EXALLT LTD

Executive Summary

EXALLT LTD is currently in a poor financial condition characterized by negative working capital and net liabilities over multiple years, indicating liquidity and solvency challenges. Immediate actions to improve cash flow, increase equity, and control costs are essential to restore financial health and ensure ongoing viability.

EXALLT LTD - Analysis Report

Company Number: 13713129

Analysis Date: 2025-07-20 17:39 UTC

Financial Health Assessment of EXALLT LTD

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1. Financial Health Score: D (Poor)

Explanation:
EXALLT LTD is currently in a financially distressed state, as evidenced by persistent net liabilities and negative working capital over the past four years. This grade reflects a company struggling to maintain financial stability, indicating symptoms of ongoing liquidity stress and an undercapitalized position.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	11,484	Cash and short-term resources available
Current Liabilities	18,633	Debts and obligations due within one year
Net Current Assets (Working Capital)	-7,149	Negative working capital: liabilities exceed assets, indicating liquidity issues
Net Assets (Shareholders’ Funds)	-7,149	Total liabilities exceed total assets, showing an equity deficit
Share Capital	2.00	Minimal paid-in capital, indicating limited equity buffer
Number of Employees	1	Micro-entity size, small operational scale

Interpretation:

• Negative working capital is a critical symptom of financial distress, suggesting the company may struggle to meet short-term obligations without additional funding.
• Net liabilities mean the company’s total debts and obligations exceed the value of its assets, a condition akin to an "underweight" balance sheet that weakens financial resilience.
• The minimal share capital combined with negative reserves implies limited shareholder funds to absorb losses or invest in growth.
• The company has been consistently operating with these negative net asset figures over multiple years, indicating a chronic condition rather than a temporary setback.

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3. Diagnosis

EXALLT LTD is exhibiting clear symptoms of financial distress. The persistent negative net current assets and net liabilities over four consecutive years indicate a lack of sufficient liquidity and solvency. The company’s "balance sheet health" is compromised, similar to a patient with a chronic illness that has not been effectively treated.

The business operates in the joinery installation sector, a trade that can be cyclical and capital-intensive. With only one employee and minimal equity, the company appears to be undercapitalized and may be reliant on external financing or director support to continue operations.

The absence of profit and loss data in the filing limits a complete profitability analysis, but the negative net asset position suggests cumulative losses retained in the business (negative reserves).

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4. Recommendations

To improve financial wellness and restore health to EXALLT LTD’s balance sheet, the following actions are advised:

• Improve Liquidity: Consider increasing cash reserves through improved cash flow management, collection of receivables, or seeking short-term financing to cover current liabilities and avoid insolvency risks.

• Capital Injection: Introduce additional equity capital or shareholder loans to strengthen the company’s net asset position and provide a buffer against future losses.

• Cost Control: Review operational expenses carefully, given the micro scale of the business, to reduce overheads and improve profitability.

• Profitability Focus: Develop strategies to increase revenue or improve margins in the joinery installation activity to reverse cumulative losses and build retained earnings.

• Financial Monitoring: Implement regular financial reporting and forecasting to detect early signs of distress and enable timely management intervention.

• Professional Advice: Engage with a financial advisor or turnaround specialist to explore restructuring options if liabilities continue to exceed assets.

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