ANTHONY'S WORKSHOP LIMITED

Executive Summary

ANTHONY'S WORKSHOP LIMITED is a micro business showing early signs of recovery with a small operating profit, but it suffers from negative working capital and a weak balance sheet. Immediate focus on improving cash flow, increasing revenue, and potentially injecting capital is essential to restore financial health and ensure sustainability.

ANTHONY'S WORKSHOP LIMITED - Analysis Report

Company Number: 13880430

Analysis Date: 2025-07-29 19:12 UTC

Financial Health Assessment of ANTHONY'S WORKSHOP LIMITED

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1. Financial Health Score: D

Explanation: The company shows signs of financial distress with persistent negative net current assets and net liabilities over the last three reported years. Although there is a small operating profit in the latest year, the balance sheet weakness and ongoing working capital deficits indicate the business is struggling to maintain a healthy financial footing.

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2. Key Vital Signs

Metric	2024 (Latest)	Interpretation
Turnover	£11,263	Very low revenue, typical for a micro business in early stage
Gross Profit Margin	34.9% (3,931/11,263)	Modest margin indicating some control over cost of sales
Operating Profit	£901	Small positive operating profit, a good sign of operational improvement
Current Assets	£392	Very low current assets, mostly cash (£352)
Current Liabilities	£1,010	Current liabilities exceed current assets, signalling liquidity pressure
Net Current Assets	-£618	Negative working capital—"symptom of cash flow stress"
Net Assets / Shareholders' Funds	-£618	Negative net worth, indicating accumulated losses or funding gaps
Cash Balance	£352	Low cash reserves, limiting operational flexibility
Employees	1	Micro business scale, limited human resource capacity

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Liquidity & Working Capital: The company is showing a consistent negative net current asset position over three years (£-618k in 2024, £-1,439k in 2023, £-1,438k in 2022). This "symptom of distress" suggests a liquidity crunch, meaning the company may struggle to meet short-term obligations without additional cash injections or credit.

• Profitability: While the operating loss of £1,519 in 2023 indicates earlier difficulties, the positive operating profit of £901 in 2024 is a promising "sign of recovery." However, the absolute profit is small relative to liabilities, so profitability is fragile.

• Balance Sheet Strength: The company’s net assets remain negative, which is like having "a weak heart" financially. This points to accumulated losses or undercapitalization. Shareholders' funds are not healthy, limiting borrowing capacity.

• Scale & Growth: The turnover is very low (£11,263 in 2024), typical for a startup or micro enterprise. The business is very small, with only 1 employee, limiting its ability to scale quickly or absorb shocks.

• Owner Control: The sole director and 100% shareholder is Mr. Graham Howard Wickham, suggesting decisions are centralized but possibly dependent on his personal commitment and resources.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Cash Flow Management: Immediate focus on strengthening cash reserves is critical. Consider negotiating better payment terms with suppliers, accelerating debtor collections, or arranging short-term financing to ease liquidity pressure.

• Increase Revenue: Explore opportunities to increase turnover through marketing, service expansion, or partnerships. Even small increases in sales volume can improve margins and cash flow.

• Cost Control: Continue to monitor and reduce administrative and operating expenses where possible to improve profitability without compromising service quality.

• Capital Injection: Given the negative net assets, an equity injection or loan from the owner or investors may be required to stabilize the balance sheet and support growth initiatives.

• Financial Monitoring: Implement regular financial reviews (monthly or quarterly) to identify and address emerging symptoms of distress early.

• Strategic Planning: Develop a clear growth and sustainability plan, including contingency measures for downturns, to provide direction and reassure any stakeholders or lenders.

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Medical Analogy Summary

ANTHONY'S WORKSHOP LIMITED currently shows symptoms of financial distress such as a "weak pulse" in liquidity (negative working capital) and "low blood pressure" in profitability (small operating profit). While the "heart" (business operations) is showing some signs of improvement, the overall "body" (balance sheet) remains fragile and needs strengthening through increased capital and better cash flow management to avoid "financial collapse."

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