GET LOST IN NATURE LIMITED

Executive Summary

Get Lost In Nature Limited demonstrates solvency and steady growth in net assets but suffers from liquidity challenges due to negative working capital and low cash reserves. The company should focus on improving cash flow through better debtor management and working capital optimisation to avoid short-term distress. With these adjustments, the company is positioned for stable future financial health.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

GET LOST IN NATURE LIMITED - Analysis Report

Company Number: 13478198

Analysis Date: 2025-07-29 15:17 UTC

Financial Health Assessment Report for Get Lost In Nature Limited


1. Financial Health Score: C

Explanation:
The company shows moderate financial health with some signs of strain in liquidity and working capital management. While net assets and shareholders’ funds have grown steadily, current liabilities slightly exceed current assets, indicating a liquidity tightrope. The absence of audit and limited disclosure restricts a fuller assessment, but available data suggests cautious optimism with room for improvement.


2. Key Vital Signs

Metric 2024 Value Interpretation
Net Assets £7,622 Positive and growing, indicating accumulated value and solvency.
Current Assets £5,694 Includes low cash (£564) and rising debtors (£5,130).
Current Liabilities £6,017 Slightly higher than current assets, causing negative working capital.
Net Current Assets -£323 Negative, indicating potential short-term liquidity stress ("symptom of distress").
Cash Reserves £564 Very low, signaling limited immediate cash availability ("weak pulse").
Debtors £5,130 Large and rising, potentially indicating slow collections or related party balances.
Fixed Assets (net) £9,808 Healthy long-term asset base, but less liquid.
Shareholders Funds £7,622 Equity base has grown from £3,516 in 2021, showing retained earnings growth.
Provisions for Liabilities £1,863 Significant, possibly reflecting future obligations or contingencies.
Average Employees 2 Very small team, typical for a micro/small company.

3. Diagnosis

  • Liquidity and Working Capital: The company’s current liabilities slightly exceed current assets by £323, a red flag for “healthy cash flow.” The very low cash balance (£564) amplifies this concern, suggesting potential difficulty meeting short-term obligations without converting debtors or raising funds. The large debtor balance (£5,130) comprises mainly amounts owed by group undertakings, which could be less liquid and extend payment times, thus straining working capital.

  • Solvency and Capital Structure: Positive net assets and shareholders’ funds growth from £3,516 (2021) to £7,622 (2024) indicate the company is solvent with a growing equity base — a “strong heart” showing retained profits supporting the business. Tangible fixed assets provide a solid asset base but are less useful for immediate liquidity needs.

  • Profitability and Sustainability: Absence of an income statement limits direct profitability analysis. However, the increase in retained earnings implies profitable operations or at least sustainable business activity. The company remains small with only two employees, which may limit operational scale but keep overheads low.

  • Risks and Contingencies: The provisions for liabilities remain significant (£1,863), suggesting the directors anticipate some future costs or potential risks, which should be monitored closely.

  • Governance and Control: The company is controlled equally by two directors/shareholders with no reported disqualifications or adverse records, indicating stable leadership.


4. Recommendations

  1. Improve Liquidity Management:

    • Actively manage debtor collections, especially amounts owed by related parties, to convert receivables to cash faster and improve the “cash pulse.”
    • Consider short-term financing options if immediate cash flow pressures arise, but avoid over-reliance on debt to prevent liquidity crises.
  2. Monitor Working Capital Closely:

    • Aim for positive net current assets by either increasing current assets or deferring/scheduling current liabilities.
    • Negotiate payment terms with suppliers and tax authorities to smooth cash outflows.
  3. Strengthen Cash Reserves:

    • Build cash buffers above immediate liabilities to absorb shocks and fund day-to-day operations safely.
    • Reduce reliance on intercompany balances where possible to diversify cash sources.
  4. Review Provisions and Contingencies:

    • Evaluate the nature of provisions to understand potential liabilities and ensure adequate planning for these future costs.
  5. Increase Financial Reporting Transparency:

    • Even though audit exemption applies, consider voluntary internal or external reviews to enhance financial credibility and stakeholder confidence.
  6. Strategic Growth Planning:

    • Given the niche event catering and holiday accommodation sector, explore opportunities to expand revenue streams or optimize asset use to improve profitability and resilience.

Medical Analogy Summary

The company’s financial health shows a “steady heartbeat” with increasing net assets reflecting a “strengthening heart.” However, the “weak pulse” of cash flow and “negative working capital” symptoms indicate underlying liquidity stress that requires immediate attention to prevent “financial distress.” With careful management and improved cash flow, the company can maintain its “vital signs” and support sustainable growth.



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