Company Number: 14519654

Analysis Date: 2025-07-20 17:09 UTC

Financial Health Assessment for Aqua Pizza Limited

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1. Financial Health Score: D

Explanation:
Aqua Pizza Limited currently exhibits signs of financial distress, reflected in negative net current assets and net liabilities. The company’s financial position is fragile, with more short-term liabilities than assets and a negative equity base. This score indicates significant risk and the need for urgent remediation to restore financial health.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	1,353	Very low liquid assets, limiting immediate flexibility.
Current Liabilities	2,100	Short-term obligations exceed available current assets.
Net Current Assets	-747	Negative working capital signals liquidity stress (“symptom of distress”).
Total Assets Less Current Liabilities	-747	Indicates overall shortfall after meeting short-term debts.
Net Assets / Shareholders' Funds	-1,347	Negative equity implies accumulated losses or funding shortfall; “unhealthy balance sheet”.
Average Number of Employees	0	No staff expenses burden but also no operational scale.

Interpretation:

• Negative working capital is a critical symptom suggesting the company may struggle to meet its immediate financial obligations without external support.
• Net liabilities indicate the company’s balance sheet is “unhealthy,” with liabilities surpassing assets, a red flag for solvency risk.
• The company is a micro-entity, meaning filing requirements are minimal, but the financial position still demands attention.
• No employees suggest the company is either in a pre-operational phase or operating with minimal activity.

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3. Diagnosis

Aqua Pizza Limited is in the early stages of operation (incorporated Dec 2022) and is facing initial “growing pains” evidenced by a negative net asset position and negative working capital. The company’s financial “vital signs” reflect limited cash/resources to cover its short-term debts, which is a symptom of cash flow stress.

The director and sole shareholder holds 75-100% ownership and control, indicating decisions are centralized, which can be both a strength (quick decision-making) and a risk (limited external oversight).

The balance sheet shows the company has accrued liabilities and deferred income (£600), which might represent prepayments or obligations that need to be managed carefully.

Overall, the company is not yet financially stable but may be in a start-up phase investing in infrastructure or awaiting operational scale.

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4. Recommendations

To improve financial wellness and address the current symptoms of distress, consider the following:

• Enhance Cash Flow Management:
  Prioritize collection of receivables and manage payables to improve liquidity. Consider short-term financing options if necessary to cover immediate liabilities.

• Cost Control and Operational Efficiency:
  With no employees, the company should monitor expenses carefully to avoid unnecessary costs and optimize use of limited resources.

• Capital Injection:
  The negative equity position suggests the need for additional capital either from the owner or external investors to stabilize the balance sheet and fund operations.

• Regular Financial Monitoring:
  Implement monthly cash flow forecasts and financial reviews to detect early warning signs and adjust operations promptly.

• Strategic Business Planning:
  Clarify revenue generation plans and timelines to achieve profitability and positive net assets. Consider marketing, sales strategies, and scaling operations prudently.

• Engage Professional Advice:
  Seek advice from finance and business advisors to structure financing and growth strategies effectively.

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