ST HELEN'S PROPERTIES LIMITED

Executive Summary

St Helen's Properties Limited demonstrates a stable financial position with a strong asset base and improving liquidity, though it carries substantial long-term debt typical of its property investment model. While the company’s financial health is currently sound, ongoing management of its debt obligations and liquidity is essential to sustain this stability and support future growth. Strategic financial oversight will help ensure the company remains financially resilient and well-prepared for market changes.

ST HELEN'S PROPERTIES LIMITED - Analysis Report

Company Number: 13112462

Analysis Date: 2025-07-20 14:09 UTC

Financial Health Assessment of ST HELEN'S PROPERTIES LIMITED

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1. Financial Health Score: C+

Explanation:
The company shows a stable but cautious financial position. It owns significant fixed assets (£90,000) with modest working capital and net assets growth over the last three years. However, the presence of substantial long-term creditors (£~77,000) creates a symptom of financial leverage that requires monitoring. The company is not in distress but shows signs of cautious health — akin to a patient with a chronic but manageable condition, needing continuous care to avoid complications.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£90,000	Healthy asset base, likely property investments consistent with real estate letting business. Stable over years, showing no impairment.
Current Assets	£11,195	Modest liquidity; an increase from prior years, indicating improving short-term resource availability.
Cash at Bank	£8,334	Adequate cash buffer improves financial flexibility; cash nearly doubled from prior year, indicating better cash flow management.
Debtors	£2,861	Manageable amount owed by customers; increase is consistent with business growth.
Current Liabilities	£4,434	Low short-term obligations relative to current assets; positive sign of working capital health.
Net Current Assets (Working Capital)	£6,761	Positive working capital, a sign of healthy short-term financial operations and ability to meet immediate obligations.
Long-Term Creditors	£76,962	Large long-term liabilities, typical in property investment but a potential stress point if cash flow weakens.
Net Assets / Shareholders’ Funds	£19,799	Growing equity base, indicating accumulated retained profits and improving financial strength.
Share Capital	£4	Nominal share capital typical of small private companies; capital structure depends more on retained earnings.

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3. Diagnosis

Vital Signs Analysis:

• The company’s fixed assets represent long-term property holdings fundamental to its business model. These assets are stable and show no impairment, indicating no current asset distress.
• Increasing cash and current assets versus current liabilities signals improving liquidity — akin to having a healthier blood pressure in a patient, reducing immediate risk.
• Positive working capital confirms the company can cover near-term obligations comfortably.
• However, the large amount of long-term creditors is a symptom of leverage typical in real estate but requires careful management. This long-term debt is like a chronic condition requiring ongoing monitoring to ensure the company services this debt without strain.
• The steady increase in net assets and retained earnings points to operational profitability or capital appreciation, a positive sign of financial wellness.

Underlying Health:
The company is financially stable with no immediate signs of distress. Its financial structure is typical for a property investment enterprise with reliance on long-term financing. The company appears to manage its liquidity well, maintaining a healthy cash flow buffer. However, the significant long-term liabilities mean it must maintain consistent income streams to avoid financial strain.

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4. Recommendations

• Monitor Long-Term Debt Service: Keep a close watch on interest payments and principal repayments on the long-term creditors to prevent financial fatigue. This is akin to managing a chronic condition proactively.
• Enhance Liquidity Reserves: Continue to build cash reserves to improve the company's ability to absorb shocks, such as unexpected expenses or market downturns. A "healthy cash flow" is vital for sustainable operations.
• Diversify Income Streams: If possible, diversify rental properties or income sources to reduce risk concentration and improve resilience.
• Regular Financial Reviews: Conduct quarterly financial health checks to detect early symptoms of financial stress, enabling timely intervention.
• Strategic Debt Management: Explore opportunities to refinance or restructure long-term debt to more favourable terms if market conditions permit.
• Maintain Compliance and Transparency: Ensure timely filing of accounts and returns to avoid administrative penalties and maintain stakeholder confidence.

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