CALLUNA SUSSEX LIMITED

Executive Summary

CALLUNA SUSSEX LIMITED maintains a solid asset base typical of a property letting company but shows significant liquidity challenges due to high current liabilities outpacing current assets. While the company is solvent overall, the negative working capital indicates cash flow strain that requires proactive management. Implementing liquidity improvements and debt restructuring will be crucial to avoid financial distress and support sustainable growth.

CALLUNA SUSSEX LIMITED - Analysis Report

Company Number: 13003396

Analysis Date: 2025-07-20 14:42 UTC

Financial Health Assessment for CALLUNA SUSSEX LIMITED

---

1. Financial Health Score: C

Explanation:
The company shows a modest positive net asset base (£55,508) but is burdened with significantly high current liabilities relative to current assets, resulting in large negative working capital. This indicates liquidity distress symptoms despite being asset-rich. The score reflects a stable but fragile position requiring active financial management.

---

2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	1,197,804	Strong long-term asset base, typical for property investment.
Current Assets	3,030	Very low short-term liquid assets to cover immediate expenses.
Current Liabilities	1,145,326	Very high short-term obligations, creating liquidity pressure.
Net Current Assets (Working Capital)	-1,142,296	Negative working capital signals potential cash flow distress.
Net Assets (Shareholder Funds)	55,508	Positive equity, showing value above liabilities.
Share Capital	100	Nominal paid-up capital, typical for micro companies.
Overdue Filings	No	Compliance is up to date, reducing regulatory risk.
Employees	0	No payroll burden, possibly reducing fixed costs.

Interpretation:

• Fixed assets represent investment in property, reflecting the company’s core business.
• Current assets are minimal and insufficient to cover current liabilities, a critical sign of cash flow "symptoms of distress."
• Despite negative working capital, net assets remain positive, indicating the company’s asset value exceeds its liabilities overall.
• No overdue filings or regulatory warnings are present, which is a positive compliance sign.

---

3. Diagnosis

The financial "vital signs" suggest that CALLUNA SUSSEX LIMITED is asset solvent but experiencing liquidity strain. The large current liabilities compared to very low current assets indicate the company might struggle to meet short-term obligations without converting fixed assets or obtaining additional financing. This condition resembles a patient with a "healthy heart" (strong asset base) but "poor circulation" (cash flow constraints).

The absence of employees suggests a lean operation, which may help control overheads, but the high current liabilities require ongoing monitoring. The company’s business model—property letting—typically involves sizeable fixed assets and debt financing, which can explain the balance sheet structure.

However, the increasing fixed assets and rising current liabilities year-over-year indicate growing leverage, which if unmanaged, could lead to distress signals such as delayed payments or creditor pressure.

---

4. Recommendations

To improve the financial wellness of CALLUNA SUSSEX LIMITED, consider the following targeted actions:

• Improve Liquidity Management:
  Explore ways to increase current assets, especially cash or receivables. This could involve negotiating longer payment terms with creditors or accelerating rent collection.

• Debt Restructuring:
  Evaluate current liabilities for possible refinancing or restructuring to spread out repayments and reduce immediate pressure on cash flow.

• Asset Utilisation:
  Assess whether fixed assets (property holdings) can be monetized or leveraged more effectively, e.g., refinancing mortgages at better rates or selling non-core assets.

• Financial Forecasting:
  Develop regular cash flow forecasts to anticipate liquidity needs and avoid surprises, akin to monitoring vital signs regularly.

• Cost Control:
  Maintain low operating costs by keeping the business lean, which appears to be in place given zero employees.

• Stakeholder Communication:
  Maintain transparency with lenders and shareholders about financial position and plans to mitigate any concerns that might arise from liquidity symptoms.

---