THEOC PROPERTY AND LAND LIMITED

Executive Summary

THEOC PROPERTY AND LAND LIMITED is currently in poor financial health, exhibiting signs of liquidity distress and balance sheet insolvency with negative net current assets and shareholders' funds. While the company holds investment property assets, immediate cash resources are minimal, threatening its ability to meet short-term obligations. Urgent financial restructuring and liquidity improvement actions are necessary to stabilise the business and improve its financial prognosis.

THEOC PROPERTY AND LAND LIMITED - Analysis Report

Company Number: 14261988

Analysis Date: 2025-07-29 14:56 UTC

Financial Health Assessment of THEOC PROPERTY AND LAND LIMITED

---

1. Financial Health Score: D

Explanation:
The company is showing signs of financial distress with negative net current assets and shareholders' funds, indicating it is technically insolvent on a balance sheet basis. The cash reserves are minimal, and current liabilities exceed current assets significantly. While the company holds investment property valued around £189k, the working capital "vital signs" reveal liquidity stress. This score suggests urgent attention is needed to stabilise finances.

---

2. Key Vital Signs

Metric	2024 Value	Interpretation
Cash at Bank and in Hand	£120	Extremely low cash position; "heartbeat" of the company is weak.
Current Liabilities	£208,471	High short-term obligations; pressure on immediate payments.
Net Current Assets	-£208,351	"Symptom of distress" – negative working capital signals liquidity problems.
Total Assets Less Current Liabilities	-£19,206	Negative net assets, indicating insolvency on balance sheet.
Shareholders' Funds (Equity)	-£19,306	Negative retained earnings; capital erosion. Poor financial health.
Investment Property (Fixed Asset)	£189,145	Significant tangible asset base, but not liquid.

Interpretation of Vital Signs:
The cash "vital sign" is almost flatlining, with only £120 available to cover £208k of liabilities due within a year. This mismatch suggests a liquidity crisis if liabilities need to be settled imminently. The company’s investment property provides some value but cannot be quickly converted to cash without potential loss or delay. The negative shareholders' funds represent accumulated losses and a capital deficit, which is a clear "symptom" of financial strain.

---

3. Diagnosis

The company is currently operating with a severe liquidity issue and negative equity, which is akin to a patient with a failing organ system needing immediate intervention. Despite holding investment property assets valued at approximately £189k, the working capital deficit of over £208k means the company may struggle to meet short-term obligations without external funding or asset realisation. The absence of significant cash inflow reflected in accounts and continued negative net current assets over the years indicates ongoing financial pressure.

The company's financial statements show no turnover or income figures (likely because it is a small company and only a filleted set of accounts are filed), which makes it harder to assess operational profitability. The negative retained earnings and equity imply losses have accumulated since incorporation.

In summary, the company is in a precarious financial condition, with symptoms of liquidity distress and insolvent balance sheet status. Without corrective action, the prognosis is poor.

---

4. Recommendations

• Improve Liquidity (Boost Cash Flow):
  Seek additional working capital through shareholder loans or external financing to address short-term liabilities. Consider arranging overdraft facilities or short-term credit lines to avoid payment defaults.

• Asset Realisation Strategy:
  Evaluate the possibility of monetising or refinancing the investment property to raise cash. If the property is encumbered or difficult to sell, explore leasing or other income-generating options.

• Cost Control and Operational Review:
  Conduct a thorough review of operating expenses and cash outflows to identify cost savings. Establish a cash flow forecast to monitor liquidity regularly.

• Capital Restructuring:
  Consider recapitalisation options to restore positive equity. This may involve equity injections or restructuring debt to improve the balance sheet health.

• Engage Professional Advice:
  As the company is showing signs of distress, seeking advice from insolvency practitioners or financial advisors is prudent to explore turnaround options or formal restructuring if required.

---

Executive Summary