Company Number: 14123289

Analysis Date: 2025-07-29 12:19 UTC

Financial Health Assessment for LIME STREET BUFFET LIMITED
Date of Analysis: June 2024

---

1. Financial Health Score: D

Explanation:
The company is showing persistent negative net assets (net liabilities) over the last three financial years, indicating a fragile and unhealthy financial condition. The micro-entity status and lack of employees suggest a very early-stage or minimally active business, but the continuing deficit in working capital is a symptom of financial distress. Without corrective measures, the company risks insolvency.

---

2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	1,737	Cash or assets likely to convert to cash soon — very low level.
Current Liabilities	(11,334)	Debts due within one year exceed current assets significantly.
Net Current Assets (Working Capital)	(9,597)	Negative working capital indicating inability to cover short-term debts.
Total Assets Less Current Liabilities	(9,597)	Overall negative asset base after short-term liabilities.
Net Assets (Equity)	(9,597)	Shareholders’ funds are negative, reflecting accumulated losses.
Average Number of Employees	0	No employees, possibly no operations or relying on contractors.

Interpretation:

• Negative working capital is a key symptom of liquidity stress, meaning the company may struggle to pay its bills on time.
• Negative net assets indicate the company’s liabilities exceed its assets, a classic sign of financial distress or insolvency risk.
• The lack of employees may mean the business is not fully operational or is in a start-up phase without significant activity.
• The current liabilities have slightly increased, and net assets have marginally improved but remain deeply negative, showing no meaningful recovery.

---

3. Diagnosis: Business Financial Health

LIME STREET BUFFET LIMITED is in a precarious financial state. The persistent negative net assets and working capital are symptoms indicating the business is under financial strain. This could be due to ongoing losses, insufficient capital injection, or operational challenges. The absence of employees and minimal current assets suggest limited operational activity or a start-up yet to scale.

This condition is comparable to a patient with chronic illness showing no improvement despite treatment — the financial "symptoms" indicate ongoing distress with risk of "organ failure" (insolvency) if not addressed.

---

4. Prognosis

Without intervention, the company faces an elevated risk of insolvency or forced restructuring. However, if the owners inject additional capital, improve cash flow management, or increase operational activity, the financial condition could improve. Early corrective action is critical to "stabilize the patient" and prevent financial collapse.

---

5. Recommendations

• Capital Injection: The company needs fresh equity or debt financing to restore positive net assets and working capital, akin to administering life-support to a weak patient.
• Cost Management: Review all expenses and cut non-essential costs immediately to conserve cash.
• Revenue Strategy: Develop a clear plan to increase sales and cash inflows—without revenue, liquidity issues will worsen.
• Financial Monitoring: Implement monthly cash flow forecasts and financial reviews to detect early warning signs.
• Professional Advice: Engage a financial advisor or turnaround specialist to assist with restructuring and recovery planning.
• Compliance Checks: Continue timely filing of statutory accounts and confirmation statements to avoid penalties and maintain credibility.

---

Executive Summary

LIME STREET BUFFET LIMITED is showing clear signs of financial distress with negative net assets and working capital over the past three years. This "symptom" of financial ill-health suggests the business is struggling to cover its short-term obligations and lacks sufficient capital base. Immediate action is needed to inject funds, improve cash flow, and stabilize operations to prevent insolvency.