Company Number: 14935474

Analysis Date: 2025-07-29 15:51 UTC

Financial Health Assessment of 13Y HOUSING LTD

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress with a negative net asset position and net liabilities. Although current assets exceed immediate liabilities, the presence of significant long-term creditors results in overall negative equity. This indicates "symptoms of financial strain," requiring close monitoring and corrective action.

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2. Key Vital Signs (Core Financial Metrics):

Metric	Value (£)	Interpretation
Current Assets	18,337	The "healthy cash flow" and short-term resources available to meet immediate obligations. Positive sign.
Current Liabilities	790	Debts due within one year; relatively low compared to current assets, indicating short-term liquidity is adequate.
Net Current Assets (Working Capital)	17,547	Positive working capital suggests day-to-day operations can be sustained without immediate cash flow issues.
Creditors (Long-term Liabilities)	31,236	Significant long-term debt or obligations, which is a "chronic symptom" of financial stress.
Net Assets (Equity)	-13,689	Negative net assets indicate that total liabilities exceed total assets, a "critical symptom" of financial distress.
Shareholders’ Funds	-13,689	Reflects the owner's equity; negative value means the business is technically insolvent on a balance sheet basis.

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3. Diagnosis:

The financial "vital signs" of 13Y HOUSING LTD reveal a mixed picture:

• Healthy Short-Term Liquidity: The company maintains sufficient current assets to cover its immediate debts, which is a positive sign akin to "stable vital signs" in a patient.
• Negative Net Worth: However, the large long-term creditors create an imbalance, resulting in negative net assets, akin to "organ dysfunction"—the business’s capital structure is impaired.
• Age and Size Considerations: Being a very recently incorporated micro-entity (just over a year old), it is common for start-ups to have initial losses and negative equity due to start-up costs, investments, or initial borrowing.
• No Audit Requirement: The company operates under micro-entity accounting standards, so detailed profit/loss analysis is unavailable, limiting deeper insight into operational performance.
• Control and Governance: The company is closely held by one director and significant controller, which can be positive for decision-making agility but may also concentrate risk.

Overall: The company is in a fragile financial state, with "symptoms" of negative equity that require attention. While liquidity is currently stable, the long-term solvency is compromised, indicating the need for financial restructuring or capital infusion.

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4. Recommendations:

To improve financial wellness, consider the following steps:

• Capital Injection: The owner or investors should consider injecting fresh equity to restore positive net assets and strengthen the balance sheet.
• Debt Restructuring: Review the terms of long-term creditors to negotiate better repayment schedules or convert debt into equity if possible.
• Cash Flow Management: Maintain tight control over cash flows to ensure ongoing ability to meet short-term obligations without stress.
• Operational Review: Although detailed P&L data is unavailable, monitor expenses closely to avoid further erosion of capital.
• Future Reporting: Prepare for more detailed financial reporting as the company grows, possibly moving beyond micro-entity status to improve transparency and attract investment.
• Professional Advice: Engage financial and legal advisors to plan a sustainable growth path and manage creditor relationships proactively.

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