GOSFORTH SUSHI LTD

Executive Summary

GOSFORTH SUSHI LTD shows improving liquidity and operational cash flow but continues to carry negative equity, reflecting past losses. While the company can currently meet short-term obligations, addressing long-term debt and restoring profitability are critical to achieving sustainable financial health. Prompt action to strengthen capital and manage liabilities will improve the company’s financial prognosis.

GOSFORTH SUSHI LTD - Analysis Report

Company Number: 13259298

Analysis Date: 2025-07-20 17:47 UTC

Financial Health Assessment Report for GOSFORTH SUSHI LTD

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1. Financial Health Score: C (Fair)

Explanation:
GOSFORTH SUSHI LTD exhibits some signs of improving financial stability, particularly in managing its working capital, but it continues to carry a negative net asset position indicating accumulated losses or liabilities exceeding assets. While current assets exceed current liabilities, the presence of long-term liabilities and net negative equity suggest financial strain that needs addressing to avoid further deterioration.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£3,150	Small base of long-term assets, typical for a micro business.
Current Assets	£28,162	Healthy short-term asset pool, primarily cash/debtors, indicating good liquidity.
Current Liabilities	£19,313	Obligations due within a year; manageable given current assets.
Net Current Assets (Working Capital)	£8,849	Positive working capital — a "healthy pulse" indicating ability to cover short-term debts.
Long-term Liabilities	£17,000	Substantial debt falling due after one year, representing a "chronic burden".
Net Assets / Shareholders’ Funds	-£5,001	Negative equity ("symptom of distress") indicating accumulated losses or undercapitalization.

Additional Observations:

• The company’s cash and debtor levels have grown from the previous year, suggesting improved operational cash inflows.
• Net current assets have improved significantly from a negative position in prior years, signifying better liquidity management.
• Despite this, the ongoing negative net asset base points to unresolved underlying financial weakness.

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3. Diagnosis

GOSFORTH SUSHI LTD is currently in a state of financial recovery but not yet fully healthy. The positive working capital is a promising "heartbeat" indicating the company can meet its immediate financial obligations without distress. However, the persistent negative net asset figure reflects historical losses or cumulative deficits that have not been offset by retained profits or new capital injections.

The presence of significant long-term liabilities imposes a "chronic load" on the company’s balance sheet, restricting financial flexibility. This situation may pressure the company’s solvency if operational profits do not improve or if debt servicing becomes onerous.

The micro-entity reporting status means the company is small and likely operating with limited resources, which can exacerbate sensitivity to cash flow fluctuations and external shocks such as market changes or cost increases.

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4. Recommendations

• Strengthen Equity Base: Consider capital injection or restructuring to improve shareholders’ funds and reduce negative net assets. This acts like "strengthening the heart muscle" to sustain business vitality.
• Manage Long-term Debt: Explore refinancing options to extend repayment terms or reduce interest rates, alleviating the "chronic burden" of long-term liabilities.
• Improve Profitability: Focus on increasing operational efficiency and sales to generate retained earnings, which will gradually restore net asset health.
• Maintain Healthy Cash Flow: Continue monitoring and managing cash and receivables proactively to keep working capital positive and avoid liquidity "arrhythmia".
• Regular Financial Monitoring: Implement monthly financial reviews to detect early "symptoms" of distress and respond swiftly.
• Risk Management: Assess market risks and supply chain vulnerabilities given the take-away food sector, planning contingencies to sustain business operations.

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