INTEX FABRICATIONS LTD

Executive Summary

INTEX FABRICATIONS LTD shows a solid asset base and positive equity reflecting a sound foundation, but negative working capital signals short-term liquidity challenges typical for a new and small business. Focused cash flow management and strategic financing are critical to improve financial health and ensure operational stability. The company is at an early stage with potential to strengthen its financial position through prudent management.

INTEX FABRICATIONS LTD - Analysis Report

Company Number: 14739449

Analysis Date: 2025-07-29 12:57 UTC

Financial Health Assessment: INTEX FABRICATIONS LTD (as of 31 July 2024)

---

1. Financial Health Score: C

Explanation:
The company shows foundational strength with positive net assets and shareholders' funds, indicating that it has more assets than liabilities overall. However, the significant negative net current assets (working capital deficit) reflect liquidity strain, meaning the company may struggle to cover short-term debts with available short-term assets. Given that this is the company's first set of accounts since incorporation, the current financial "vital signs" suggest the company is at an early stage with signs of financial stress that need close management.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	242,297	Strong investment in long-term assets (likely machinery or equipment), showing capital foundation.
Current Assets	182,893	Cash, receivables, and stock available for short-term use.
Current Liabilities	288,021	Obligations due within one year; notably higher than current assets.
Net Current Assets (Working Capital)	-105,128	Negative value signals liquidity pressure; unable to meet short-term debts from current assets.
Total Assets less Current Liabilities	137,169	Positive, indicating long-term asset base exceeds short-term liabilities.
Net Assets (Equity)	118,802	Positive shareholder equity, meaning the business has value after liabilities are deducted.
Average Employees	2	Very small workforce, typical for a micro entity.

---

3. Diagnosis: What the Financial Data Reveals

• Liquidity Symptoms: The company exhibits a "symptom of distress" in the form of a negative working capital position (-£105k). This means short-term liabilities exceed short-term assets, which could create challenges in meeting immediate financial obligations such as supplier payments or wages. This is a common situation for newly incorporated companies investing heavily in fixed assets.

• Capital Structure: With net assets of £118,802, the company has a "healthy backbone" of equity capital. This is a positive sign, showing that the company is not over-leveraged with debt overall.

• Operational Scale: The micro-entity status and minimal employees indicate the company is in an early development or startup phase. The financials reflect initial investments rather than mature profitability.

• Risk Factors: The reliance on significant fixed assets puts pressure on cash flow to generate returns. The shortfall in working capital is a "warning sign" that operational cash flow needs to be closely managed.

---

4. Recommendations to Improve Financial Wellness

• Improve Liquidity Management:

  • Consider negotiating extended payment terms with suppliers or securing short-term financing to bridge the working capital gap.
  • Explore options for faster collection of receivables or converting inventory to cash more efficiently.

• Monitor Cash Flow Closely:

  • Implement regular cash flow forecasting to anticipate shortfalls and take corrective action proactively.
  • Avoid over-investment in fixed assets until liquidity improves.

• Strengthen Equity or Long-Term Financing:

  • If possible, raise additional equity capital or long-term loans to reduce pressure on short-term cash resources.

• Operational Efficiency:

  • With only two employees, continue focusing on efficiency and possibly outsourcing non-core activities to reduce fixed costs.

• Prepare for Growth:

  • As the company matures, aim to improve profitability to rebuild positive working capital and create a buffer against financial shocks.

---

Medical Analogy Summary

INTEX FABRICATIONS LTD currently displays the vital signs of a "young patient" with a strong skeletal frame (fixed assets and equity) but is experiencing "early symptoms" of liquidity strain akin to a "healthy heart under stress." The company’s financial "pulse" requires careful monitoring and management to avoid "circulatory collapse" from cash shortages. With attentive care—improving cash inflow, managing outflows, and possibly strengthening its financial "immune system" with additional capital—the prognosis for stabilizing and growing financially is fair.

---