SKIRROW PROPERTY SERVICES LIMITED

Executive Summary

SKIRROW PROPERTY SERVICES LIMITED is a young company showing early signs of financial stability with positive net assets but faces liquidity challenges reflected by negative working capital. The financial health score is "C," indicating caution but with potential for recovery and growth through improved cash flow management and working capital optimisation. Close monitoring and prudent financial controls are recommended to support sustainable business development.

SKIRROW PROPERTY SERVICES LIMITED - Analysis Report

Company Number: 15113425

Analysis Date: 2025-07-20 14:01 UTC

Financial Health Assessment: SKIRROW PROPERTY SERVICES LIMITED

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1. Financial Health Score: C

Explanation:
As a newly incorporated company (less than 1.5 years old), SKIRROW PROPERTY SERVICES LIMITED shows early-stage financial indicators typical of a start-up. The company has positive net assets (£7,449) but exhibits a working capital deficit (net current assets: -£9,449), signalling some liquidity strain. The balance sheet is stable but reveals symptoms warranting close monitoring to ensure sustainable operations. The financial health is rated "C" reflecting a cautious outlook with room for improvement.

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2. Key Vital Signs: Critical Metrics and Interpretation

Metric	Value	Interpretation
Net Assets (Shareholders' Funds)	£7,449	Positive net assets indicate the company’s overall value exceeds its liabilities, a healthy sign.
Net Current Assets (Working Capital)	-£9,449	Negative working capital suggests short-term liabilities exceed short-term assets, a liquidity concern.
Cash at Bank	£12,870	Reasonably healthy cash reserve for a start-up, indicating some immediate liquidity support.
Current Liabilities	£25,243	Relatively high short-term obligations compared to current assets, caution is advised.
Fixed Assets (Tangible + Intangible)	£18,119	Investments in fixed assets including goodwill (£5,400) reflect capital deployed but also amortization charges.
Debtors	£2,924	Modest receivables suggest limited credit sales or early business stage.
Company Age	~1 year old	Early financial year with limited operational history, typical for new ventures.
Employee Count	1 (Director)	Sole operator model, which can limit operational scalability but reduce overhead costs.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Liquidity Symptoms:
  The company shows symptoms of short-term financial stress indicated by negative working capital. This is akin to a patient whose immediate cash flow is insufficient to cover current bills. However, a relatively healthy cash balance (£12,870) provides a buffer to manage short-term obligations.

• Capital Structure and Solvency:
  The positive net assets confirm that the company is solvent with more assets than liabilities. This is comparable to a patient with a stable heart rate and blood pressure — the foundation is sound.

• Asset Management:
  The company has invested in tangible assets (£12,719 net) and intangible assets (goodwill £5,400 net), showing a commitment to building operational capacity. Amortisation and depreciation charges are starting to be recognised, which is normal for a new business setting up its physical and intellectual asset base.

• Operational Scale:
  With only one employee (the director), the company is in its infancy, limiting revenue-generating capacity but also keeping expenses low. This is similar to a patient in early recovery stages: cautious but with potential for growth.

• Risk Factors:
  The high level of current liabilities relative to current assets is a warning sign, analogous to symptoms of distress. The company must manage cash flows carefully to avoid liquidity crises.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Working Capital:
  Focus on reducing current liabilities or increasing current assets. Negotiate longer payment terms with suppliers or accelerate debtor collections to improve liquidity — akin to improving oxygen flow to stressed tissues.

• Cash Flow Management:
  Maintain and monitor a healthy cash reserve. Prepare detailed cash flow forecasts to anticipate and mitigate short-term liquidity shortages.

• Revenue Growth Strategy:
  As a micro-enterprise, explore strategies to grow turnover sustainably to build stronger cash inflows. This will help convert the current "symptoms" of liquidity strain into "healthy cash flow."

• Cost Control:
  Keep overheads minimal in the short term, given the sole employee structure. Avoid unnecessary capital expenditure until cash flow stabilizes.

• Financial Monitoring:
  Regularly review financial statements and key ratios to detect early signs of distress. Engage with accountants or financial advisors periodically for guidance.

• Compliance and Reporting:
  Continue timely filing of accounts and confirmation statements to maintain good standing and credibility with regulators and financiers.

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