BIGGS AND HILL LIMITED

Executive Summary

BIGGS AND HILL LIMITED is currently experiencing financial distress with negative working capital and negative net assets, typical for a very early-stage start-up but signaling liquidity risks. Immediate action to improve cash flow and shore up equity is essential to avoid insolvency. With targeted cost control and revenue growth, the company can potentially recover its financial health.

BIGGS AND HILL LIMITED - Analysis Report

Company Number: 14581594

Analysis Date: 2025-07-29 19:37 UTC

Financial Health Assessment of BIGGS AND HILL LIMITED (As at 31 January 2024)

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1. Financial Health Score: D

Explanation:
This company shows concerning signs in its financial structure, with net liabilities rather than assets, indicating financial distress. The micro-entity classification and very early stage of operation (incorporated 2023) mean some poor figures could reflect start-up phase challenges. However, the negative net current assets and overall net liabilities suggest an unhealthy financial state needing immediate attention.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	47	Negligible long-term assets; typical for a start-up.
Current Assets	3,538	Limited liquid resources; low cash and receivables.
Current Liabilities	14,583	Substantial immediate obligations compared to assets.
Net Current Assets (Working Capital)	-11,045	Negative working capital signals liquidity risk ("cash flow distress").
Total Assets less Current Liabilities	-10,998	Negative, indicating total liabilities exceed assets.
Creditors > 1 Year	720	Small long-term debt, but adds to liabilities burden.
Net Assets / Shareholders’ Funds	-11,718	Negative equity indicates the company is insolvent on paper.
Employees	1	Very small workforce, consistent with micro-entity.

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3. Diagnosis: Financial Symptoms and Underlying Health

• Symptom: Negative Net Current Assets (Working Capital)
  The company’s current liabilities vastly exceed its current assets by £11,045. This "symptom" indicates potential difficulties in meeting short-term debts and operational expenses, analogous to a patient with insufficient blood supply to vital organs.

• Symptom: Negative Net Assets (Equity)
  The company’s total liabilities surpass total assets by £11,718. This is a critical "symptom" showing insolvency at balance sheet date. It’s akin to a patient whose vital organ functions are compromised—an urgent warning.

• Symptom: Micro-entity with Minimal Fixed Assets
  The company holds almost no long-term assets, typical for a start-up or service-based business. This is not necessarily a problem but means there is little collateral or buffer for financial distress.

• Symptom: Recent Incorporation and Start-up Phase
  Incorporated in early 2023, the company is still in infancy. Negative equity is common in early years due to initial investment and operating losses but must be monitored closely.

• Symptom: Small Workforce
  With only 1 employee, operational scale is very limited, which may constrain revenue generation and financial resilience.

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4. Prognosis: Future Financial Outlook

If current conditions persist, the company faces significant liquidity risk, potentially leading to insolvency or the need for restructuring. However, as a start-up, there is opportunity to improve through growth in sales, cost control, and capital injection. Timely management intervention is critical to reverse the financial "illness" and restore "healthy cash flow" and positive equity.

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5. Recommendations: Steps to Improve Financial Wellness

• Increase Working Capital:
  Seek immediate capital injection or credit facilities to cover current liabilities and improve liquidity. Think of this as stabilizing the patient's vital signs.

• Cost Management:
  Tighten control on expenses to reduce cash burn, especially given the thin asset base.

• Revenue Growth Strategy:
  Accelerate sales via the online retail channel (as indicated by SIC codes and website activity) to enhance cash inflows.

• Financial Monitoring:
  Implement regular cash flow forecasts and financial health tracking to catch early warning signs.

• Consider Professional Advice:
  Engage financial advisors or turnaround specialists to explore restructuring options if cash flow remains negative.

• Transparency and Compliance:
  Continue timely filings and maintain corporate governance to preserve stakeholder confidence.

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Executive Summary