Company Number: 14376650

Analysis Date: 2025-07-29 20:08 UTC

Financial Health Assessment for Wirral Property SPV Ltd as of 30 September 2024

---

1. Financial Health Score: D

Explanation:
The company exhibits signs of financial distress primarily due to its negative net assets and working capital deficiency, despite some growth in asset value. The ongoing losses reflected in the accumulated deficit and the reliance on director and bank loans compromise its financial stability. While there is an increase in investment property value, the company’s liquidity position and equity base are weak, warranting a below-average rating.

---

2. Key Vital Signs

Metric	2024 Value	Interpretation
Cash at Bank	£4,155	Minimal cash reserves, indicating tight liquidity and limited buffer for immediate expenses or obligations.
Current Liabilities	£91,473	High short-term obligations, primarily loans from directors (£71,707), creating pressure to meet upcoming payments.
Net Current Assets (Working Capital)	-£68,052	Negative working capital, a critical symptom of liquidity issues; company may struggle to cover short-term liabilities with current assets.
Fixed Assets (Investment Property)	£122,000	Growing asset base due to property acquisition, which is a positive sign, but these are illiquid and cannot quickly resolve cash flow issues.
Total Assets Less Current Liabilities	£53,948	Positive after deducting current liabilities, reflecting asset growth but still offset by long-term debt.
Creditors Due After One Year (Bank Loans)	£91,473	Significant long-term debt introduced in 2024, increasing financial leverage and future repayment obligations.
Net Assets (Shareholders’ Funds)	-£37,525	Negative equity indicates accumulated losses and that liabilities exceed assets; a serious symptom of financial distress.
Revaluation Reserve	-£37,000	Reflects recent upward revaluation of property assets, which helps offset losses but is a non-cash adjustment.
Profit & Loss Account (Retained Earnings)	-£625	Marginal improvement from prior retained losses, but still negative indicating overall historical losses.

---

3. Diagnosis: Financial Condition Overview

Wirral Property SPV Ltd presents classic symptoms of a company in early-stage financial distress but with some positive signs of asset growth. The financial "vital signs" reveal:

• Liquidity Strain: Negative working capital and very low cash balances suggest the company is experiencing a "cash flow cough" — it does not have enough liquid resources to cover immediate debts, relying on director loans and new bank loans to stay afloat.
• Leverage and Solvency Concerns: The introduction of a substantial bank loan (£91,473) has increased the company’s financial leverage, raising the stakes for future debt servicing. The negative net assets (equity) indicate that liabilities exceed assets, a key symptom of insolvency risk.
• Asset Base Growth but Illiquidity: Investment property has increased significantly (£85,000 to £122,000), reflecting a strategic asset acquisition. However, property is an illiquid asset, which cannot be quickly converted to cash to relieve short-term pressures.
• Accumulated Losses: The negative retained earnings and shareholder funds highlight that the company has been operating at a loss since inception, which is common for new property investment companies but still a concern if sustained.
• Governance and Control: The company is controlled primarily by Ms. Oktawia Katarzyna Sztabinska, who is also the current director and accountant, suggesting consolidated control, which can be positive for quick decision-making but may limit external oversight.

Overall, the company resembles a patient with a chronic but manageable condition: it is not yet critically ill but requires immediate interventions to avoid worsening health.

---

4. Recommendations: Steps to Improve Financial Wellness

• Improve Liquidity Management:

  • Negotiate extended payment terms with creditors and lenders to ease short-term cash flow pressure.
  • Explore options to increase cash reserves through equity injections or short-term financing with manageable terms.
  • Consider asset-backed short-term loans with more favourable conditions than director loans.

• Strengthen Capital Structure:

  • Address negative equity by injecting additional capital or converting director loans into equity to improve solvency ratios.
  • Avoid further high-cost borrowing that could deepen financial stress.

• Enhance Cash Flow Visibility and Forecasting:

  • Implement rigorous cash flow forecasting to anticipate liquidity needs and plan payments accordingly.
  • Monitor debtor collections and any rental income streams closely to ensure timely inflows.

• Review Asset Utilization:

  • Consider whether the investment property portfolio can generate sufficient rental income or if any assets can be liquidated or leveraged to improve cash position.
  • Evaluate property valuations regularly to ensure they reflect true market value.

• Governance and Oversight:

  • Potentially bring in additional directors or advisors to provide broader oversight and financial expertise.
  • Ensure compliance with filing deadlines and statutory requirements to maintain good corporate standing.

---