ATTOCK ROTI JUNCTION LTD

Executive Summary

ATTOCK ROTI JUNCTION LTD is in its first year and shows stable short-term liquidity with positive working capital but carries financial strain due to significant long-term liabilities and negative net assets. The company is at an early developmental stage with typical startup challenges requiring careful management of cash flow and liabilities. Strengthening equity and focusing on profitability will be critical to improving its financial health and ensuring sustainable growth.

ATTOCK ROTI JUNCTION LTD - Analysis Report

Company Number: 14458453

Analysis Date: 2025-07-29 12:49 UTC

Financial Health Assessment for ATTOCK ROTI JUNCTION LTD

---

1. Financial Health Score: C-

Explanation:
The company is in its first full financial year, showing a startup financial profile with limited operational history. The presence of tangible fixed assets indicates investment in business infrastructure, but the negative net assets and modest cash position point to early-stage financial strain. While current liabilities are low, a significant long-term creditor balance affects net worth. Overall, the score reflects a business in its infancy with symptoms of financial stress, requiring careful management.

---

2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£32,000	Investment in fixtures and fittings, showing operational setup.
Cash at Bank	£7,845	Limited cash reserves; somewhat healthy but tight liquidity.
Current Liabilities	£507	Very low short-term debts; healthy working capital management.
Net Current Assets	£7,338	Positive working capital; suggests short-term liquidity is stable.
Creditors (Long-term)	£40,000	Significant long-term liability; possible loan or finance arrangement.
Net Assets	-£662	Negative net worth; liabilities exceed assets marginally.
Share Capital	£100	Minimal equity base; typical for a new small business.
Profit & Loss Reserve	-£762	Accumulated losses or expenses exceeding income to date.

Interpretation of Vital Signs:

• The business has invested in physical assets (£32k) to support operations, which is a positive step toward revenue generation.
• Cash reserves are positive but limited, akin to a patient with a stable pulse but low energy reserves—enough for short-term survival but vulnerable to shocks.
• The low current liabilities and positive net current assets reflect good short-term health, indicating the company can meet immediate obligations.
• However, the significant long-term creditor balance (£40k) weighs heavily, causing negative net assets and indicating financial stress or reliance on external financing.
• Negative equity signals the business has used more resources than it has generated, a common symptom in early-stage companies but one that requires monitoring.

---

3. Diagnosis

ATTOCK ROTI JUNCTION LTD presents as a young enterprise in the take-away food sector, currently in a startup phase with initial capital investment primarily in tangible assets. The financial "vitals" show a stable short-term liquidity position with positive net current assets and minimal short-term debt, suggesting a "healthy heartbeat" from operational cash flow.

However, the "symptom" of negative net assets—caused mainly by a significant lender or creditor balance—indicates underlying financial stress. This could reflect startup loans or deferred payments that need careful management to avoid cash flow crises or solvency issues.

The accumulated loss reserve points to initial costs or operational losses, typical in a new business ramping up. The small equity base offers little buffer against financial shocks, making the company vulnerable to any unexpected expenses or downturns.

In medical terms, the company is a "newborn" with stable vital signs but a fragile constitution. It requires diligent "care" to build equity, manage liabilities, and improve profitability.

---

4. Recommendations

1. Enhance Equity Base:
   Consider injecting additional capital to strengthen shareholders' funds, improving the company's net assets and financial resilience.

2. Manage Long-Term Liabilities:
   Review terms of the £40,000 long-term creditors. Explore restructuring options to ease repayment pressure, lowering financial stress.

3. Improve Cash Flow Management:
   Maintain positive working capital by monitoring cash inflows and outflows closely, ensuring enough liquidity to meet short-term obligations without strain.

4. Focus on Profitability:
   Develop clear operational plans to increase revenues and control costs, addressing the negative retained earnings and moving towards profitability.

5. Regular Financial Monitoring:
   Establish monthly financial reviews to detect early warning signs of distress, enabling proactive interventions before issues escalate.

6. Consider Professional Advice:
   Engage with financial advisors or accountants experienced in small food service businesses to optimize financial strategy and compliance.

---