BOBB MANAGEMENT LIMITED

Executive Summary

BOBB MANAGEMENT LIMITED is currently experiencing financial strain characterized by negative working capital and net liabilities, indicating liquidity and solvency challenges. While holding significant investment property assets, the company’s financial health is fragile and requires urgent action including improving cash flow, restructuring debt, and potentially injecting equity to stabilize and improve its outlook.

BOBB MANAGEMENT LIMITED - Analysis Report

Company Number: 14195038

Analysis Date: 2025-07-29 16:15 UTC

Financial Health Assessment for BOBB MANAGEMENT LIMITED (as of 30 June 2024)

---

1. Financial Health Score: D

Explanation:
BOBB MANAGEMENT LIMITED exhibits clear symptoms of financial distress, primarily characterized by persistent net liabilities (negative shareholders' funds) and negative working capital over the last three years. While the company holds investment property assets, these are outweighed by long-term debt and current liabilities. The company’s financial condition is fragile, with limited buffer to absorb shocks, earning a below-average grade.

---

2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Net Current Assets (Working Capital)	-146,553	Negative working capital indicates potential liquidity strain. The company’s short-term obligations exceed short-term assets, raising risk of cash shortfall.
Net Assets (Equity/Shareholders’ Funds)	-14,205	Negative net assets imply liabilities exceed assets, a classic symptom of financial distress or undercapitalization.
Investment Property (Fixed Assets)	302,255	Significant fixed asset base, but largely illiquid and possibly slow to convert to cash if needed.
Long-Term Debt (Creditors > 5 years)	169,907	Substantial long-term debt burden, contributing to negative net assets.
Share Capital	100	Minimal equity capital invested, limiting the company’s financial cushion.
Trend in Net Assets	Worsening (from -4,537 to -14,205)	Worsening equity position signals continued losses or increased liabilities without sufficient asset growth.

---

3. Diagnosis: What the Financial Data Reveals

BOBB MANAGEMENT LIMITED’s financial "vital signs" reveal a company under significant stress:

• Liquidity Challenge: The negative net current assets ("working capital") mean the company may struggle to meet immediate debts and operational expenses without additional funding or asset liquidation. This is akin to a patient showing symptoms of dehydration and electrolyte imbalance—short-term imbalance that threatens stability.

• Balance Sheet Weakness: Negative equity indicates the company’s liabilities exceed its total assets, a critical red flag suggesting insolvency risk if conditions worsen. This could be compared to a patient with a weakened immune system, increasingly vulnerable to external shocks.

• Asset Composition: The company’s main asset is investment property valued at £302k. While this represents a healthy fixed asset base, these assets are not highly liquid and their value depends on market conditions, which may not be easily converted to cash in a crisis.

• Dependence on Debt: Long-term loans of nearly £170k weigh heavily on the company, creating ongoing financial obligations that restrict operational flexibility and increase financial strain.

• No Audit and Small Company Filing: The abridged and unaudited accounts limit transparency but are normal for a company of this size. The director’s reliance on continued financial support and confidence in future profitability is noted but not yet reflected in the financials.

Overall, the company is in a precarious financial state, showing clear symptoms of distress but still operating (active status) and not currently in liquidation or administration.

---

4. Recommendations: Steps to Improve Financial Wellness

• Improve Working Capital:
  Seek to increase liquid assets or reduce current liabilities. This could involve negotiating longer payment terms with creditors, accelerating debtor collections, or injecting short-term funding. Think of this as replenishing the body's fluids to restore balance.

• Equity Injection:
  Consider capital injection from shareholders or new investors to strengthen the equity base, reduce reliance on debt, and improve the net asset position.

• Debt Restructuring:
  Engage creditors for renegotiation of terms on the long-term loan to reduce financial burden and improve cash flow. This is akin to reducing chronic stressors on a patient.

• Asset Management:
  Evaluate the investment property portfolio for potential sale or refinancing to unlock liquidity if needed. Careful timing is essential to avoid distress sale losses.

• Financial Monitoring and Forecasting:
  Implement robust cash flow forecasting and tighter financial controls to detect early signs of distress and respond proactively.

• Profitability Focus:
  As accounts do not show income or expenses, the company should ensure profitable trading going forward to rebuild reserves and equity.

---