BERKELEY DELIGHT LIMITED

Executive Summary

Berkeley Delight Limited is a newly established micro-entity with early-stage financial challenges, notably negative working capital and shareholders' funds indicating liquidity strain and undercapitalization. Immediate focus on cash flow management, cost control, and potential capital injection is critical to improve its financial health and ensure sustainable operations in the competitive take-away food sector.

BERKELEY DELIGHT LIMITED - Analysis Report

Company Number: 14988035

Analysis Date: 2025-07-29 18:51 UTC

Financial Health Score: D

Berkeley Delight Limited is graded D, indicating a weak financial condition with clear signs of distress. The company is newly incorporated and currently operating at a net current liability position, reflecting challenges in liquidity and working capital management.

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Key Vital Signs

Metric	Value	Interpretation
Current Assets	£4,247	Limited cash or receivables available
Current Liabilities	£5,240	Short-term debts slightly exceed assets
Net Current Assets (Working Capital)	-£993	Negative working capital, indicates liquidity strain
Total Assets Less Current Liabilities	-£993	Negative net assets, reflects accumulated losses or undercapitalization
Shareholders' Funds	-£993	Equity is negative, company is technically insolvent on balance sheet
Average Number of Employees	3	Small workforce consistent with micro entity status

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Symptoms Analysis

The negative net current assets of -£993 indicate that the company does not currently have enough liquid assets to cover its short-term obligations, a symptom akin to a patient having insufficient blood pressure to sustain vital organ function. The negative shareholders' funds suggest that the company has either incurred start-up losses or capital contributions have not yet offset liabilities, pointing towards undercapitalization.

As a micro-entity, Berkeley Delight Limited’s financial statements are unaudited and limited in scope, but the data shows the business is in its infancy (incorporated July 2023) and has yet to build a financial buffer or profitability. The small number of employees reflects a lean operation, typical for a start-up in the take-away food sector.

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Diagnosis

Berkeley Delight Limited is in the early stages of operation and faces liquidity challenges as evidenced by its negative working capital and shareholders’ funds. This is common in start-up businesses where initial expenses and payables exceed cash inflows. The financial "vitals" show signs of distress that, if unaddressed, could lead to solvency problems.

However, the company is currently active and has complied with filing requirements, which is a positive compliance sign. The director, Mr. Abdul Nasir, holds 100% control, centralizing decision-making, which can be beneficial for swift operational adjustments.

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Prognosis

Without immediate improvement in cash flow or capital injection, the company risks further financial strain. Positive prognosis depends on:

• Improving revenue generation in the take-away food sector
• Effective management of payables and receivables to improve liquidity
• Potential additional equity contributions or financing to restore positive net assets

If these measures are taken promptly, the company can transition from its current fragile state to a healthier financial position.

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Recommendations

1. Enhance Cash Flow Management: Monitor daily cash inflows and outflows to avoid liquidity shortfalls. Prioritize collecting receivables and negotiate extended payment terms with creditors.
2. Capital Injection: Consider additional equity funding or short-term financing to bolster working capital and provide a safety net.
3. Cost Control: Review operating expenses and staffing levels to align costs with current revenue streams.
4. Financial Planning: Develop a detailed budget and cash flow forecast to anticipate future funding needs and operational costs.
5. Regular Financial Monitoring: Establish monthly financial review sessions to detect and address symptoms of distress early.
6. Seek Professional Advice: Engage with financial advisors or accountants for tailored advice on tax planning, grants, or funding opportunities specific to the food service industry.

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