STEVENS PROPERTY GROUP LIMITED

Executive Summary

Stevens Property Group Limited has successfully reversed previous financial distress, moving from negative equity and heavy short-term liabilities to a positive net asset position. However, liquidity remains tight with very low cash reserves, indicating the company is in recovery but requires ongoing careful financial management to sustain its improved health and avoid relapse. Focus on strengthening cash flow and careful expense control is essential for future stability.

STEVENS PROPERTY GROUP LIMITED - Analysis Report

Company Number: 13528267

Analysis Date: 2025-07-20 18:38 UTC

Financial Health Assessment: STEVENS PROPERTY GROUP LIMITED

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1. Financial Health Score: C-

Explanation:
The company shows significant improvement in its balance sheet compared to previous years, moving from negative net assets to a positive position in the latest financial year. However, its cash resources remain very limited, and prior years' financials exhibited signs of financial distress. The overall score reflects a company in recovery but still with vulnerabilities needing attention.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	115,201	115,201	Stable investment in long-term assets, indicating consistent asset base.
Current Assets	1,698	2,626	Very low liquid assets; cash and receivables are minimal and decreasing, a symptom of tight liquidity.
Current Liabilities	674	120,576	Dramatic reduction in short-term debts, a vital sign of improved financial health.
Net Current Assets	1,024	(117,950)	Positive working capital now, showing healthier short-term financial stability.
Total Assets Less Current Liabilities	116,225	(2,749)	Shift from negative to positive net assets, a key indicator of balance sheet recovery.
Shareholders’ Funds	116,225	(2,749)	Equity turned positive, indicating the company has moved from insolvency risk to solvency.
Director’s Loan Balance	(674)	2,626	Director repaid a significant loan, improving the company’s cash position.

Vital Signs Interpretation:

• The company had been exhibiting distress previously, evidenced by large current liabilities exceeding current assets (negative working capital).
• The turnaround by 2024 is significant, with elimination of large short-term debts and a positive equity position.
• However, the company’s liquid assets remain very low (£1,698), signaling fragile liquidity—comparable to a patient whose vital signs have improved but still needs careful monitoring.

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3. Diagnosis

Underlying Financial Health:
Stevens Property Group Limited has made a notable recovery from previous years when it was burdened by heavy current liabilities and negative equity. The director’s repayment of a loan and reduction in creditors have been instrumental in stabilizing the company’s finances.

Despite this progress, the very low level of current assets points to limited cash reserves and potential difficulties in meeting unexpected short-term obligations, akin to a patient with a recovering heart condition but still vulnerable to shocks.

The company is a micro-entity with no employees and modest asset base focused on activities of head offices (SIC 70100), suggesting a lean operational model but limited cash inflow sources.

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4. Recommendations

1. Strengthen Liquidity:
   Increase available cash reserves to ensure the company can comfortably meet short-term obligations without stress. This might involve arranging a working capital facility or converting some fixed assets if possible.

2. Maintain Tight Cost Control:
   With a minimal asset and employee base, focus on controlling operating expenses to avoid slipping back into negative working capital.

3. Regular Financial Monitoring:
   Implement monthly cash flow forecasts to detect early symptoms of liquidity issues, allowing swift corrective action.

4. Director Loan Management:
   Maintain clear agreements on director loans and avoid further reliance on director advances to prevent liquidity strain.

5. Strategic Growth Planning:
   Explore opportunities to increase revenue or diversify income streams to build a healthier cash flow — the lifeblood of business health.

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