FYORIN UK LIMITED

Executive Summary

FYORIN UK LIMITED is an early-stage software development company showing critical warning signs in its financial health, including deeply negative net current assets and shareholders’ funds. Immediate focus on cash flow management, capital injection, and cost control is essential to stabilize the business and avoid insolvency risks. With these interventions, the company can work towards financial recovery and sustainable growth.

FYORIN UK LIMITED - Analysis Report

Company Number: 14457842

Analysis Date: 2025-07-29 12:59 UTC

Financial Health Assessment Report for FYORIN UK LIMITED

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1. Financial Health Score: D

Explanation:
FYORIN UK LIMITED exhibits significant financial distress symptoms primarily due to a highly negative net working capital and negative shareholders’ equity. The company's current liabilities vastly exceed its current assets, indicating liquidity challenges and potential solvency risks. Given these vital signs, the financial health grade is "D" – poor but not yet in critical failure, as the company is still active and has some cash on hand.

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2. Key Vital Signs

Metric	31 Dec 2024	Interpretation
Current Assets	£550	Extremely low; insufficient to cover liabilities
Cash	£212	Minimal cash reserve; limits operational flexibility
Debtors	£338	Small amount tied up in receivables
Current Liabilities	£78,165	Very high short-term obligations
Net Current Assets	-£77,615	Negative working capital; "symptom of distress"
Shareholders’ Funds	-£77,615	Negative equity; business is "under the weather" financially
Share Premium	£2,499	Some capital injection, but overshadowed by losses
Retained Earnings (Loss)	-£80,115	Accumulated losses indicate ongoing financial challenges
Employee Count	3	Small team; limited human resources
Company Age	~2 years (Incorporated Nov 2022)	Early stage; financial instability common but concerning

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3. Diagnosis

Liquidity and Solvency:
FYORIN UK LIMITED is experiencing a critical liquidity shortage, with current liabilities exceeding current assets by over £77,000. This "negative net current assets" condition is akin to a patient with dangerously low blood pressure—there is insufficient "financial blood flow" (cash and liquid assets) to meet immediate obligations. The minimal cash balance (£212) further exacerbates the risk of operational disruption.

Capital Structure:
Negative shareholders’ funds of £77,615 reveal that the company has accumulated losses beyond its invested capital, placing it in a technically insolvent position on a balance sheet basis. This financial "ailment" implies that creditors hold a stronger claim than shareholders, affecting potential for new investment or borrowing.

Operational Performance:
The company's reported losses of £80,115 within a short operating period suggest that the business model may not yet be generating sustainable revenues or that costs are not adequately controlled. However, the filing indicates no audit, and no profit and loss statement was submitted, limiting insight into detailed operational drivers.

Industry Context:
Operating within the business and domestic software development sector (SIC 62012), FYORIN UK LIMITED faces a competitive market where early-stage companies often require significant investment before profitability. The small employee base and recent incorporation date highlight the company is in a developmental phase, which may explain some financial strain.

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4. Recommendations

Immediate Actions (Stabilization Phase):

• Cash Flow Management: Prioritize tightening working capital by accelerating debtor collections and negotiating extended payment terms with creditors to reduce immediate liquidity pressure.
• Capital Injection: Seek additional equity funding or shareholder loans to strengthen the balance sheet and restore positive net assets—a "blood transfusion" to stabilize financial health.
• Cost Control: Review operational expenses rigorously; reduce non-essential costs to slow loss accumulation.
• Financial Reporting: Implement more frequent internal financial reviews and consider an audit or at least a reviewed set of accounts to increase transparency and investor confidence.

Medium-Term Actions (Recovery Phase):

• Revenue Growth: Focus on increasing sales through targeted marketing, product development, or strategic partnerships to improve profitability.
• Debt Restructuring: Engage with creditors to restructure or refinance current liabilities on more favorable terms.
• Strategic Planning: Develop a clear business plan including break-even analysis and cash flow forecasts to guide decision-making.

Long-Term Actions (Sustainability Phase):

• Profitability Focus: Transition from loss-making to profit generation by optimizing pricing, product mix, and operational efficiency.
• Capital Structure Optimization: Aim to rebuild positive equity through retained earnings and prudent capital management.
• Governance Enhancements: Strengthen corporate governance, possibly expanding the board or advisory team to include financial expertise.

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Medical Analogy Summary:
FYORIN UK LIMITED currently presents with "symptoms of financial distress" such as negative working capital and equity, akin to a patient showing signs of organ strain and insufficient blood flow. Immediate intervention to restore "circulation" (cash flow) and "immune support" (capital) is critical to prevent the condition from worsening into insolvency or forced closure. With proper treatment and management, there is potential for recovery and stabilization.

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