BOLARIC LIMITED

Executive Summary

BOLARIC LIMITED's financial health shows signs of distress, with negative net assets and very limited liquidity, indicating potential solvency challenges. Immediate action to improve cash flow, reduce costs, and possibly inject capital is critical to restore financial stability and ensure the company’s ongoing viability.

BOLARIC LIMITED - Analysis Report

Company Number: 13485162

Analysis Date: 2025-07-29 20:52 UTC

Financial Health Assessment of BOLARIC LIMITED

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1. Financial Health Score: D

Explanation:
The company currently exhibits significant signs of financial distress. The net assets have turned negative in the latest financial year, indicating liabilities exceed assets. This "symptom" suggests weakened financial stability and potential solvency concerns despite the company being active and operational. With minimal current assets (only £1) versus current liabilities (£340), liquidity is critically low.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Current Assets	£1	Critically low; almost no liquid resources available.
Current Liabilities	£340	Short-term debts that must be met soon.
Net Current Assets	-£339	Negative working capital; company may struggle to pay immediate debts.
Net Assets (Shareholders' Funds)	-£339	Indicates insolvency on a balance sheet level; liabilities exceed assets.
Employees (Average)	1	Very small workforce consistent with micro-entity size.
Account Category	Micro	Small scale operation with limited filing requirements.

Interpretation of Vital Signs:
The negative net current assets and net assets are "red flags" or symptoms of financial distress, akin to a patient showing critical signs such as low blood pressure or irregular heartbeat. The company’s working capital position is unhealthy, meaning the business may struggle to meet short-term obligations without additional funding or asset sales.

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3. Diagnosis

Underlying Financial Health Condition:
BOLARIC LIMITED's financial condition is fragile. The micro-entity balance sheet reveals a deterioration from prior years where net assets were positive but marginal (£1 in 2021 and 2022). The drop to a negative net asset position of -£339 in 2023 signals that the company has consumed more resources than it has generated or retained, reflecting losses or increased liabilities.

This condition is symptomatic of poor liquidity and potential solvency issues. The company is likely experiencing cash flow constraints ("unhealthy cash flow") and may face challenges in sustaining operations if the trend continues. Given the small size and single director/shareholder control, there may be limited access to external capital infusion.

The fact that the company is still active and not in liquidation or administration suggests some operational continuity, but the financial "vital signs" warrant caution.

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4. Recommendations

To improve the financial wellness of BOLARIC LIMITED, the following actions are advised:

• Enhance Cash Flow Management:
  Prioritize collecting receivables faster and controlling payables to improve liquidity. Consider short-term financing options to cover working capital gaps.

• Cost Control and Expense Reduction:
  Review operational costs to eliminate unnecessary expenses and improve profitability, especially given the micro-company scale.

• Capital Injection:
  The sole shareholder/director might consider injecting fresh capital to restore positive net assets and improve solvency.

• Review Business Model and Revenue Streams:
  Evaluate the IT consultancy service offerings to boost revenues and ensure sustainable income.

• Monitor Financial Metrics Regularly:
  Implement monthly financial reviews to detect early signs of distress and adjust strategies promptly.

• Seek Professional Financial Advice:
  Engage with accountants or financial advisors for restructuring plans or debt negotiation if needed.

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