Company Number: 13918444

Analysis Date: 2025-07-29 20:32 UTC

Financial Health Assessment: 03TIMES LIMITED (as of 28 February 2025)

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1. Financial Health Score: D

Explanation:
The company’s financial health is currently fragile, showing some "symptoms of distress" such as minimal net assets and very limited working capital. While the company is not insolvent, the financial position is weak with low liquidity and negative investments, signaling caution. The score D reflects a need for improved financial stability and stronger cash flow management to avoid further deterioration.

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2. Key Vital Signs

Metric	2025 Value (£)	Interpretation
Current Assets	68	Extremely low; almost negligible short-term resources.
Cash at Bank and in Hand	95	Cash available is minimal and barely covers short-term obligations.
Current Liabilities	11	Very low short-term debts; manageable but check loan structure.
Net Current Assets	57	Positive but very small working capital; indicates limited operational buffer.
Net Assets (Equity)	57	Positive but marginal shareholder equity; company is very lightly capitalised.
Investments (Current Asset)	-27	Negative value here suggests disposals or impairments; potential red flag.
Loans from Directors	956	Significant loan from director classified under current liabilities; indicates reliance on director funding.
Average Employees	0	No employees; likely a very small or dormant operational status.

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3. Diagnosis: What the Numbers Reveal

• Liquidity & Cash Flow: The company has "healthy cash flow" in the sense that cash is positive and current liabilities are low; however, the absolute cash amount (£95) is very small, suggesting limited operational scale or very tight cash management. The positive net current assets (£57) indicate the company can cover its immediate debts but with a very thin margin, akin to a patient with borderline vital signs.

• Capital Structure: The minimal shareholders’ funds (£57) reflect a very modest capital base. This signals a company still in early stages or operating with limited external funding. The director’s loan (£956) is a significant liability, showing dependence on internal financing rather than external credit or equity, which could be a symptom of financial stress or start-up phase reliance.

• Asset Quality: The negative investment figure (-£27) is unusual for current assets, implying either disposals at a loss or accounting adjustments. This could be a "symptom of distress" and warrants careful review, as it may indicate poor asset management or write-downs.

• Operating Scale: No employees and low asset base suggest the company is either a micro-business or in a foundational stage, possibly not yet fully operational or generating significant revenues.

• Trend Review:

  • 2023: Net Assets were negative (-£366), showing earlier financial distress.
  • 2024: Recovery to +£82, a positive sign.
  • 2025: Slight decline to +£57, indicating some stagnation or mild deterioration.

This trend suggests the company is slowly recovering but remains vulnerable.

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4. Recommendations: Steps to Improve Financial Wellness

1. Strengthen Cash Reserves: Build up cash balance to create a more comfortable liquidity buffer. This can be achieved by improving receivables collection or injecting additional equity.

2. Reduce Director Loan Reliance: Consider restructuring or formalising director loans or seek external financing to reduce dependency on a single source, improving financial resilience.

3. Review Asset Management: Investigate the cause of the negative investments figure. Dispose of underperforming assets or avoid further impairments to prevent erosion of net assets.

4. Increase Operational Scale: If viable, grow operations (e.g., hire employees, expand sales) to generate sustainable revenues and profits, improving the company’s financial "vital signs."

5. Regular Financial Monitoring: Implement monthly cash flow and working capital reviews to detect early "symptoms of distress" and enable timely intervention.

6. Strategic Planning: Develop a clear business plan to move from start-up phase toward profitability, focusing on core activities in freight transport and clothing wholesale.

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Summary in Medical Terms:

The company currently resembles a patient with borderline vital signs: it has minimal cash and equity but is not yet in critical condition. There are "symptoms" such as reliance on director loans and negative asset adjustments that require attention. With prompt management action to build liquidity and reduce financial stress, the prognosis can improve from fragile to stable.

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