INVICTA HEALTH & PERFORMANCE LTD

Executive Summary

Invicta Health & Performance Ltd, a newly incorporated micro-entity, shows a positive but fragile financial position with a working capital deficit signaling early liquidity challenges. The company has modest asset investment and a small equity base, typical for a start-up. Immediate focus on improving cash flow and managing liabilities will be critical to ensure sustainable growth and financial wellness.

INVICTA HEALTH & PERFORMANCE LTD - Analysis Report

Company Number: 15349332

Analysis Date: 2025-07-29 18:29 UTC

Financial Health Assessment Report for INVICTA HEALTH & PERFORMANCE LTD

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1. Financial Health Score: C

Explanation:
The company is in its infancy (incorporated December 2023) and reports a positive net asset position (£440), which is a good sign of initial capital funding. However, the presence of net current liabilities (-£9,027) indicates a working capital deficiency, which points to some liquidity stress. Given that the business has only been operational for one accounting period and is a micro-entity, this grade reflects a cautious but not alarming condition, with room for improvement in cash flow and working capital management.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	11,688	Represents investment in long-term resources, modest for a start-up.
Current Assets	5,957	Short-term assets including cash and receivables, relatively low.
Current Liabilities	14,984	Short-term debts exceeding current assets; potential liquidity risk.
Net Current Assets (Working Capital)	-9,027	Indicates working capital deficit, a symptom of cash flow constraints.
Total Assets Less Current Liabilities	2,661	Positive, indicating overall asset coverage after short-term debts.
Provisions for Liabilities	2,221	Reserved for potential future obligations, reducing net assets.
Net Assets (Equity)	440	Positive but very low, showing limited equity buffer.
Staff Numbers	2	Small team, manageable overhead but limits capacity.

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3. Diagnosis

• Liquidity & Cash Flow: The negative net current assets reveal a "symptom of distress" in liquidity — the company has more short-term obligations than liquid assets to cover them. This is common in early-stage businesses but requires urgent management attention to prevent cash shortages.

• Capital Structure: The positive net assets and shareholders’ funds, though small, indicate the founders have injected some capital. This is a "healthy pulse" showing financial support but the low equity level means there's little cushion against losses or unforeseen expenses.

• Asset Investment: Fixed assets are modest but appropriate for a micro-entity in the human health sector. This suggests the business is investing in necessary equipment or facilities rather than overextending.

• Business Scale & Staffing: With only two employees (including directors), the business is lean, minimizing overhead but potentially limiting operational scalability.

• Provisions: The presence of provisions (~£2,221) suggests the company is preparing for potential liabilities, which is cautious but reduces immediate net asset strength.

Overall, the company shows the typical "early stage" financial profile with initial funding, some investment, but working capital challenges that need careful monitoring.

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4. Recommendations

• Improve Working Capital Management:
  Focus on accelerating receivables collection and managing payables terms to smooth cash flow. Consider negotiating better payment terms with suppliers or exploring short-term financing options to bridge liquidity gaps.

• Monitor Cash Flow Closely:
  Implement a rolling cash flow forecast to anticipate shortages and plan accordingly. This will help avoid the "symptom of distress" escalating into crisis.

• Build Equity Buffer:
  Owners may consider additional capital injections or reinvesting early profits to strengthen equity and provide a financial cushion.

• Control Overhead Costs:
  Maintain lean operations but plan strategic hires or investments only when supported by stable cash flow to avoid overextension.

• Regular Financial Reviews:
  Establish monthly financial health checks to track vital signs and adjust business plans as necessary.

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