NATURESHOPPER LIMITED

Executive Summary

NatureShopper Limited is facing significant financial distress characterized by negative working capital and equity, reflecting liquidity and solvency challenges. Immediate corrective actions including cash flow management, cost reduction, and capital injection are essential to restore financial health and avoid insolvency risks.

NATURESHOPPER LIMITED - Analysis Report

Company Number: 12728865

Analysis Date: 2025-07-20 17:25 UTC

Financial Health Assessment of NATURESHOPPER LIMITED

---

1. Financial Health Score: F (Failing)

Explanation:
The company shows persistent negative net current assets (working capital) over the last two years, with worsening figures in the latest financial year, indicating an inability to cover short-term liabilities from short-term assets. This symptom points to a critical liquidity problem, putting the company at risk of financial distress.

---

2. Key Vital Signs (Core Financial Metrics)

Metric	2024 (Latest)	Interpretation
Current Assets	£100	Extremely low; indicates minimal liquid resources available.
Current Liabilities	£1,000	Significant short-term debts compared to assets.
Net Current Assets (Working Capital)	-£900	Negative; company cannot cover short-term liabilities.
Total Net Assets (Equity)	-£900	Negative equity; liabilities exceed assets, a concerning sign.
Share Capital	£100	Nominal capital; minimal buffer for losses.
Number of Employees	0	No staff; possibly minimal operational activity.

---

3. Diagnosis (What the Financial Data Reveals)

The company is showing classic symptoms of financial distress akin to a patient with dangerously low blood pressure and poor circulation. The negative net current assets indicate that NATURESHOPPER LIMITED lacks the "healthy cash flow" and liquidity necessary to meet immediate obligations, which is a critical "vital sign" failure. Additionally, the negative net assets (shareholders’ funds) point to insolvency-like conditions — the company's obligations exceed what it owns.

This condition has worsened since 2023, with current liabilities increasing by £250 while current assets stayed flat at £100. Such a trend suggests that liabilities are accumulating faster than the company can generate or hold assets, creating a "deficiency" that signals underlying business health issues such as potential cash flow problems, poor profitability, or accumulating debts.

The absence of employees indicates possibly a non-operational or minimally operational business, and the micro-entity status suggests the company is very small with limited financial activity.

---

4. Recommendations (Treatment Plan for Financial Wellness)

• Urgent Liquidity Assessment and Cash Flow Management:
  Conduct a detailed cash flow analysis to determine immediate funding needs. Consider short-term financing or restructuring of debts to relieve pressure on current liabilities.

• Cost Management and Operational Review:
  Evaluate all business expenses and reduce or eliminate non-essential costs. With no employees, consider whether the business model is viable or needs strategic revision.

• Equity Injection:
  The company requires capital infusion from the owner or investors to restore positive net assets and provide a buffer against liabilities. This "capital transfusion" is essential to stabilize balance sheet health.

• Business Model Review:
  Reassess the company’s strategy and market positioning (retail sale via internet/mail order). Determine if revenues are sufficient and explore diversification or new revenue streams.

• Professional Advice:
  Engage with insolvency practitioners or financial advisors to explore restructuring options and avoid formal insolvency processes.

• Regular Financial Monitoring:
  Establish monthly financial "check-ups" to monitor liquidity, working capital, and key performance indicators to catch early warning signs.

---

Summary: NATURESHOPPER LIMITED is currently in a critical financial condition with negative working capital and net assets, indicating poor liquidity and solvency. Immediate action is required to improve cash flow, reduce liabilities, and possibly recapitalize the business. Without intervention, the prognosis points toward increasing financial distress and potential insolvency.