HARVESTERS BAKERY LTD

Executive Summary

HARVESTERS BAKERY LTD exhibits persistent financial distress marked by negative net assets and working capital deficits over the past three years, signaling liquidity and solvency challenges. While compliant with filing obligations and maintaining active status, the company requires immediate financial restructuring and cash flow management to restore stability and ensure future viability.

HARVESTERS BAKERY LTD - Analysis Report

Company Number: 13757189

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

Financial Health Assessment Report for HARVESTERS BAKERY LTD

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1. Financial Health Score: D

Explanation:
The company shows negative net current assets and net assets (shareholders’ funds) consistently over the last three years, indicating a financial state akin to a patient with chronic symptoms of distress. Although it remains active and compliant with filing deadlines, the balance sheet reflects a persistent deficit position that points to underlying financial strain.

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2. Key Vital Signs

Metric	2022 (£)	2023 (£)	2024 (£)	Interpretation
Current Assets	0	0	(not stated explicitly, assumed 0)	No short-term resources available to cover liabilities
Current Liabilities	5,229	5,229	5,329	Debts due within one year remain steady but unresolved
Net Current Assets	-5,229	-5,229	-5,329	Indicates working capital deficiency; unable to meet short-term obligations
Net Assets (Shareholders Funds)	-5,229	-5,229	-5,329	Negative equity implies liabilities exceed assets; insolvent on paper
Employees	0	0	0	No employees suggests limited operational scale or reliance on contractors

Interpretation of Vital Signs:

• Negative net current assets ("working capital deficit") is a critical symptom showing the firm has more current liabilities than current assets, a sign of liquidity stress.
• Negative net assets is a more serious diagnosis indicating the company’s total liabilities exceed its total assets, a sign of insolvency.
• The absence of employees might suggest the company operates on a very small scale or is not currently trading actively, which could exacerbate cash flow challenges.
• The company is a Micro-entity, so its small scale limits complexity but also access to capital.

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3. Diagnosis

HARVESTERS BAKERY LTD is in a financially distressed condition based on the persistent negative equity and working capital deficit over multiple years since incorporation in late 2021. The "symptoms" — consistent negative net assets and current liabilities exceeding current assets — suggest the business is operating at a loss, or possibly relying on directors’ loans or external financing that is not recorded as assets.

The absence of any current assets listed (such as cash or receivables) is concerning, as it implies the company may lack liquid resources to meet immediate obligations. Without employees, the business might be inactive or minimally active, possibly in a start-up phase or restructuring.

Despite these issues, the company has maintained compliance with filing requirements and remains active, which is positive. However, the financial health resembles a patient with chronic illness requiring intervention to stabilize.

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4. Recommendations

• Inject Capital or Restructure Debt: Immediate steps to improve liquidity are needed, such as directors injecting further capital or renegotiating terms with creditors to convert short-term liabilities into longer-term debt where possible. This would alleviate "symptoms" of cash flow strain.
• Prepare a Cash Flow Forecast: A detailed forecast should be developed to understand future liquidity needs and ensure the company can meet obligations as they fall due. This is like monitoring vital signs closely to prevent crisis.
• Operational Review: Assess if the business model is viable at current scale and consider introducing activities that generate positive cash flow. The lack of employees might indicate dormant operations; re-activating or pivoting the business could improve financial health.
• Explore Funding Options: As a micro-entity, options might include grants, loans, or equity investment from founders or external investors to strengthen the balance sheet.
• Seek Professional Advice: Engage with an insolvency practitioner or financial advisor to explore options such as a company voluntary arrangement (CVA) or restructuring if liabilities cannot be met in the short term.

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