GET A MOVE ON REMOVALS LTD

Executive Summary

GET A MOVE ON REMOVALS LTD is a young company facing early financial challenges, including negative net assets and working capital deficits, signaling liquidity strain. The business relies heavily on director loans and has yet to achieve profitability. Strategic focus on improving cash flow, increasing equity, and driving operational profits is critical to restore financial wellness and ensure sustainable growth.

GET A MOVE ON REMOVALS LTD - Analysis Report

Company Number: 14458680

Analysis Date: 2025-07-29 12:49 UTC

Financial Health Assessment Report for GET A MOVE ON REMOVALS LTD

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1. Financial Health Score: D

Explanation:
The company currently exhibits signs of financial strain, characterized by negative net assets and net current liabilities, indicating an unhealthy balance sheet. While the business is operational and not in default on filings, the negative equity and working capital concerns warrant caution. This places the company in a below-average financial health category, scoring a D.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash on Hand	12,213	Reasonable cash reserves for a start-up; a positive vital sign indicating liquidity availability.
Current Liabilities	33,719	Higher short-term obligations compared to cash; a symptom of liquidity stress.
Net Current Assets	-21,506	Negative working capital, indicating the company may struggle to meet short-term debts promptly.
Net Assets (Equity)	-7,106	Negative shareholder equity suggests accumulated losses or undercapitalization—a sign of financial distress.
Share Capital	4	Minimal initial capital, typical for a newly formed company but insufficient to cover liabilities.
Tangible Fixed Assets	14,400	Investment in plant and machinery (likely vehicles for removals), showing some asset base.
Loans from Directors	33,369	Significant funding via director loans; indicates reliance on internal financing rather than external credit.
Profit and Loss Account	-7,109	Accumulated losses reflected here, consistent with negative equity.
Employees	0	No employees during the period, possibly indicating a founder-run operation without payroll expenses.

Interpretation:
The "vital signs" reveal a business in early stages that is capital-intensive (fixed assets for operations) but currently operating at a loss or with insufficient profits to build positive equity. Negative working capital is a warning symptom, indicating potential short-term liquidity issues if current liabilities are not managed effectively. The reliance on director loans acts like an internal support system but also signals that external financing or operational cash flow is insufficient to cover expenses.

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3. Diagnosis

GET A MOVE ON REMOVALS LTD is a recently incorporated private limited company operating in the removal services sector. The financial snapshot shows a business in its infancy with significant start-up costs funded primarily by directors’ loans rather than equity or operational profits.

• Balance Sheet Condition: The negative net assets indicate the company is technically insolvent on a book value basis; liabilities exceed assets. This is common in the first year of operation but must be addressed as the company matures.
• Liquidity Status: Negative net current assets (-£21,506) reflect that current liabilities are over 2.5 times the cash available, signaling potential cash flow challenges in meeting immediate obligations.
• Capital Structure: Minimal share capital (£4) and heavy reliance on director loans (£33,369) denote a fragile capital base.
• Profitability: The absence of profit and the presence of accumulated losses (-£7,109) show that the company has not yet generated sustainable earnings.
• Operational Activity: No employees reported, which may imply all operations are managed by directors or subcontractors, potentially reducing payroll costs but limiting scalability.

Overall, the company is showing symptoms of financial distress typical for a start-up phase but lacks a strong financial cushion. Without operational profit growth or improved liquidity, the company risks worsening its solvency position.

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4. Recommendations

To improve the company’s financial health and recovery prospects, the following actions are advised:

1. Improve Working Capital Management:

   • Negotiate longer payment terms with creditors and accelerate receivables if any.
   • Monitor cash flow closely to avoid liquidity crises.

2. Increase Equity Capital:

   • Consider a capital injection by directors or external investors to bolster the equity base and reduce reliance on debt.
   • This will improve solvency ratios and provide a buffer against losses.

3. Focus on Profitability:

   • Develop a clear operational plan to generate positive operating cash flow and profits.
   • Review pricing, cost structure, and operational efficiencies to reduce losses.

4. Consider Formal Financial Planning:

   • Prepare a detailed budget and cash flow forecast.
   • Regularly review financial performance against targets to identify early warning signs.

5. Operational Expansion:

   • Once financial stability improves, consider hiring to scale operations and increase revenue streams.

6. Maintain Compliance:

   • Continue timely filing of accounts and confirmation statements to avoid penalties and negative reputational impact.

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Medical Analogy Summary

GET A MOVE ON REMOVALS LTD currently shows symptoms of financial distress, akin to a patient with low blood pressure and poor circulation—liquidity is weak, and the heart of the business (profitability) has yet to strengthen. The heavy reliance on director loans is like an IV drip keeping the patient alive but not curing the underlying condition. Without improving financial "vital signs" such as working capital and equity, the prognosis could worsen. Prompt and targeted "treatment" (capital injection, cash flow management, profit improvement) is essential to restore the company's financial health.

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