Company Number: 12806796

Analysis Date: 2025-07-20 11:53 UTC

Financial Health Assessment for B-ACTIVE SERVICES LIMITED

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1. Financial Health Score: D

Explanation:
The company currently demonstrates signs of financial distress, with a significant deterioration in net assets and working capital from the prior year. The sharp decline in net assets from £7,001 in 2023 to £785 in 2024 and a negative net current assets position indicates liquidity challenges. This score reflects a weakened financial position requiring close attention.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£1,801	Significant decrease from £17,911 in 2023, suggesting asset disposals or write-downs.
Current Assets	Not reported in 2024	Absence of reported current assets in 2024 is concerning; likely low cash or receivables.
Current Liabilities	£1,016	Reduced substantially from £10,910 in 2023, possibly due to repayments or restructuring.
Net Current Assets	-£1,016	Negative figure indicates liabilities exceed short-term assets – a symptom of liquidity strain.
Total Net Assets	£785	Down sharply from £7,001 in 2023, showing erosion of equity base.
Share Capital	£100	Minimal, typical for a micro entity; does not provide significant buffer.
Employees	0	No staff employed; may indicate small scale or early-stage operations.

Interpretation:

• The company shows a "symptom of distress" in liquidity with negative net current assets, meaning it may struggle to meet short-term obligations comfortably.
• The decline in fixed assets and net assets suggests the company might be selling assets or writing down their value to manage cash flow or losses.
• The balance sheet shrinkage could indicate operational contraction, asset sales, or financial difficulties.

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3. Diagnosis

B-ACTIVE SERVICES LIMITED is currently in a precarious financial state. The dramatic drop in net assets and the negative working capital position are "red flags" signaling potential cash flow issues or business contraction. The company's fixed asset base has been substantially reduced, which may be a deliberate attempt to raise liquidity or reflect impairment losses.

The absence of employees suggests a micro-scale operation, possibly reliant on directors or contractors, limiting overhead but also growth potential. The company's financials do not disclose revenue or profit figures, limiting a full cash flow analysis, but the balance sheet trends alone indicate the business is under financial stress.

Overall, the "symptoms" point towards a company that might be struggling to sustain operations without additional capital injection, improved cash flow management, or cost reduction.

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4. Recommendations

1. Improve Liquidity Management:

   • Prioritize collection of receivables and management of payables to restore positive working capital.
   • Consider short-term financing or bridging loans to cover immediate obligations if cash flow is tight.

2. Asset Utilization Review:

   • Evaluate the fixed assets for potential sale or more efficient use to generate cash without impairing core operations.

3. Cost Control Measures:

   • Maintain or reduce operating costs given no employees, but ensure adequate investment in activities that generate revenue.

4. Financial Forecasting:

   • Implement rigorous cash flow forecasting and budgeting to anticipate liquidity shortfalls early.

5. Stakeholder Communication:

   • Directors should regularly review financial status and communicate with any creditors or investors to manage expectations and explore support.

6. Explore Growth Opportunities:

   • Investigate potential new business lines or markets to increase revenue and rebuild equity base.

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