Company Number: 13911157

Analysis Date: 2025-07-20 14:58 UTC

Financial Health Assessment for BALL TECHNOLOGY LTD

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1. Financial Health Score: D

Explanation:
The company shows worrying signs of financial distress with negative net assets (shareholders' funds) that have worsened significantly from -£71,479 in 2023 to -£257,559 in 2024. This indicates the company's liabilities exceed its assets by a substantial margin, a key symptom of financial strain. The large increase in long-term creditors (debt) from £199,970 to £360,000 is a concerning trend, suggesting increased borrowing or deferred obligations. Although current assets exceed current liabilities, providing a positive working capital, the overall financial position is weak and unsustainable without corrective action.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	5,019	3,553	Low asset base typical for micro-entity; slight increase indicates some investment in equipment.
Current Assets	106,852	127,695	Healthy cash and receivables but declining, possible tightening of liquidity.
Current Liabilities	9,430	2,757	Small short-term debts, manageable compared to current assets.
Net Current Assets (Working Capital)	97,422	124,938	Positive working capital signals ability to cover short-term debts, though declining.
Creditors > 1 Year (Long-Term Debt)	360,000	199,970	Significant and rapidly increasing long-term liabilities, a red flag for solvency.
Net Assets (Shareholders' Funds)	-257,559	-71,479	Negative and worsening net worth indicates the company owes more than it owns — a sign of distress.
Average Number of Employees	5	3	Growth in workforce may increase operational costs, needs to be matched by revenue growth.

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3. Diagnosis

BALL TECHNOLOGY LTD is currently in a financially distressed state. The company’s balance sheet reveals a critical symptom: negative net assets that have worsened over one year, primarily due to a sharp increase in long-term creditors (debt). This suggests reliance on external financing to sustain operations, potentially indicating cash flow problems or underperformance in revenue generation.

The healthy positive working capital (net current assets) is a bright spot, meaning the company can meet its short-term obligations. However, the large and growing long-term liabilities overshadow this. Negative shareholders’ funds imply that the owners’ equity is eroded, a condition often likened to a patient whose vital organs are weak despite stable blood pressure—here, liquidity is stable but the overall financial health is compromised.

The company’s increase in employees from 3 to 5 suggests expansion, but without strong financial footing, this could exacerbate cash flow challenges.

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4. Recommendations

To stabilize and improve financial wellness, BALL TECHNOLOGY LTD should consider the following actions:

• Debt Restructuring: Negotiate with creditors to restructure or refinance the long-term debt. This could involve extending repayment terms or converting debt into equity to reduce financial burden.
• Cash Flow Management: Tighten control on working capital. Increase efforts to collect receivables faster, manage inventory efficiently, and delay non-essential expenditures.
• Profitability Focus: Enhance revenue streams or reduce operational costs. Implement rigorous budgeting and forecasting to identify unprofitable areas.
• Equity Injection: Consider raising additional equity capital from existing shareholders or new investors to improve the net asset position.
• Operational Efficiency: Review staffing and overhead costs in line with revenue trends to avoid overextension.
• Regular Monitoring: Implement monthly financial reviews to track liquidity, debt levels, and profitability to detect early warning signs of distress.

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