ARUN TIMBER DOCKS LTD

Executive Summary

ARUN TIMBER DOCKS LTD exhibits significant financial stress characterized by negative net assets and severe liquidity shortages despite holding substantial fixed assets. While compliance with filings is maintained, the company faces urgent cash flow challenges requiring capital infusion or debt restructuring to avoid insolvency. Proactive management of working capital and asset valuation is essential to stabilize the financial condition.

ARUN TIMBER DOCKS LTD - Analysis Report

Company Number: 13275489

Analysis Date: 2025-07-20 18:24 UTC

Financial Health Assessment for ARUN TIMBER DOCKS LTD

---

1. Financial Health Score: Grade D

Explanation:
ARUN TIMBER DOCKS LTD shows signs of significant financial stress despite being active and compliant with filings. The company's net liabilities position, negative shareholder funds, and minimal current assets indicate a fragile financial condition. While it is not yet in formal insolvency, the balance sheet reveals symptoms akin to a patient with critical deficiencies requiring urgent intervention.

---

2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	252,000	The company holds substantial long-term assets, likely property or equipment related to its real estate business. This is a stable "organ" in the financial body.
Current Assets	1	Extremely low liquid assets ("healthy cash flow" is absent), indicating inability to meet short-term demands.
Current Liabilities	252,000	High short-term debts almost equal to fixed assets, causing liquidity strain.
Net Current Assets	-251,999	Severe working capital deficiency ("symptom of distress"), indicating inability to cover immediate obligations.
Accruals and Deferred Income	-1,200	Additional liabilities not yet paid, adding to financial pressure.
Net Assets (Equity)	-1,199	Negative net worth ("financial anemia"), meaning liabilities exceed assets slightly.
Share Capital	1	Minimal initial capital, indicating limited equity buffer.
Employees	NIL	No employees, suggesting a very small or inactive operational structure.

---

3. Diagnosis

Overall Financial Condition:
ARUN TIMBER DOCKS LTD’s financial health resembles a patient with severe liquidity issues and negative net equity. The company’s fixed assets are intact, but current liabilities nearly match these assets, with virtually no cash or liquid resources to meet short-term obligations. Negative net assets signal that the company’s obligations exceed its resources, a classic symptom of financial distress.

The absence of employees and minimal share capital suggest a micro-entity with limited operational scale, possibly in a holding or asset-owning capacity rather than active trading. The balance sheet’s stability is heavily dependent on the fixed assets’ value holding firm. However, the working capital deficiency warns of potential cash flow problems if liabilities come due unexpectedly.

The company has no overdue filings and maintains compliance, which is a positive sign—akin to a patient regularly attending checkups despite underlying health issues. However, the financial indicators show risk of insolvency if the current pattern persists without improvement in liquidity or capital structure.

---

4. Recommendations

To improve the company's financial wellness and avoid deterioration into formal insolvency, consider the following steps:

• Enhance Liquidity:
  Infuse working capital through equity injection or short-term financing to address immediate liquidity shortages. This is like administering fluids to a dehydrated patient.

• Review Fixed Asset Valuation:
  Verify the recoverable value of fixed assets (£252,000) to ensure they can be monetized or leveraged if cash demands arise.

• Reduce Current Liabilities:
  Negotiate with creditors for extended payment terms or restructuring of debts to ease short-term pressure.

• Operational Review:
  Assess whether the company can generate revenue or cash flow from its assets. If dormant, consider strategic options such as asset sale or restructuring.

• Monitor Financial Reporting:
  Continue timely filings and maintain transparent reporting to spot early warning signs and demonstrate governance.

• Seek Professional Advice:
  Engage financial or insolvency advisors if cash flow worsens to explore turnaround strategies before conditions become critical.

---

Executive Summary