Company Number: 14935345

Analysis Date: 2025-07-29 16:03 UTC

Financial Health Assessment Report
Company: ANIMA HERBA LTD
Assessment Date: Post 30 June 2024 (last financial year end)

---

1. Financial Health Score: Grade D (Distressed)

Explanation:
ANIMA HERBA LTD shows clear signs of financial distress with net current liabilities significantly exceeding current assets. The company’s balance sheet reveals a negative net asset position of £1,409, indicating it owes more than it owns in liquid assets. This negative equity position reflects a business that is undercapitalized or has accumulated losses since inception. Given its micro-entity status and early stage (incorporated June 2023), this financial snapshot suggests the company is struggling to maintain healthy liquidity and financial stability.

---

2. Key Vital Signs and Interpretation

Vital Sign	Value	Interpretation
Current Assets	£104	Very low immediate liquid resources
Current Liabilities	£1,513	Short-term obligations exceed assets
Net Current Assets	-£1,409	Negative working capital, a symptom of cash flow stress
Net Assets (Equity)	-£1,409	Negative equity - company liabilities exceed assets
Shareholders’ Funds	-£1,409	Reflects accumulated losses or undercapitalization
Number of Employees	1	Very small operational scale, limited staff

What these indicate:

• Negative working capital ("symptom of distress") means the company may have difficulty meeting short-term obligations as they fall due.
• Negative net assets ("diagnostic sign of insolvency risk") suggests the company is technically insolvent on a balance sheet basis, although this may be less critical for a newly incorporated micro-entity in early trading stages.
• The very small asset base and low cash equivalents imply limited financial buffer to absorb shocks or invest in growth.

---

3. Diagnosis: Overall Financial Condition

ANIMA HERBA LTD is currently in a precarious financial position. The negative net asset base and working capital deficit are warning signs of liquidity challenges and potential solvency issues if the current financial trajectory continues. The company’s limited scale (1 employee, micro-entity classification) and recent incorporation suggest it is in the start-up phase, which often involves initial losses and negative equity due to upfront costs and limited revenue.

However, the absence of overdue filings and up-to-date statutory compliance is a positive sign of good governance and operational discipline. The directors appear actively engaged, but the financial "vital signs" reflect the company is not yet in a healthy financial state.

---

4. Recommendations for Financial Wellness Improvement

• Immediate Cash Flow Management:
  Address the negative working capital by raising short-term funds or negotiating extended payment terms with creditors. Healthy cash flow is critical to avoid insolvency risks.

• Capital Injection:
  Consider equity financing or director loans to improve net asset position and provide a financial cushion.

• Cost Control:
  Review and reduce operating expenses to preserve cash, especially given the minimal current assets.

• Revenue Growth Focus:
  Accelerate sales through the company’s retail channels (mail order, internet, markets) to improve turnover and move towards profitability.

• Financial Monitoring:
  Implement regular cash flow forecasting and budget reviews to detect financial stress early and respond proactively.

• Director Engagement:
  Given one director resigned June 2025, ensure remaining leadership has clear roles and capabilities to steer financial recovery.

---