Company Number: 13127884

Analysis Date: 2025-07-20 17:48 UTC

Financial Health Assessment for TEO PROPERTIES LTD

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1. Financial Health Score: D

Explanation:
TEO PROPERTIES LTD exhibits significant financial distress symptoms, primarily due to persistent net liabilities and negative shareholders’ funds over recent years. While fixed assets are substantial relative to the company size, the working capital position is weak, indicating liquidity challenges. The financial health score "D" reflects a concerning but not yet critical state, where urgent remedial action is advisable.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	162,234	Strong asset base, likely property holdings aligned with SIC codes related to real estate. This is a key strength.
Current Assets	3,054	Very low liquid assets, indicating limited available cash or receivables to meet short-term obligations.
Current Liabilities	135,511	High short-term debts, creating pressure on liquidity.
Net Current Assets	-26,849	Negative working capital—"symptom of distress" as the company owes more in the short-term than it can cover with current assets.
Creditors > 1 Year	135,511	Large long-term liabilities almost equal to asset base, indicating leverage.
Net Assets / Shareholders’ Funds	-966	Negative net worth—a red flag showing that liabilities exceed assets, reducing company solvency.
Share Capital	100	Minimal share capital, typical for a micro-entity but offers little equity buffer.
Director Advances	-20,501	Director has provided personal funds to the company, indicating reliance on insider financing to manage cash flow.

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3. Diagnosis

TEO PROPERTIES LTD’s financial "vital signs" reveal a company carrying a heavy burden of liabilities relative to its asset base. The fixed assets, reflecting property holdings, are the company’s primary strength but are heavily encumbered by both short-term and long-term creditors. The persistent negative net current assets and shareholders’ funds indicate ongoing liquidity and solvency challenges — much like a patient with a weakened heart struggling to supply adequate blood to the body.

The company is effectively "under financial strain," with more debts than liquid resources to cover them in the near term. The slight improvement in net liabilities from -9,232 GBP in 2023 to -966 GBP in 2024 is a positive sign but still far from a healthy balance sheet. The director’s ongoing financial support through advances suggests a reliance on insider funding to maintain operations, a common "symptom" seen in businesses facing cash flow stress.

No overdue filings or administrative issues are noted, indicating compliance with regulatory requirements, which is a positive operational sign.

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4. Recommendations

To improve the financial wellness and move toward a healthier state, the following actions are advised:

• Improve Liquidity:
  Explore ways to increase current assets, such as accelerating receivables, reducing inventory, or injecting additional cash capital. Consider negotiations with creditors for extended payment terms to ease current liabilities pressure.

• Restructure Debt:
  Engage with lenders to restructure long-term liabilities, potentially converting short-term debt to longer maturities or renegotiating interest rates to reduce financial burden. This could be akin to relieving pressure on the "arteries" of the financial system.

• Capital Injection:
  Consider raising equity capital to reduce negative net assets and provide a stronger financial buffer. This would help restore "healthy blood flow" in the company's balance sheet.

• Asset Utilisation Review:
  Assess whether fixed assets (properties) can be leveraged more effectively, either through sales of non-core assets, refinancing, or rental income optimization, aligning with the company's real estate activities.

• Cash Flow Management:
  Implement stricter cash flow monitoring and forecasting to detect early warning signs and prevent liquidity crises.

• Director Support:
  Formalize any director loans or advances to ensure clear terms and safeguard governance integrity.

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