CHINYERESUCCESS LTD

Executive Summary

CHINYERESUCCESS LTD has shown encouraging signs of financial recovery after early years of distress, transitioning from negative to positive net assets and working capital. However, it remains financially fragile due to very low reserves and capital. Focused efforts on cash flow management, capital strengthening, and cost control are critical to ensure sustainable growth and avoid relapse into financial distress.

CHINYERESUCCESS LTD - Analysis Report

Company Number: 13130008

Analysis Date: 2025-07-20 12:15 UTC

Financial Health Assessment of CHINYERESUCCESS LTD

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1. Financial Health Score: C

Explanation:
CHINYERESUCCESS LTD shows signs of recovery from previous financial distress but remains in a fragile state typical of a micro-entity startup with limited resources. The latest figures demonstrate positive net current assets and shareholders’ funds, which is a good indication of improved liquidity and solvency compared to prior years. However, the absolute values are very low, indicating limited financial buffer. This warrants a cautious "C" grade—stable but vulnerable to external shocks or operational challenges.

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2. Key Vital Signs (Core Financial Metrics)

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	1,919	765	Slight increase in liquid and short-term assets—healthy trend.
Current Liabilities	1,627	1,401	Increase in short-term obligations, manageable relative to assets.
Net Current Assets	292	-636	Shift from negative working capital to positive—a critical improvement.
Net Assets (Equity)	292	-636	From negative to positive net worth—sign of financial recovery.
Share Capital	1	1	Very low share capital, typical of micro-entities but limits financial flexibility.
Average Employees	1	1	Small workforce, indicating limited operational scale and fixed costs.

Interpretation of Vital Signs:

• The company had symptoms of financial distress in 2022 and 2023, with negative net current assets and net liabilities indicating “illness” such as liquidity problems and undercapitalisation.
• The 2024 accounts show a “healthy pulse” with positive net current assets and net equity, suggesting the company has stabilized its liquidity and solvency.
• The modest working capital of £292 shows a thin margin for error; any unexpected expenses could cause liquidity strain.
• The limited share capital and micro size imply restricted capacity to absorb losses or invest for growth without external funding.

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3. Diagnosis (Overall Financial Condition)

CHINYERESUCCESS LTD experienced significant financial strain during its early years (2022 and 2023), reflected by negative net assets and working capital deficits. This is a common “symptom of distress” in new micro-entities struggling to balance cash inflows and outflows. However, the latest financial year shows a reversal with net current assets and equity turning positive. This indicates successful efforts to improve liquidity—perhaps through better receivables management, cost control, or additional funding.

Despite this improvement, the company remains in a vulnerable state. The financial “immune system” is weak, as reflected by very low net assets and limited cash buffers. The company’s survival depends on maintaining positive cash flow and avoiding unexpected liabilities. The single-employee structure and micro-entity status highlight a lean operation but also limited scalability and funding access.

There is no indication of audit requirement, which aligns with its micro classification, but this also means less external scrutiny. The director’s dual role (also company secretary) suggests a small management team, which can be both an asset (agility) and a risk (limited expertise/diversification).

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4. Recommendations (Prescriptions for Financial Wellness)

• Enhance Cash Reserves: Aim to increase cash holdings beyond current levels to build a buffer against short-term cash flow shocks. Consider short-term financing if necessary but avoid over-leveraging.
• Strengthen Working Capital Management: Monitor receivables and payables closely; negotiate better payment terms to maintain positive net current assets.
• Explore Capital Injection: Given the very low share capital, consider raising additional equity or securing a small loan to bolster financial resilience.
• Cost Control and Revenue Growth: With only one employee, control fixed costs tightly. Seek to expand client base or diversify service offerings in “Other human health activities” (SIC 86900) to improve revenue streams.
• Regular Financial Monitoring: Establish monthly or quarterly financial reviews to detect and address “symptoms” early, ensuring cash flow remains healthy.
• Consider Professional Advice: Engage business advisors or accountants for strategic planning and to prepare for scaling or funding opportunities.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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