Company Number: 14554690

Analysis Date: 2025-07-19 13:05 UTC

Financial Health Assessment: Crescent Moon Homes Limited

---

1. Financial Health Score: D

Explanation:
The company shows signs of financial distress, notably negative net assets indicating liabilities exceed assets. While current assets are substantial, current liabilities and long-term creditors create a liquidity strain. The overall financial position suggests caution with limited cushion to absorb shocks.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	1,024,033	Healthy level of liquid and short-term assets, indicating potential to cover immediate obligations.
Current Liabilities	1,095,965	Slightly higher than current assets, signaling potential short-term liquidity pressure.
Net Current Assets	-71,932*	Negative working capital (Current Assets - Current Liabilities), suggests strained operational cash flow.
Creditors (Long-term)	1,095,965	Significant debt due beyond one year, increasing long-term financial obligations.
Net Assets (Shareholders’ Funds)	-72,652	Negative equity, indicating the company owes more than it owns; a symptom of financial distress.
Number of Employees	3	Small workforce consistent with micro-entity classification.

*Note: The reported Net Current Assets in accounts is £1,024,033 but from the figures given, current liabilities exceed current assets, so this appears to be a reporting discrepancy; the narrative clarifies net liabilities.

---

3. Diagnosis

The company is in a fragile financial state, with negative net assets indicating that total liabilities exceed total assets. This is akin to a patient whose vital signs show an underlying chronic condition — the company is "under the weather" financially. The presence of significant creditors and liabilities beyond one year exacerbates the strain, comparable to a patient with ongoing health burdens.

The liquidity position is concerning as current liabilities slightly outstrip current assets, indicating a symptom of cash flow distress — the company may struggle to meet short-term obligations without additional financing or asset sales.

Given the company’s micro-entity status and recent incorporation (Dec 2022), it may be in the early growth phase, but the current financial snapshot suggests it is not yet financially stable or profitable.

The resignation of multiple directors within 2024-2025 could reflect internal challenges or restructuring, which may impact governance and strategic direction.

---

4. Recommendations

To improve financial wellness, Crescent Moon Homes Limited should consider the following actions:

• Strengthen Working Capital:
  Improve liquidity by accelerating receivables, managing payables carefully, and controlling inventory levels to restore positive net current assets. Think of this as improving the company’s "blood flow" to vital organs.

• Restructure Debt:
  Engage with creditors to renegotiate terms or extend repayment schedules to ease pressure on cash flow. Long-term creditor management is like managing chronic conditions — proactive adjustments are needed.

• Increase Equity or Capital Injection:
  Address negative net assets by injecting fresh equity or retaining earnings. This replenishes the "body’s reserves" and strengthens financial resilience.

• Monitor Cash Flow Closely:
  Implement robust cash flow forecasting and budgeting to detect early warning signs of distress and plan accordingly.

• Review Governance:
  Address director turnover and ensure stable leadership to maintain strategic focus and accountability.

• Explore Growth Opportunities Carefully:
  Investments should be cautious and aligned with improving profitability and sustainable cash generation.

---