummeted from £141,666 in 2023 to £3,844 in 2024, suggesting cash or receivables have been depleted.
• Current liabilities increased dramatically from £6,596 in 2023 to £130,127 in 2024, indicating a build-up of short-term debt or payables.

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3. Diagnosis

SHIV R PROPERTY LTD is showing symptoms of financial distress, primarily liquidity problems. The company's working capital has turned negative, which is akin to a patient whose vital signs are unstable due to insufficient fluid (cash) in their veins. The negative net assets position indicates that the business is technically insolvent, meaning if it were to liquidate all assets now, it would not be able to cover its liabilities fully.

The significant investment in fixed assets could be a positive sign if these assets generate income or appreciate in value. However, the drastic reduction in current assets and the surge in current liabilities raise concerns about the company's ability to meet its short-term obligations. This could indicate cash flow difficulties, potentially risking creditor pressure or operational disruption.

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4. Recommendations

To improve financial wellness and avoid further deterioration, the company should consider the following steps:

• Improve Liquidity: Focus on boosting current assets, particularly cash availability. This could include accelerating debtor collections, restructuring payment terms with creditors, or injecting additional capital.

• Debt Restructuring: Negotiate with creditors to extend payment terms, reduce interest rates, or convert some debt to equity to ease short-term pressure.

• Asset Utilization: Ensure fixed assets acquired are actively contributing to income, such as rental income from property. If not, consider disposing of non-core or underperforming assets to raise cash.

• Cost Control: Maintain minimal overheads given no employees, and scrutinise all expenses to preserve cash flow.

• Financial Monitoring: Implement robust cash flow forecasting and regular financial health checks to detect early warning signs and act promptly.

• Seek Professional Advice: Engage with insolvency practitioners or financial advisors to explore options if liquidity issues worsen.

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