GO RIGHT LTD

Executive Summary

GO RIGHT LTD is currently solvent but financially fragile, with significantly reduced net assets and working capital over the past three years. The company must urgently focus on cash flow management, profitability improvement, and rebuilding equity to avoid liquidity distress. With careful monitoring and strategic adjustments, the outlook can stabilize and improve.

GO RIGHT LTD - Analysis Report

Company Number: 13810337

Analysis Date: 2025-07-20 13:19 UTC

Financial Health Assessment Report for GO RIGHT LTD

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1. Financial Health Score: C (Fair)

GO RIGHT LTD shows signs of survival and operational continuity but exhibits symptoms of financial strain. The company’s net assets have significantly declined over three years, indicating a weakening financial foundation. While still solvent, the very slim working capital and declining equity suggest caution.

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2. Key Vital Signs

Metric	2023	2022	2021	Interpretation
Current Assets	£9,212	£2,114	£2,003	Slight improvement in liquidity
Current Liabilities	£8,853	£400	£289 (inferred approx.)	Sharp increase, tight short-term obligations
Net Current Assets	£359	£1,714	£1,714	Severely reduced working capital
Net Assets (Equity)	£459	£1,814	£1,814	Significant erosion of shareholder funds
Share Capital	£100	£100	£100	Stable but minimal capital base
Average Number of Employees	1	1	1	Small scale, micro entity size

• Liquidity (Current Ratio): ~1.04 (2023) – Just above 1, indicating barely enough short-term assets to cover liabilities.
• Solvency: Positive net assets but drastically reduced from prior years, signaling weakening solvency.
• Scale: Micro entity with minimal staff and capital, typical for a start-up or small contracting business.
• Industry: Diverse activities in building projects, roofing, and used car sales indicate multiple income streams but potentially fragmented focus.

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3. Diagnosis: Financial Health Overview

GO RIGHT LTD presents with a "fragile but operational" financial condition. The company’s vital signs indicate the following symptoms:

• Shrinking Equity: The net assets have dropped from £1,814 in 2021 to just £459 in 2023, a 75% decline. This erosion suggests accumulated losses or significant withdrawals, pointing to underlying profitability or cash flow challenges.
• Working Capital Strain: Net current assets plummeted from £1,714 to £359, meaning the company’s short-term financial buffer has almost vanished. This is a critical warning sign akin to a patient showing signs of dehydration—cash flow is tight, and the company risks liquidity stress.
• Increased Current Liabilities: Current liabilities rose sharply to £8,853, likely from increasing trade payables or short-term debts, putting pressure on immediate cash obligations.
• Limited Scale and Resources: With only one employee and minimal share capital, the company operates on a lean model, limiting its ability to absorb shocks or invest in growth.
• No Audit Requirement: As a micro entity, accounts are unaudited, so while compliance is met, the less rigorous oversight may mask deeper issues not visible in the numbers.

Overall, the company is functioning but vulnerable. The financial condition requires close monitoring to prevent a downward spiral towards insolvency.

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4. Recommendations: Prescriptions for Financial Wellness

1. Strengthen Cash Flow Management:

   • Implement tighter control on receivables and payables to avoid liquidity crunches.
   • Negotiate extended payment terms with suppliers to reduce short-term liabilities pressure.

2. Improve Profitability:

   • Review business lines to focus on the most profitable activities (likely building projects or car sales).
   • Control overheads rigorously given the micro scale.

3. Capital Injection or Reserves Rebuild:

   • Consider introducing additional capital or reinvesting profits to rebuild equity and working capital cushions.
   • Alternatively, seek small business loans with manageable terms to support operational needs.

4. Expense and Risk Management:

   • Avoid unnecessary costs; maintain lean staffing but ensure operational efficiency.
   • Regularly review contracts and engagements to minimize risks and unexpected liabilities.

5. Strategic Focus and Business Planning:

   • Align activities under a coherent, focused strategy to improve operational effectiveness.
   • Prepare a rolling forecast and monitor key financial indicators regularly.

6. Professional Advice and Support:

   • Engage accountants or financial advisors to assist in budgeting, tax planning, and compliance.
   • Consider mentoring or peer networks for small business support.

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Medical Analogy Summary:

GO RIGHT LTD’s financial health resembles a patient with a weakened immune system—still active but with depleted energy reserves and vulnerable to external shocks. Immediate attention to "hydration" (cash flow) and "nutritional support" (capital and profitability) is essential to regain strength and avoid critical failure.

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