SMARTEE PROPERTY LIMITED

Executive Summary

SMARTEE PROPERTY LIMITED is a young property company currently exhibiting signs of financial distress, primarily due to a severe working capital deficit and negative equity. The company holds valuable fixed assets but lacks sufficient liquid assets to meet short-term obligations, indicating a fragile financial state. Immediate action to improve liquidity and strengthen the balance sheet is critical to ensure sustainable business operations and avoid insolvency risks.

SMARTEE PROPERTY LIMITED - Analysis Report

Company Number: 14527745

Analysis Date: 2025-07-29 12:50 UTC

Financial Health Assessment for SMARTEE PROPERTY LIMITED

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1. Financial Health Score: D

Explanation:
The company shows clear symptoms of financial distress, primarily indicated by significant negative net current assets and negative shareholders’ funds. While it is a very young micro-entity (incorporated December 2022), the current financials reveal a fragile position that requires urgent attention to restore financial wellness.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£221,235	Represents property/assets owned; a positive sign.
Current Assets	£798	Very low cash/debtors; poor short-term liquidity.
Current Liabilities	£239,000	High short-term debts that must be paid soon.
Net Current Assets	-£238,202	Severe working capital deficiency; "cash flow anemia".
Total Assets Less Current Liabilities	-£16,967	Negative figure indicates liabilities exceed assets.
Creditors > 1 Year (long-term liabilities)	£5,000	Small long-term debt burden relative to liabilities.
Net Assets / Shareholders’ Funds	-£21,967	Negative equity; company owes more than it owns.
Staff Employed	0	No staff, indicating early-stage operations or asset-holding status.

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3. Diagnosis: Financial Condition and Underlying Health

SMARTEE PROPERTY LIMITED presents with symptoms akin to a patient with severe "financial distress syndrome":

• Working Capital Deficiency: The company’s negative net current assets of £238k indicate it lacks the short-term financial resources to meet its immediate obligations. This is a critical symptom suggesting liquidity risk, which can lead to insolvency if not managed.

• Negative Equity: The shareholders’ funds being negative (£21,967) reflect accumulated losses or capital shortfalls. This shows the company is "underwater," meaning its liabilities exceed its assets, a sign of financial weakness.

• Young Company with Asset Base: The fixed assets (£221,235) suggest the company holds property or investments, consistent with its SIC codes related to real estate. However, the asset base is insufficient to cover debts, and the lack of current assets (cash or receivables) may signal poor cash conversion or early-stage investment phase.

• No Employees: The absence of staff could mean minimal operating expenses but also limited operational activity or revenue generation capacity at this stage.

• No Audit Requirement: As a micro-entity, the company benefits from simplified reporting, but this also means less external scrutiny, which can mask emerging risks.

Overall, the company is in an early phase with a real estate focus but currently suffers from significant liquidity and solvency concerns. The financial data reveals symptoms of distress that, if untreated, could worsen.

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4. Recommendations: Steps Toward Financial Wellness

To transition from its current fragile state to a healthier financial condition, SMARTEE PROPERTY LIMITED should consider the following:

1. Improve Liquidity:

   • Inject additional working capital through equity or short-term financing.
   • Accelerate cash inflows by managing receivables or monetising assets.
   • Negotiate extended payment terms with creditors to ease immediate cash pressure.

2. Balance Sheet Strengthening:

   • Seek capital contributions from shareholders or new investors to restore positive equity.
   • Review fixed assets for possible sales or refinancing to improve cash reserves.

3. Operational Review:

   • Develop a clear business plan to generate sustainable revenue streams from property activities.
   • Consider employing key personnel or consultants to manage property assets effectively.

4. Financial Monitoring:

   • Establish regular financial health checks focusing on liquidity ratios (e.g., current ratio), debt levels, and cash flow forecasts.
   • Consider external advice or restructuring if financial distress deepens.

5. Compliance and Governance:

   • Ensure all filings remain timely to avoid penalties.
   • Maintain transparent communication with investors and creditors about financial status and recovery plans.

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