Company Number: 13221483

Analysis Date: 2025-07-20 13:10 UTC

Financial Health Assessment for CRASTER HARBOUR LTD

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1. Financial Health Score: C

Explanation:
The company exhibits stability in maintaining positive net assets and zero liabilities, which are good signs of financial health. However, the sharp decline in current assets over the last year raises a cautionary flag. The limited scale of operations, absence of fixed assets, and no employees suggest a very lean business model with potential liquidity constraints. Overall, the situation indicates a moderately healthy but vulnerable financial condition.

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2. Key Vital Signs

Metric	Latest (2024)	Previous (2023)	Interpretation
Current Assets	£885	£5,086	Significant drop (~83%) — symptom of dwindling cash or receivables. Could signal cash flow stress.
Current Liabilities	£0	£0	No short-term debt — healthy sign, no immediate financial obligations.
Net Current Assets	£885	£5,086	Positive working capital but sharply reduced, indicating less buffer for day-to-day expenses.
Net Assets / Shareholders' Funds	£885	£5,086	Declining equity base; reflects reduced retained earnings or capital depletion.
Fixed Assets	£0	£0	No long-term investments or property; possibly asset-light model.

Additional Notes:

• No employees reported in either year, possibly indicating sole proprietorship or outsourcing.
• Small share capital (£100) suggests minimal equity investment.
• Micro-entity status implies simple financial structure and minimal filing requirements.

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3. Diagnosis

• Symptoms of Distress: The significant reduction in current assets from £5,086 to £885 over the last year is the most notable symptom. This sharp drop could indicate reduced cash reserves, lower receivables, or depletion of working capital, which can strain the company’s ability to cover operational costs or invest in growth.
• Healthy Signs: Absence of current or long-term liabilities means the company is not burdened by debt, lowering bankruptcy risk. Positive net assets indicate the company remains solvent.
• Underlying Condition: The business appears to be operating at a minimal scale without fixed assets or employees, which might limit growth potential. The variability in current assets could reflect irregular trading activity or seasonal cash flows typical in food service industries.
• Risk Factors: Low asset base and diminishing working capital reduce financial flexibility. If the downward trend in current assets continues, the company might face liquidity challenges. The lack of diversification in assets and revenue streams also increases vulnerability.

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4. Recommendations

• Strengthen Cash Reserves: Implement tighter cash flow management to stop depletion of current assets. Consider building a cash buffer to cover at least 3-6 months of operating expenses.
• Increase Working Capital: Explore opportunities to improve receivables collection, manage payables efficiently, or secure short-term financing if necessary to boost working capital.
• Asset Investment: Evaluate the benefits of acquiring fixed assets if it supports operational efficiency or revenue growth, but weigh against liquidity constraints.
• Review Business Model: Given the micro-scale and no employees, consider whether outsourcing or partnerships could improve operational capacity and profitability.
• Financial Monitoring: Establish regular financial reviews to monitor trends in assets, liabilities, and cash flow to detect early warning signs of distress.
• Growth Planning: Develop a strategic plan to increase turnover and diversify income sources, reducing dependence on volatile cash positions.
• Compliance and Reporting: Continue timely filing of accounts and confirmation statements to maintain compliance and credibility with stakeholders.

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