Company Number: 13815813

Analysis Date: 2025-07-29 15:23 UTC

Financial Health Assessment Report for SU & CO PROPERTY LTD

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1. Financial Health Score: D

Explanation:
The company shows significant signs of financial distress, primarily reflected in its working capital deficiency and minimal net assets relative to liabilities. Although it holds substantial fixed assets (likely property), its current liabilities vastly exceed its current assets, creating liquidity strain. The very low equity base relative to total liabilities indicates vulnerability to financial shocks.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Fixed Assets	£478,840	High fixed assets indicate investment in property, fitting the company's real estate activity.
Current Assets	£1,772	Very low, suggesting limited liquid resources or receivables available for short-term needs.
Current Liabilities	£290,736	High short-term debt creates pressure to meet obligations imminently.
Net Current Assets	-£288,964	Negative working capital — symptoms of liquidity distress and cash flow challenges.
Total Assets less CL	£189,876	After deducting current liabilities, assets still cover short-term debts, but barely.
Creditors after 1 year	£183,750	Long-term liabilities are significant, adding to financial obligations.
Net Assets / Shareholders’ Funds	£6,114	Very thin equity, indicating the company is highly leveraged and undercapitalized.
Number of Employees	3 (average)	Small workforce consistent with micro-entity classification.

Summary:
The vital signs reveal a business heavily invested in property assets but struggling with severe liquidity issues. The negative net current assets highlight the company's inability to cover short-term debts with short-term assets, a classic symptom of financial strain. The minimal equity buffer exacerbates the risk.

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3. Diagnosis

Underlying Condition:
SU & CO PROPERTY LTD is a micro-entity operating in property letting and sales. The balance sheet presents a "structural liquidity deficiency" — a serious symptom where current liabilities far exceed current assets, indicating the company may struggle to meet short-term obligations without additional financing or asset sales.

The high fixed assets suggest the company owns property, but these are illiquid and cannot be quickly converted to cash without potential loss. The thin equity and high total liabilities (both current and long-term) signify a high leverage position, which increases financial risk and reduces resilience to market downturns or unexpected expenses.

The steady fixed asset value and slight improvement in net assets from £2,613 in 2022 to £6,114 in 2023 show minimal profit retention or equity growth, indicating limited operational profitability or capital injection.

Potential Symptoms:

• Liquidity crunch risk ("cash flow blockage")
• Dependency on refinancing or asset disposals to meet debts
• Limited financial cushion to absorb shocks or invest in growth
• Possible strain on creditor relationships due to tight current liabilities

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4. Recommendations

To improve the financial health and restore stability, the following actions are advised:

1. Improve Liquidity Management:

   • Explore short-term financing options (overdraft, bridging loans) to cover current liabilities and avoid defaults.
   • Accelerate collection of any receivables or consider leasing property assets for immediate cash inflow.

2. Debt Restructuring:

   • Negotiate with creditors to extend payment terms or convert some current liabilities into longer-term debts, easing immediate pressure.

3. Capital Injection:

   • Consider equity funding from the owner or external investors to bolster shareholders’ funds, providing a buffer against insolvency.

4. Cost Control and Profitability:

   • Review operational expenses and employee costs to improve margins and retain more profits to rebuild equity.

5. Asset Utilization:

   • Evaluate if any property assets can be sold or leveraged to generate cash, ensuring a balance between liquidity and asset base.

6. Regular Financial Monitoring:

   • Implement monthly cash flow forecasting to detect liquidity issues early and plan accordingly.

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Medical Analogy Summary

SU & CO PROPERTY LTD’s financial condition is akin to a patient with a strong skeleton (fixed assets) but poor blood circulation (cash flow). The "heart" of the business—its liquidity—is weak, risking collapse under stress. Immediate intervention to improve cash flow and reduce liabilities is critical to avoid a financial "cardiac arrest."

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