Company Number: 13516092

Analysis Date: 2025-07-20 17:27 UTC

Financial Health Assessment of ANDRE MATTIS PLUMBING SERVICES LTD

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1. Financial Health Score: D

Explanation:
The company shows concerning signs of financial distress, reflected in negative net current assets and net liabilities in the most recent financial year. While the business operated with positive net assets in previous years, the sharp deterioration by March 2024 indicates liquidity issues and potential solvency risks.

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2. Key Vital Signs

Metric	2024 (Latest)	Interpretation
Current Assets	£154	Very low liquid assets available to meet short-term obligations.
Current Liabilities	£305	Short-term debts exceeding current assets.
Net Current Assets	-£151	Negative working capital; signals liquidity strain.
Net Assets (Shareholders’ Funds)	-£151	Company is technically insolvent; liabilities exceed assets.
Employee Count	0	No employees; likely a sole trader setup.
Company Age	~3 years	Still in early stage but showing financial stress.

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3. Diagnosis: Underlying Financial Health Analysis

• Liquidity Crisis (Symptoms of Distress): The negative net current assets indicate the company lacks sufficient liquid resources to cover its immediate debts. This is akin to a patient with low blood pressure—critical for survival but currently inadequate to sustain daily operations comfortably.

• Solvency Risk: The negative net assets imply that the company’s total liabilities exceed its total assets. This is a serious symptom, suggesting the company is “underwater” financially, a state that can lead to insolvency if not addressed promptly.

• Cash Flow Concerns: Extremely low current assets (£154) compared to current liabilities (£305) suggest cash flow is tight or deteriorating, which threatens the company’s ability to pay suppliers, creditors, and potentially maintain business operations.

• No Staff Overhead: Zero employees could indicate very low operating expenses or reliance on the owner-director only, which may help reduce fixed costs but also limits growth and scalability.

• Early Stage Volatility: Given the company was incorporated in 2021, some initial financial instability could be expected. However, the recent decline from positive net assets (£140) to negative is a red flag rather than normal growing pains.

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4. Recommendations: Steps to Improve Financial Wellness

• Improve Cash Flow Management: Prioritize accelerating cash inflows (prompt invoicing, incentives for early payments) and negotiate extended payment terms with creditors to ease immediate liquidity pressure.

• Cost Control: Review all operating expenses rigorously. Since there are no employees, focus on reducing discretionary spend and fixed costs.

• Seek Additional Capital: Consider injecting personal funds or securing a small business loan to restore positive working capital and provide a buffer against short-term liabilities.

• Monitoring and Forecasting: Implement regular cash flow forecasts and financial monitoring to detect early warning signs and adjust operations proactively.

• Professional Advice: Engage a financial advisor or insolvency practitioner early to explore restructuring options before financial distress escalates to formal insolvency procedures.

• Business Development: Explore new customer acquisition or service diversification to increase revenue and rebuild positive equity.

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Executive Summary

ANDRE MATTIS PLUMBING SERVICES LTD currently faces significant financial strain, evidenced by negative net current assets and net liabilities as of March 2024. This “symptom of distress” points to liquidity and solvency challenges threatening the company’s operational viability. Prompt cash flow management, cost control, and capital infusion are critical to restoring financial health and avoiding severe outcomes.