BEING REAL WORKPLACE MENTAL HEALTH SOLUTIONS LIMITED

Executive Summary

Being Real Workplace Mental Health Solutions Limited is currently facing financial challenges, evidenced by negative net assets and a substantial working capital deficit. The company relies heavily on director funding to sustain operations, which is not a long-term solution. Immediate focus on improving cash flow, reducing liabilities, and increasing capital investment is critical to restore financial health and ensure business sustainability.

BEING REAL WORKPLACE MENTAL HEALTH SOLUTIONS LIMITED - Analysis Report

Company Number: 14553964

Analysis Date: 2025-07-29 19:36 UTC

Financial Health Assessment: Being Real Workplace Mental Health Solutions Limited

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1. Financial Health Score: D

Explanation: The company currently exhibits signs of financial distress manifested by negative net assets and net current liabilities, indicating that its short-term debts exceed its short-term assets and overall liabilities surpass total assets. This score reflects a need for urgent attention to improve liquidity and solvency.

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2. Key Vital Signs

Metric	2024 Value	2023 Value	Interpretation
Fixed Assets	£774	£1,029	Very low investment in long-term assets, typical for a micro company.
Current Assets	£2,342	£3,517	Shrinking working capital resources, a warning sign of deteriorating liquidity.
Current Liabilities	£9,108	£4,047	Significant increase in short-term obligations, creating liquidity strain.
Net Current Assets (Working Capital)	-£6,766	-£530	Negative working capital worsened substantially, symptom of cash flow stress.
Net Assets (Shareholders' Equity)	-£5,992	£499	Shift from positive equity to negative, indicating accumulated losses or debt financing.
Director’s Loans (Net Receivable)	£8,820 (2024)	£(1,788) (2023)	Director has advanced funds to the company, suggesting reliance on insider financing.

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3. Diagnosis

The company is showing symptoms of financial distress, primarily characterized by:

• Negative Net Assets: The company’s liabilities now exceed its assets by nearly £6,000, signaling an impaired capital base.
• Severely Negative Working Capital: Current liabilities have more than doubled, while current assets have fallen, indicating a lack of "healthy cash flow" to meet short-term obligations.
• Dependence on Director Financing: The director’s loan account has swung from a liability to a receivable position, reflecting personal funds injected to sustain operations. While this is a temporary bandage, it is not a sustainable solution.
• Micro-Entity Scale: The company remains small with one employee and minimal fixed assets, typical for a startup or early-stage business, but it must address liquidity issues quickly.
• No Audit and Simplified Reporting: Accounts are prepared under micro-entity rules with no audit, so while this reduces compliance costs, it may also limit external assurance on financial reliability.

Overall, the company’s financial condition resembles a patient with a weakening heart — the company’s liquidity and capital reserves are inadequate to support ongoing operations without intervention. Prompt steps are needed to stabilize finances and improve cash inflows.

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4. Recommendations

• Improve Cash Flow Management
  Prioritize collecting receivables and managing payables to reduce the liquidity gap. Explore short-term financing options if necessary but cautiously to avoid excessive debt.

• Increase Revenue or Capital Injection
  The company should focus on boosting sales or securing additional capital from investors or the director to restore positive net assets and working capital. Consider revising pricing, marketing strategies, or business model to improve profitability.

• Reduce Costs and Liabilities
  Conduct a cost review to eliminate non-essential expenses. Negotiate with creditors for extended payment terms to ease immediate cash demands.

• Monitor Director Loans and Formalize Agreements
  Since director advances are significant, ensure these are documented formally to avoid future disputes and to clarify repayment terms.

• Regular Financial Monitoring
  Establish monthly financial reviews to track cash flow, assets, and liabilities proactively, enabling early detection of distress symptoms.

• Seek Professional Advice
  Consulting with financial advisors or restructuring specialists can help develop a sustainable turnaround plan and improve financial health.

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Executive Summary