C AND I LIFTING LTD

Executive Summary

C AND I LIFTING LTD exhibits concerning financial symptoms including critically low cash reserves, near-zero net current assets, and sharply eroded equity, placing it in a fragile financial condition. Immediate focus on improving cash flow, building cash reserves, and controlling costs is essential to avoid liquidity crises and restore business health. Without corrective action, the company's financial outlook risks further deterioration.

C AND I LIFTING LTD - Analysis Report

Company Number: 13169948

Analysis Date: 2025-07-29 17:10 UTC

Financial Health Assessment of C AND I LIFTING LTD

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1. Financial Health Score: D

Explanation:
The company’s financial health score is D, indicating weak financial stability with signs of distress. The company shows extremely thin working capital, minimal net assets, and a worrying decline in liquidity. These symptoms suggest caution and the need for immediate financial attention.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Current Assets	15,604	11,895	Slight increase but still marginal; mostly debtors, very little cash.
Cash at Bank	301	785	Very low cash reserves, indicating poor cash liquidity — a critical vital sign.
Debtors	15,303	11,110	High proportion of current assets tied in receivables (slow cash conversion).
Current Liabilities	15,560	11,473	Current liabilities nearly equal to current assets, stress on meeting short-term obligations.
Net Current Assets	44	422	Working capital dangerously low, almost zero buffering capacity for operational needs.
Net Assets (Shareholders Funds)	44	422	Very low equity base, indicating fragile financial footing and little margin for error.
Share Capital	1	1	Minimal capital invested; typical for a small startup but insufficient as a buffer.
Profit & Loss Reserves	43	421	Accumulated profits retained are negligible and declining, indicating a loss or minimal profitability.

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3. Diagnosis: Financial Condition and Symptoms Analysis

• Symptoms of Financial Distress:
  The company’s current assets barely cover its current liabilities, with net current assets essentially flatlining at £44 in 2024, down from £422 in 2023. This “cash flow pulse” indicates the company is struggling to maintain liquidity, risking an inability to meet short-term debts promptly.

• Poor Cash Reserves:
  Cash on hand has dropped substantially from £785 to just £301. This “weak heartbeat” of liquidity is critically low for operating expenses, suggesting the company relies heavily on receivables collection to fund day-to-day activities.

• High Dependence on Debtors:
  Debtors form nearly the entire current asset base. This “illiquid asset” profile means the company’s financial health depends on timely collections, which if delayed, could cause cash flow “arrhythmias” or operational disruptions.

• Eroding Equity Position:
  Net assets have fallen sharply from £422 to £44, signaling that the company’s accumulated profits have been almost completely depleted. This is a “thin skin” that offers little protection against unexpected financial shocks or losses.

• Small Scale and Early Stage:
  Incorporated in 2021 with minimal share capital and a single director controlling 100% shares, the company seems to be in its infancy stage with limited financial muscle, typical for micro or small enterprises.

• No Audit and Limited Reporting:
  The company takes advantage of audit exemptions, which while common for small firms, means less external scrutiny and possibly limited financial controls.

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4. Recommendations: Steps to Improve Financial Wellness

• Improve Cash Flow Management:
  Focus on accelerating debtor collections and reducing payment terms to improve cash liquidity. Consider offering early payment discounts or enhancing credit control processes.

• Build Cash Reserves:
  Prioritize increasing cash holdings to create a healthy “cash buffer” that can absorb short-term shocks and help smooth operations.

• Review and Control Costs:
  Tighten expense management to prevent further erosion of profit reserves. Avoid discretionary spending until financial stability improves.

• Seek Additional Capital Injection:
  Consider bringing in more equity or short-term financing to strengthen the balance sheet and increase net assets, providing a financial cushion.

• Monitor Financial Metrics Regularly:
  Establish a routine “financial health check-up” to track key liquidity and solvency ratios, enabling early detection of deteriorating conditions.

• Explore Business Growth Opportunities:
  With a fragile financial base, focus on securing stable contracts and repeat business to build a consistent revenue stream.

• Professional Financial Advice:
  Engage with a financial advisor or business mentor to develop a tailored recovery and growth plan.

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