GENNA TUTORIALS COLLECTION LTD

Executive Summary

Genna Tutorials Collection Ltd demonstrates a fair financial condition but is showing early signs of liquidity stress and equity erosion. Immediate focus on cash flow improvement and cost control is critical to prevent further decline. With timely management actions, the company can stabilize and build a healthier financial foundation for future growth.

GENNA TUTORIALS COLLECTION LTD - Analysis Report

Company Number: 13710530

Analysis Date: 2025-07-29 20:23 UTC

Financial Health Assessment for Genna Tutorials Collection Ltd

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1. Financial Health Score: C (Fair Condition)

Explanation:
The company shows signs of operational viability but has experienced a decline in liquidity and net asset value over the last financial year. While still solvent, there are emerging symptoms of financial stress, notably a negative working capital position and a significant reduction in net assets, which warrant attention to prevent deterioration.

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2. Key Vital Signs

Metric	2023 Value (£)	2022 Value (£)	Interpretation
Fixed Assets	1,341	862	Slight increase, indicating modest investment in long-term assets—a positive sign of growth intent.
Current Assets	11,632	17,791	Decreased significantly, suggesting reduced cash or receivables, a cautionary symptom.
Current Liabilities	11,823	14,588	Decreased, which is positive, but still almost equal to current assets in 2023, causing liquidity risk.
Net Current Assets	-191	3,203	Negative working capital in 2023—a symptom of cash flow strain and potential difficulty meeting short-term obligations.
Net Assets	1,150	4,065	Decreased by over 70%, indicating erosion of equity and reserves, a distress signal.
Shareholders' Funds	1,150	4,065	Mirrors net assets; reduction reflects accumulated losses or withdrawals.
Number of Employees	2	1	Increased staffing level, which could lead to higher costs; needs to be sustainable.

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3. Diagnosis

The company operates in the retail sale of cosmetic and toilet articles, a sector that can be competitive with variable consumer demand. The financial "vital signs" reveal a transition from a relatively healthy liquidity position in 2022 (positive net current assets of £3,203) to a precarious one in 2023 (negative net current assets of £-191). This shift is akin to a patient whose blood pressure (cash flow) has dropped dangerously, signaling a risk of organ (business) distress if not managed.

The steep fall in net assets from £4,065 to £1,150 indicates that the company’s accumulated reserves have been depleted, possibly due to trading losses or increased costs. Although the company is still solvent (assets exceed liabilities), the thinning equity base reduces the financial "immunity" to withstand future shocks.

The increase in fixed assets suggests some investment, but it is small relative to the overall size, so it is unlikely to be a major cause of the strain. The increase in employees to two persons could be a strategic move but also adds to operational expenses.

Overall, the financial health shows symptoms of distress primarily due to deteriorating liquidity and equity, but the company is not yet in critical condition. The current director, who holds full control, has the authority to implement corrective measures.

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4. Recommendations

• Improve Cash Flow Management:
  Address the negative working capital by accelerating receivables collection, managing inventory efficiently, and negotiating longer payment terms with suppliers. Consider short-term financing options if necessary to stabilize cash flow.

• Cost Control and Expense Review:
  Conduct a thorough review of operating expenses, especially personnel costs given the increase in staff. Ensure that new hires contribute positively to revenue growth and profitability.

• Strengthen Equity Base:
  If feasible, consider additional capital injection or reinvestment of profits to rebuild shareholders’ funds, enhancing financial resilience.

• Monitor and Forecast Financials Regularly:
  Implement monthly financial reviews and cash flow forecasting to detect early warning signs and respond proactively, akin to regular health check-ups.

• Explore Revenue Growth Opportunities:
  Given the niche retail sector, consider expanding marketing efforts (leveraging social media presence like Facebook and Instagram) to boost sales, or diversify product lines to reduce dependence on a narrow range.

• Maintain Compliance and Reporting:
  Continue timely filing of accounts and confirmations, ensuring no regulatory penalties add to financial strain.

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