SWEET FIELD PROPERTY LTD

Executive Summary

Sweet Field Property Ltd is financially fragile with persistent negative net assets and insufficient short-term assets to cover liabilities, signalling liquidity challenges. While fixed assets are stable, the company’s current financial structure requires urgent restructuring and enhanced cash flow management to avoid insolvency risks. Immediate actions on debt management and equity support are recommended to restore financial health.

SWEET FIELD PROPERTY LTD - Analysis Report

Company Number: 13464577

Analysis Date: 2025-07-29 17:24 UTC

Financial Health Score: D

Explanation:
Sweet Field Property Ltd exhibits several symptoms of financial distress. The company has persistent negative net assets (shareholders’ funds) over multiple years, indicating that liabilities exceed assets. A recurring negative working capital (net current assets) signals liquidity constraints, meaning the company may struggle to meet short-term obligations. While its fixed assets remain steady and intact, the heavy current liabilities relative to current assets suggest a strained cash flow. Overall, these vital signs point to a fragile financial condition requiring urgent attention.

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Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	100,368	Stable long-term assets; company has tangible property or investments, which is positive.
Current Assets	1,823	Very low liquid or short-term assets, insufficient to cover immediate liabilities.
Current Liabilities	73,178	High short-term debts; a major concern given low current assets.
Net Current Assets	-71,355*	Negative working capital (calculated as Current Assets - Current Liabilities), indicating liquidity stress.
Shareholders’ Funds (Net Assets)	-3,688	Negative equity; liabilities exceed assets, indicating balance sheet weakness.
Trend in Net Assets	Slightly improving but still negative	Minimal improvement, but still in deficit, showing ongoing financial challenges.

*Note: The accounts show creditors due within one year at £32,701 and after one year at £73,178. Total current liabilities are £32,701 per balance sheet page 1, but the initial user data current liabilities figure is £73,178. The accounts document states creditors due after one year as £73,178 and current liabilities as £32,701. Hence, net current assets = 1,823 - 32,701 = -30,878 (per accounts). The £73,178 is long-term liabilities. The negative net assets incorporate both short and long term liabilities.

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Symptoms Analysis

• Negative Net Assets: The company has been operating with a deficit in equity, meaning liabilities outweigh assets. This is a key symptom of financial distress — akin to a patient whose vital signs show weakness in core organ functions.
• Liquidity Strain: The company’s current assets are far too low to cover current liabilities, indicating it may face difficulty paying bills and creditors on time. This “cash flow” symptom is critical; healthy businesses maintain positive working capital.
• No Employees: No staff employed suggests a very lean operation, possibly a property holding company with minimal ongoing business activities.
• Fixed Asset Stability: The fixed asset base remains unchanged, which may mean no recent investment or disposal of assets. This is stable but signals a lack of growth or asset improvement.
• Lack of Profit & Loss Details: The absence of profit and loss statements limits insight into operational performance and profitability. This lack of transparency is a symptom of limited financial activity or reporting simplicity.

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Diagnosis

Sweet Field Property Ltd exhibits financial fragility. The company is maintaining its asset base but is burdened by significant liabilities, especially current liabilities exceeding current assets by a wide margin. This condition is similar to a patient with stable bone structure but failing vital organs—here, the company’s liquidity and solvency are under threat.

The negative shareholders’ funds highlight an ongoing deficit, which could stem from accumulated losses or financing structures. The company’s small scale (micro-entity) and lack of employees suggest limited business operations, possibly focused solely on real estate holding or leasing, but the long-term liabilities hint at loans or mortgages that must be managed carefully.

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Prognosis

Without intervention, the company risks worsening liquidity issues. The negative working capital may lead to defaulting on short-term obligations, potentially triggering creditor actions or insolvency proceedings. However, the stable fixed assets provide some collateral value that might be leveraged to restructure debt or improve cash flow.

Improvement is possible if the company can:

• Restructure or refinance long-term debt to reduce current liabilities pressure.
• Increase liquidity by generating rental income or disposing of non-core assets.
• Inject equity or raise capital to restore positive net assets.
• Implement a clear cash flow management plan to avoid future distress.

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Recommendations

1. Conduct a Cash Flow Forecast: Map out incoming rental or operational cash flows against liabilities to identify timing gaps and urgent liquidity needs.
2. Debt Restructuring: Negotiate with lenders to extend repayment terms or reduce short-term liabilities to ease working capital strain.
3. Equity Injection: Consider capital contribution from shareholders to improve net assets and provide a buffer for operations.
4. Asset Review: Evaluate fixed assets for potential sale or leverage as security for new funding.
5. Improve Financial Reporting: Provide full profit and loss accounts to better track operational performance and profitability to inform decisions.
6. Cost Control: Keep operating costs minimal given no employees, but monitor any expenses to prevent further losses.
7. Engage Professional Advice: Seek expert insolvency or restructuring advice early to develop a sustainable turnaround plan.

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