ALEXANDRA MASON LIMITED

Executive Summary

Alexandra Mason Limited is currently experiencing financial distress, indicated by negative net assets and working capital deficits, signaling liquidity and solvency challenges. While cash reserves have improved, the company must urgently address its short-term liabilities and consider capital strengthening measures to restore financial health. Immediate action on liquidity management, cost control, and creditor negotiations is recommended to stabilize and improve the company’s financial outlook.

ALEXANDRA MASON LIMITED - Analysis Report

Company Number: 13008409

Analysis Date: 2025-07-20 16:27 UTC

Financial Health Assessment for Alexandra Mason Limited

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1. Financial Health Score: D

Explanation:
Alexandra Mason Limited currently shows several warning signs indicative of financial distress. The negative net assets and working capital position, combined with a recent deterioration in liquidity, suggest the company is struggling to maintain a healthy financial footing. The score "D" reflects a state where urgent attention is required to avoid worsening conditions.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Assets	-£937	Negative net assets indicate the company owes more than it owns — a critical symptom of financial stress.
Net Current Assets (Working Capital)	-£2,613	Negative working capital signals potential liquidity problems; the company may struggle to meet short-term obligations.
Cash at Bank	£1,868	Cash has improved compared to previous years, suggesting some liquidity buffer, but still insufficient against liabilities.
Current Liabilities	£4,481	High current liabilities relative to assets signal a burden of debts due within one year.
Fixed Assets	£2,069	Modest investment in tangible assets, which may or may not be easily liquidated.
Shareholders' Funds	-£937	Equity is negative, meaning the business is technically insolvent on a balance sheet basis.
Turnover (not disclosed)	Not available	Unable to assess revenue trend which would provide additional insight into operational health.

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3. Diagnosis: What the Financial Data Reveals

• Symptom of Financial Distress: The company exhibits classic symptoms of financial distress, including negative net assets and working capital. This is akin to a patient whose vital signs indicate organ strain: the company’s balance sheet shows it owes more than it owns, a serious "health" concern.

• Liquidity Challenges: Despite an increase in cash reserves to £1,868, the company’s current liabilities are more than double that amount (£4,481). This mismatch suggests a "cash flow blockage" – the company may struggle to pay creditors on time, risking operational disruption.

• Recovery Signs: The increase in cash compared to previous years and the acquisition of tangible fixed assets (£3,103 cost less £1,034 depreciation = £2,069 net) could be interpreted as the company trying to invest in operational capacity or assets to improve future performance. However, these assets are relatively small and may not provide immediate liquidity relief.

• Profitability Unknown: The absence of turnover and profit/loss data limits a full assessment, but the worsening balance sheet suggests ongoing losses or insufficient profitability to cover liabilities.

• Owner-Managed Risk: The sole director and 100% owner, Miss Danielle Walch, holds full control, which can be a double-edged sword—decisions can be swift, but risk management depends heavily on her expertise and resources.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Liquidity Management: Immediate focus on improving cash flow through tighter control of receivables (though currently no debtors reported) and negotiating extended payment terms with suppliers to ease short-term cash outflows.

• Address Negative Net Assets: Consider capital injection or shareholder loans to restore positive equity and strengthen the balance sheet. This is like administering a vital infusion to stabilize the patient.

• Cost Control and Revenue Enhancement: Undertake a detailed review of operating costs and explore opportunities to increase sales or diversify revenue streams to improve profitability and cash generation.

• Debt Restructuring: Engage with creditors to restructure short-term liabilities where possible, possibly converting some current liabilities into longer-term obligations to ease immediate pressure.

• Regular Financial Monitoring: Implement monthly financial reviews focusing on cash flow forecasts and key ratios to detect early warning signs and enable timely interventions.

• Professional Advice: Given the symptoms of distress, consulting with a financial advisor or restructuring specialist may help develop a turnaround plan before conditions worsen.

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