WILLIAMS REAL ESTATE MANAGEMENT LTD

Executive Summary

Williams Real Estate Management Ltd is in a critical financial state with worsening liquidity and negative net assets signaling distress. Immediate actions to improve cash flow, restructure debt, and inject capital are essential to stabilize the business and prevent insolvency. Without intervention, the company’s financial health will likely deteriorate further.

WILLIAMS REAL ESTATE MANAGEMENT LTD - Analysis Report

Company Number: 13743656

Analysis Date: 2025-07-20 19:04 UTC

Financial Health Assessment: WILLIAMS REAL ESTATE MANAGEMENT LTD

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1. Financial Health Score: D

Explanation:
The company shows significant financial distress. Net liabilities, negative shareholders’ funds, and worsening working capital deficits indicate poor financial health. The score reflects the risk of insolvency without corrective action.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Current Assets (Cash only)	231	690	Very low cash reserves, declining trend indicates tightening liquidity ("weak pulse").
Current Liabilities	1,238	853	Short-term debts increasing, putting pressure on immediate obligations ("rising fever").
Net Current Assets (Working Capital)	-1,007	-163	Negative and worsening; company owes more than it owns short-term ("symptom of liquidity distress").
Net Assets (Shareholders' Funds)	-1,007	-163	Negative equity signals accumulated losses and insolvency risk ("poor health indicator").
Share Capital	100	100	Minimal capital base, no improvement.
Director’s Loan Account	548	193	Increased reliance on director funding to sustain operations, showing internal financial strain.

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3. Diagnosis

• The company is experiencing severe liquidity issues: cash reserves are minimal and declining, while current liabilities have increased markedly.
• The negative and deteriorating working capital suggests the business is struggling to meet short-term obligations, a clear symptom of financial distress.
• Negative net assets/shareholders’ funds highlight that the company has accumulated losses exceeding its capital base, signaling insolvency risks.
• The increase in the director’s loan account implies reliance on personal funding to keep the business afloat, which is a warning sign of underlying cash flow problems.
• The company’s business model (real estate letting and management) typically requires steady cash flow and asset backing, neither of which is evident here.
• No audit was required, and the accounts are prepared under the small companies regime, which limits transparency but does not mask the evident financial symptoms.

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4. Recommendations

• Urgent cash flow management: Immediate focus on improving liquidity by collecting receivables faster, renegotiating payment terms with creditors, or injecting fresh capital. Consider short-term financing options cautiously.
• Debt restructuring: Engage creditors and the director to formalize repayment plans to ease short-term pressures and prevent insolvency.
• Cost control: Analyze and reduce operating expenses to stabilize cash outflows.
• Capital injection: The director or new investors should consider injecting equity to improve the capital structure and restore net assets to positive territory.
• Financial forecasting: Prepare detailed cash flow forecasts to monitor future liquidity and identify potential shortfalls early.
• Seek professional advice: Consult a financial advisor or insolvency practitioner to explore restructuring or turnaround strategies before financial health worsens.
• Transparency and compliance: Maintain timely filings and consider preparing more detailed management accounts to aid decision-making.

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Medical Analogy Summary:
The company shows "symptoms of financial distress" such as a "weak cash flow pulse," "rising liabilities fever," and "negative equity blood pressure," indicating a "critical condition." Without swift intervention to "administer liquidity therapy" and "debt relief," the prognosis is poor, with high risk of insolvency.

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