Company Number: 14543057

Analysis Date: 2025-07-20 12:32 UTC

Financial Health Assessment of ALL RENEWABLES BRITAIN LIMITED

---

1. Financial Health Score: D (Poor)

Explanation:
The company exhibits several significant financial distress symptoms, including negative net assets and net current liabilities, which indicate a weak financial position. The large creditor balances relative to very low current assets and cash suggest liquidity challenges. The financial health score of D reflects urgent need for corrective actions to avoid further deterioration.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	8,053	Extremely low asset base to cover short-term obligations.
Cash and Cash Equivalents	6,553	Very limited cash reserves, constraining day-to-day operations.
Current Liabilities	60,844	High short-term debts creating immediate liquidity pressure.
Net Current Assets	-52,791	Negative working capital ("symptom of liquidity distress").
Non-current Liabilities	109,000	Significant long-term debt burden.
Net Assets	-161,791	Negative equity ("symptom of insolvency risk").
Shareholders' Funds	-161,791	Equity is deeply negative, indicating accumulated losses exceeding capital.
Number of Employees	2	Very small workforce, consistent with micro/small company size.

Additional notes:

• The company was incorporated recently (Dec 2022), so the financials cover only the first full year of operation.
• The company is classified as a Private Limited Company engaged in wholesale and manufacture of electrical and plumbing equipment.
• Control is consolidated mainly by City Limits Holdings Ltd (75-100%), which may influence financial support decisions.

---

3. Diagnosis

The financial "vital signs" of ALL RENEWABLES BRITAIN LIMITED highlight a company currently in a fragile state. The negative net current assets reveal a "cash flow crunch"—the company does not have enough short-term assets to meet immediate liabilities, a classic symptom of liquidity distress. The large long-term creditor balance further exacerbates financial strain, placing the company at risk of default if revenues or external funding do not improve.

Negative shareholders' funds (equity) indicate the company is technically insolvent on a balance sheet basis, meaning liabilities exceed assets by a large margin. This "underlying illness" often signals accumulated losses or startup costs not yet recovered by profits. Given the company is newly incorporated, this may reflect typical early-stage investment and development costs, but it remains a warning sign that must be addressed.

The very low cash reserves and high creditor balances suggest that operational cash flow is not yet healthy. Without a "healthy cash flow pulse," the company risks inability to meet payroll, suppliers, or service debt, which could trigger insolvency procedures if not managed.

The resignation of one director recently may or may not be related to these financial pressures but is worth monitoring as part of governance and management stability.

---

4. Recommendations

To improve financial wellness and move towards recovery, the company should consider the following steps:

1. Liquidity Management:

   • Prioritize improving cash flow by accelerating debtor collections and negotiating extended payment terms with creditors.
   • Explore short-term financing options or cash injections from shareholders or parent entities to strengthen working capital.

2. Cost Control:

   • Rigorously review and reduce overheads and discretionary spending to conserve cash.
   • Optimize inventory and operational efficiencies to reduce cash tied up in stock.

3. Debt Restructuring:

   • Engage with creditors to restructure existing debts, possibly converting some liabilities into equity or extending repayment periods to reduce immediate cash outflows.

4. Business Plan Review:

   • Assess the current business model and market positioning to ensure sustainable revenue generation.
   • Consider strategic partnerships or additional investors to provide capital and commercial support.

5. Governance and Management:

   • Maintain strong oversight and transparent reporting to restore confidence among stakeholders.
   • Ensure directors actively monitor financial indicators and respond swiftly to emerging risks.

6. Monitor Financial Indicators:

   • Track key financial ratios monthly, especially liquidity ratios (current ratio, quick ratio) and gearing ratios, to detect early warning signs.
   • Use cash flow forecasts to anticipate funding needs and avoid surprises.

---