WRIGHT PROPERTY SOLUTIONS LTD

Executive Summary

Wright Property Solutions Ltd is exhibiting clear financial distress with negative net assets and significant liquidity challenges. While fixed assets have grown, the company is unable to cover its short-term liabilities, posing a risk to ongoing operations. Immediate actions to improve cash flow, manage liabilities, and consider financial restructuring are essential to restore financial health and avoid insolvency risks.

WRIGHT PROPERTY SOLUTIONS LTD - Analysis Report

Company Number: 13679549

Analysis Date: 2025-07-29 16:57 UTC

Financial Health Assessment for WRIGHT PROPERTY SOLUTIONS LTD

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1. Financial Health Score: D

Explanation:
The company displays significant financial distress, primarily evidenced by negative net assets and persistent net current liabilities. While fixed assets have increased, liquidity and working capital remain deeply negative, indicating an unhealthy financial position overall. The company is not in immediate liquidation, but warning signs are clear.

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2. Key Vital Signs:

Metric	2023 Value	Interpretation
Fixed Assets	£319,477	Increased substantially from previous years, indicating investment in long-term assets (likely property-related, fitting industry). This is a positive "organ strength" but may be illiquid.
Current Assets	£5,646	Very low cash and short-term receivables, indicating weak liquidity or "poor pulse" in cash flow terms.
Current Liabilities	£338,500	High short-term debts due within one year, a critical "symptom of distress" that could strain operations.
Net Current Assets (Working Capital)	-£332,854	Negative working capital indicates inability to cover short-term debts with current assets, a dangerous "breathing problem" for the business.
Total Assets Less Current Liabilities	-£13,377	Negative figure shows total assets can't cover current liabilities, reflecting poor financial health.
Net Assets / Shareholders' Funds	-£15,164	Negative equity means liabilities exceed assets—a "heart condition" indicating insolvency risk.

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3. Diagnosis:

Wright Property Solutions Ltd is currently suffering from significant financial stress. The company’s balance sheet reveals persistent negative net assets and deeply negative working capital over the last two years. Such "symptoms" suggest the company is "struggling to breathe" financially—its short-term obligations vastly exceed liquid assets, and even after considering fixed assets, the overall net position is negative.

The rise in fixed assets could be indicative of property acquisitions or capital investment, which may form the core of the company's business model (real estate agencies and property letting). However, these assets appear to be illiquid and insufficient to cover immediate debts. The large current liabilities suggest reliance on short-term borrowing or payables, raising concerns about the company's ability to meet its obligations on time.

Moreover, the company has only one employee/director, limiting operational capacity and possibly constraining revenue generation. The director is also the controlling shareholder, which may mean financial decisions are centralized but could limit access to external funding or governance oversight.

In sum, the company's "vital signs" are weak, with liquidity problems and negative equity signaling a precarious financial health situation. Without corrective action, the company risks insolvency or may face difficulties sustaining operations.

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4. Recommendations:

• Improve Liquidity (Address the "Breathing Problem"):

  • Negotiate with creditors to extend payment terms or reduce liabilities to improve working capital.
  • Accelerate collection of any receivables and reduce unnecessary short-term expenditures.
  • Consider short-term financing options cautiously, ensuring that new debts do not worsen liquidity.

• Asset Management:

  • Evaluate fixed assets for potential sale or refinancing (e.g., mortgage on property) to inject cash.
  • Avoid further large capital expenditures until liquidity improves.

• Financial Restructuring:

  • Explore equity injection from the controlling shareholder or external investors to shore up net assets and reduce negative equity.
  • Consider professional insolvency advice early to explore formal restructuring options if necessary.

• Operational Review:

  • Increase operational efficiency and possibly expand the team to enhance revenue-generating capacity.
  • Review pricing, contracts, and market positioning to increase cash inflows.

• Governance and Monitoring:

  • Implement regular financial monitoring with early warning indicators for cash flow issues.
  • Increase transparency and possibly appoint additional directors or advisors for governance support.

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