ALL4HEALTH LAB(UK) LTD

Executive Summary

ALL4HEALTH LAB(UK) LTD's financial condition has deteriorated significantly over the past year, with marked declines in liquidity and net assets indicating distress symptoms. Immediate focus on cash flow improvement, cost control, and potential capital infusion is essential to restore financial stability and prevent further decline.

ALL4HEALTH LAB(UK) LTD - Analysis Report

Company Number: 12520456

Analysis Date: 2025-07-20 17:39 UTC

Financial Health Assessment for ALL4HEALTH LAB(UK) LTD as of 31 March 2024

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1. Financial Health Score: D

Explanation:
The company shows significant signs of financial distress compared to previous years. Key liquidity measures have deteriorated markedly, net current assets have shrunk drastically, and cash reserves are minimal. These symptoms suggest a weakening financial condition that requires urgent attention.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	4,399	17,187	Sharp decline in liquid and short-term assets.
Cash	761	650	Low cash levels, barely increased, indicating tight liquidity.
Debtors	25	4,957	Dramatic drop in receivables – potential loss of revenue or write-offs.
Current Liabilities	500	185	Increase in short-term obligations, raising liquidity pressure.
Net Current Assets	3,899	17,002	Working capital severely contracted, signaling liquidity risk.
Net Assets (Equity)	3,899	17,002	Significant erosion of shareholder funds, indicating capital depletion.
Stock (Inventory)	3,613	11,580	Inventory levels reduced, possibly due to liquidation or poor sales.

• Liquidity: The company's "cash in hand" is very low (£761), barely covering current liabilities (£500), which indicates a fragile cash flow situation prone to distress.
• Working Capital: The net current assets have fallen from a healthy £17,002 to £3,899, a symptom of strained operational liquidity.
• Capital Base: Net assets have shrunk sharply from £17,002 to £3,899, reflecting a loss of retained earnings and possible operational losses.
• Receivables: Debtors fell drastically, which might indicate collection issues or a shrinking customer base.
• Inventory: The company has reduced stock levels, which may point to efforts to conserve cash or poor sales performance.

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3. Diagnosis

The financial "vital signs" reveal a company in weakened health. The steep decline in liquidity and working capital signals symptoms of financial distress akin to a patient whose blood pressure has dropped sharply—alerting to possible cash flow crises ahead. The erosion of net assets suggests accumulated losses or write-downs, indicating the company’s "immune system" against financial shocks is compromised.

Despite being operational and compliant with filing requirements, ALL4HEALTH LAB(UK) LTD’s financial condition has deteriorated significantly over the last year. The shrinking current assets and rising liabilities create a risk of insolvency if not addressed promptly. The low cash reserves and reduced receivables suggest operational challenges in revenue generation or collection efficiency.

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4. Recommendations

• Improve Cash Flow Management: Prioritize accelerating collections from customers and negotiate extended payment terms with suppliers to improve liquidity—akin to stabilizing a patient’s vital signs during crisis.
• Cost Control: Conduct a thorough review of operating expenses and overheads to reduce cash burn. Consider temporary cost reductions or restructuring.
• Inventory Optimisation: Evaluate stock management practices to prevent overstocking or stock obsolescence, freeing up working capital.
• Capital Injection: Explore options for fresh equity or short-term financing to bolster the capital base and provide breathing room for recovery.
• Financial Monitoring: Implement more frequent internal financial reviews to monitor liquidity metrics closely and detect early symptoms of distress.
• Strategic Review: Examine the business model and market positioning to identify underlying causes of revenue decline and address these through strategic initiatives.

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Executive Summary

ALL4HEALTH LAB(UK) LTD is exhibiting clear symptoms of financial distress with sharply declining liquidity and net assets. The company faces a fragile cash position and shrinking working capital, indicating a pressing need for improved cash flow management and potential capital support. Without timely intervention, the financial health could deteriorate further, risking solvency.