I DID MY BEST LTD

Executive Summary

I DID MY BEST LTD maintains a positive but significantly reduced liquidity and equity position, indicating early financial stress despite current solvency. Immediate focus on cash flow management, cost control, and capital strengthening is advised to stabilize and improve the company's financial health. With proactive measures, the company can recover and build resilience for future growth.

I DID MY BEST LTD - Analysis Report

Company Number: 14189367

Analysis Date: 2025-07-20 16:40 UTC

Financial Health Assessment for I DID MY BEST LTD

---

1. Financial Health Score: C

Explanation:
The company demonstrates a modest but declining financial position typical of a very small (micro) private limited company in its early years. While it maintains a positive net asset position and positive net current assets (working capital), the sharp reduction in current assets and net assets between 2023 and 2024 signals early symptoms of financial stress that require monitoring and management action.

---

2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Current Assets	4,381	11,597	Reduced cash and receivables indicate tighter liquidity.
Current Liabilities	1,715	4,467	Reduced short-term debts, but proportionally less than assets.
Net Current Assets (Working Capital)	2,666	7,130	Positive but significantly decreased, a "warning symptom."
Net Assets (Equity)	2,666	7,130	Declining shareholder funds reflect erosion of financial buffer.
Average Number of Employees	2	2	Stable staffing level supports operational continuity.

Vital Sign Interpretation:

• Healthy Cash Flow: The company still holds more current assets than current liabilities, indicating it can meet short-term obligations without strain.
• Symptom of Distress: The halving of net assets and working capital within one year signals potential liquidity tightening or operational challenges.
• Micro Entity Status: As a micro company, it benefits from simplified reporting but has limited resources for absorbing financial shocks.

---

3. Diagnosis

I DID MY BEST LTD is in a fragile financial state characterized by:

• A positive but shrinking liquidity position, indicating the company currently can pay its bills but may face challenges if the trend continues.
• The decline in net current assets and equity suggests that either expenses are outpacing income, or assets (such as cash or receivables) are being depleted faster than replenished.
• The lack of a profit and loss account in the filing limits insight into profitability, but the balance sheet contraction hints at possible operating losses or distributions to shareholders.
• Stability in employee numbers suggests no immediate cost-cutting but also no growth in operational scale.
• The company operates in "Other service activities not elsewhere classified" (SIC 96090), which may imply a niche or bespoke service business with potentially volatile income streams.

Overall, the company is like a patient showing early symptoms of distress—still stable but needing intervention to prevent further deterioration.

---

4. Recommendations

To improve financial wellness and ensure long-term viability, I recommend the following:

1. Cash Flow Management:

   • Conduct a detailed cash flow forecast to identify timing gaps.
   • Accelerate receivables collection and negotiate longer payment terms with suppliers if possible.

2. Cost Control and Profitability:

   • Review expense lines to identify and cut non-essential costs.
   • Explore opportunities to increase revenue or diversify services to stabilize income.

3. Strengthen Capital Base:

   • Consider additional capital injection from shareholders or external investors to rebuild equity and provide a buffer.
   • Avoid excessive distributions or drawings until financial health improves.

4. Financial Reporting and Monitoring:

   • Prepare regular management accounts including profit and loss to track operating performance more closely.
   • Engage with a financial advisor or accountant to implement more robust financial controls.

5. Business Development:

   • Assess market position and client base to identify growth opportunities or risks.
   • If appropriate, consider strategic partnerships or marketing initiatives to increase sales.

---