BIG DRIVER PW LIMITED

Executive Summary

Big Driver Pw Limited is currently experiencing financial distress characterized by negative working capital and shareholders’ funds, reflecting liquidity challenges and accumulated losses. Immediate actions to improve cash flow, renegotiate liabilities, and potentially inject capital are essential to restore financial health and ensure business sustainability.

BIG DRIVER PW LIMITED - Analysis Report

Company Number: 13731245

Analysis Date: 2025-07-29 14:23 UTC

Financial Health Assessment of Big Driver Pw Limited (as of 30 November 2023)

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1. Financial Health Score: D

Explanation:
The company’s financial position shows clear signs of distress with negative net current assets and negative net assets (shareholders’ funds) as of the latest year-end. This grade reflects a weak financial condition that requires urgent attention.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Current Assets	£10,002	Small asset base primarily consisting of debtors
Cash	£3	Extremely low cash reserves—symptom of unhealthy liquidity
Debtors	£9,999	High receivables but risk of delayed cash inflow
Current Liabilities	£14,888	Creditors and taxes exceeding current assets
Net Current Assets (Working Capital)	(£4,886)	Negative; signals inability to meet short-term obligations
Net Assets (Shareholders’ Funds)	(£4,886)	Negative equity; indicates accumulated losses
Average Number of Employees	1	Very small operation, possibly reliant on single key person

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3. Diagnosis

Big Driver Pw Limited exhibits “symptoms of financial distress”, most notably a negative working capital and negative shareholders’ equity as of the 2023 financial year. The company’s current liabilities (£14,888) exceed its current assets (£10,002), resulting in a net current liability position of (£4,886). This means the company does not have sufficient liquid or near-liquid assets to cover its short-term debts, posing a risk to operational continuity if cash inflows are delayed.

The cash balance of £3 is critically low, indicating poor cash flow health and limited immediate liquidity to meet obligations such as taxes and trade creditors. The large proportion of current assets tied up in debtors (£9,999) suggests cash may be tied in unpaid invoices, which could lead to liquidity challenges if collections are slow.

Comparing to previous years, the company has moved from a positive net asset position (£5,189 in 2021) to a negative one in 2023, indicating accumulated losses or increased liabilities over the period. The tax and social security creditor balance has also increased substantially (£9,918 in 2023 vs £4,807 in 2022), which may reflect unpaid tax liabilities, a red flag for financial management.

Given the company’s small size (single employee, micro category) and industry (freight transport by road), the negative equity and working capital position could indicate operational or market pressures, such as rising costs or delayed payments from customers.

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4. Recommendations

To improve financial wellness and stabilize the company’s “financial pulse,” I recommend the following:

• Improve Cash Flow Management:
  Actively pursue debtor collections to convert receivables into cash quickly. Consider offering incentives for early payment or stricter credit terms.

• Negotiate with Creditors:
  Engage with suppliers and tax authorities to possibly restructure or delay payments to ease immediate cash flow pressures.

• Review Cost Structure:
  Scrutinize operating expenses to identify areas where costs can be reduced without harming service delivery.

• Consider Capital Injection:
  Explore opportunities for additional equity funding or shareholder loans to restore positive net assets and provide working capital.

• Financial Monitoring:
  Implement regular cash flow forecasting and management reporting to detect early signs of distress and respond proactively.

• Seek Professional Advice:
  Given the negative equity and increasing tax liabilities, consulting with a financial advisor or insolvency practitioner may be prudent to explore all options including restructuring.

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