S&O PROPERTY MANAGEMENT LIMITED

Executive Summary

S&O Property Management Limited shows persistent negative net assets and working capital deficits, indicating financial distress despite improved cash reserves. Immediate actions to strengthen liquidity, control costs, and inject capital are recommended to restore financial health and ensure sustainable operations going forward.

S&O PROPERTY MANAGEMENT LIMITED - Analysis Report

Company Number: 13829462

Analysis Date: 2025-07-20 12:32 UTC

Financial Health Assessment of S&O Property Management Limited

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1. Financial Health Score: D

Explanation:
The company shows persistent negative net assets and net current assets over the past three years, indicating ongoing financial distress. Although cash levels have improved, liabilities still exceed assets, reflecting a balance sheet under strain. The score "D" reflects significant financial health concerns requiring attention.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	2022 (£)	Interpretation
Cash at bank	10,437	3,116	3,116	Cash improved, signaling better liquidity but still modest for operational needs.
Current Liabilities	19,927	7,000	7,000	Current liabilities have nearly tripled, indicating higher short-term obligations.
Net Current Assets	-9,490	-3,884	-3,884	Consistent negative working capital signifies cash flow challenges and difficulty meeting debts.
Net Assets	-9,490	-3,884	-3,884	Negative net assets suggest liabilities exceed total assets, a critical symptom of distress.
Shareholders' Funds	-9,490	-3,884	-3,885	Mirrors net assets, indicating accumulated losses or capital deficiency.

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3. Diagnosis

S&O Property Management Limited is experiencing clear "symptoms of financial distress." The negative net assets and net current assets across three consecutive years indicate the company’s liabilities outweigh its assets, a sign of balance sheet weakness. This condition reflects that the company is "under medical observation" for solvency issues.

The rising current liabilities, combined with modest increases in cash reserves, show attempts to manage liquidity but not yet achieving a healthy cash flow position. The lack of employees and the company's recent incorporation (2022) suggest it is still in an early stage, likely investing in business setup but struggling to generate sufficient revenue or capital to cover obligations.

The company benefits from being a small private limited company and has filed accounts on time, which is positive from a compliance standpoint. However, the financial indicators reveal that without intervention, the company may face difficulty sustaining operations or attracting further investment.

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4. Recommendations

• Improve Working Capital Management: Urgently address the negative net current assets by reducing short-term liabilities or increasing current assets. This could involve negotiating longer payment terms with creditors or accelerating receivables collection.

• Capital Injection: Consider an equity injection from the shareholder or seek external funding to restore positive net assets and strengthen the balance sheet.

• Cost Control: Review and cut unnecessary expenses since there are no employees currently, ensuring overheads are minimized to preserve cash.

• Revenue Generation: Accelerate business development efforts to increase turnover and generate healthy cash inflows, improving overall liquidity.

• Regular Financial Monitoring: Adopt a more frequent financial review process to detect "early symptoms" of cash flow or solvency issues and respond proactively.

• Professional Advice: Engage financial advisors or restructuring specialists to explore options such as refinancing or restructuring debt if required.

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