Company Number: 12553992

Analysis Date: 2025-07-20 13:02 UTC

Financial Health Assessment for Beyond The Ultimate Store Limited

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1. Financial Health Score: D

Explanation:
The company shows persistent negative net assets and worsening working capital deficits over the last several years. These "symptoms" indicate financial distress and an imbalance between liabilities and assets. While the company remains active and compliant with filing deadlines, the overall financial "vital signs" suggest it is in a fragile state with a high risk profile.

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2. Key Vital Signs (Core Metrics and Interpretation):

Metric	2024 (£)	Interpretation
Fixed Assets	5,052	Modest long-term asset base.
Current Assets	22,924	Short-term resources available.
Current Liabilities	74,796	Significant short-term obligations.
Net Current Assets (Working Capital)	-51,872	Negative; company cannot cover short-term debts with current assets. Indicates liquidity stress.
Total Assets less Current Liabilities	-46,820	Negative net asset position; company owes more than it owns.
Net Assets (Shareholders Funds)	-48,120	Negative equity; accumulated losses exceed invested capital.

• Trend: The net liabilities and working capital deficits have worsened from a net asset position of £3,318 in 2020 to a net liability of £48,120 in 2024. This shows a progressive deterioration in financial health.
• Liquidity: The large negative working capital is a critical symptom of cash flow strain and inability to meet immediate obligations.
• Capital Base: Share capital is minimal (£100), and accumulated losses have eroded shareholder equity.
• Compliance: The company is current on filings and not in liquidation or administration, which is a positive sign but may only reflect formal compliance rather than financial robustness.

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3. Diagnosis (What the Financial Data Reveals):

The company exhibits classic symptoms of financial distress:

• Liquidity Crisis: The negative working capital of over £50k indicates the company struggles to pay its short-term debts. This is akin to a patient with insufficient blood flow — the business lacks the "cash flow circulation" needed to sustain daily operations.
• Capital Erosion: Negative net assets (shareholders’ funds) indicate that the company’s liabilities surpass its assets, suggesting accumulated losses. This is similar to a chronic illness eroding the patient’s reserves.
• Stagnant Asset Base: Fixed assets have decreased slightly over time, suggesting no significant investment in growth or new capacity.
• Small Scale Operation: The company operates on a micro scale with only one employee, which may limit revenue and operational capacity.
• Industry Risks: Operating in retail sale of sports goods and related items can be competitive and seasonal, requiring strong cash management.

Overall, the company is in a precarious financial position, with ongoing risks to its viability if current trends persist. The financial "symptoms" require immediate intervention to prevent potential insolvency.

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4. Recommendations (Actions to Improve Financial Wellness):

1. Immediate Cash Flow Management:

   • Prioritize reducing current liabilities through negotiations with creditors for extended payment terms.
   • Explore short-term financing or overdraft facilities to cover liquidity gaps.
   • Strictly manage inventory and receivables to convert assets into cash faster.

2. Cost Control and Operational Efficiency:

   • Review all operating expenses for potential cuts or efficiencies.
   • Consider scaling operations to match cash flow capabilities.

3. Capital Injection:

   • Seek additional equity investment or shareholder loans to shore up net assets.
   • Consider restructuring share capital if feasible to improve balance sheet health.

4. Strategic Review:

   • Evaluate business strategy and market positioning to identify growth opportunities or diversification.
   • Potentially explore partnerships or collaborations to increase sales and market reach.

5. Professional Advisory:

   • Engage with a turnaround specialist or financial advisor to develop a detailed recovery plan.
   • Regularly monitor key financial metrics as "vital signs" to detect early warning signals.

6. Regulatory Compliance:

   • Continue timely filing of accounts and confirmation statements to maintain good standing.

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