LEYWOOD LIMITED

Executive Summary

Leywood Limited is currently in a critical financial state with significant liquidity shortfall and negative equity, signaling severe financial distress. The company appears to be winding down operations, with a high likelihood of closure within the next year unless urgent financial restructuring or capital injection occurs. Immediate actions are needed to stabilise cash flow and address mounting liabilities.

LEYWOOD LIMITED - Analysis Report

Company Number: 13932711

Analysis Date: 2025-07-29 20:42 UTC

Financial Health Assessment for Leywood Limited (Year Ended 31 March 2024)

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1. Financial Health Score: D

Explanation:
Leywood Limited currently exhibits significant financial distress. The company’s net current liabilities and negative shareholders’ funds indicate a weak financial position. Its cash reserves are minimal relative to liabilities, and accumulated losses have nearly doubled in one year, signaling ongoing operational or financial challenges. This grade reflects a company with severe symptoms of financial strain that require urgent intervention.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	13,816	19,557	Low and declining; cash is primary asset
Cash Reserves	13,816	8,866	Slight improvement, but still very low
Debtors	0	10,691	No receivables in 2024; could indicate reduced sales or tighter credit control
Current Liabilities	100,750	60,113	Substantial increase; major concern
Net Current Assets	(86,934)	(40,556)	Negative working capital; liquidity distress
Shareholders’ Funds	(86,934)	(40,556)	Negative equity; accumulated losses double
Retained Earnings (P&L Reserve)	(87,034)	(40,656)	Deficit growing; company is in the red

Interpretation:

• The company is running a "deficit fever" with net current liabilities more than six times its cash reserves, indicating poor liquidity or "breathing difficulty" financially.
• Negative shareholders’ funds and a growing deficit reveal the company is in a weakened state structurally — akin to a patient with a failing organ requiring immediate care.
• The absence of debtors in 2024 may indicate a halt or slowdown in business operations or sales, worsening cash flow prospects.

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3. Diagnosis

Leywood Limited is currently suffering from severe financial distress, characterized by:

• Liquidity Crisis: The company’s ability to cover short-term obligations is compromised, with liabilities far exceeding liquid assets. This is a key symptom of financial distress that could impede normal operations.
• Solvency Issues: Negative shareholders’ funds and rising accumulated losses indicate the company’s net worth is in deficit, threatening its long-term viability.
• Operational Contraction: The disappearance of debtors and low current assets suggest the business may have slowed or ceased trading activities.
• Going Concern Doubt: The director’s notes reveal that the company is no longer required for its original purpose and is likely to be closed within 12 months, confirming the prognosis of closure or dissolution.

In medical terms, the company is in a critical condition with failing financial "vital organs" — liquidity and solvency — and is likely facing "end-of-life" status unless significant restructuring or capital injection occurs.

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4. Recommendations

To improve Leywood Limited’s financial wellness, consider the following actions akin to a treatment plan:

• Immediate Cash Flow Support: Secure emergency funding or inject capital to stabilize liquidity and cover current liabilities. Without a "healthy cash flow," the company cannot survive.
• Debt Restructuring: Negotiate with creditors to extend payment terms or reduce liabilities to relieve immediate financial pressure. This is comparable to reducing a patient's medication dosage to avoid overdose.
• Business Review & Strategic Pivot: Conduct a thorough review of business operations to identify non-viable activities, reduce costs, and seek new revenue streams if continuing operations are planned.
• Close or Liquidate: If the business is no longer viable or required, initiate an orderly closure to minimize further financial damage and legal exposure.
• Engage Professional Advice: Seek expert insolvency or restructuring consultants to explore options such as administration or company voluntary arrangements (CVAs) if turnaround is possible.

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Executive Summary