NDSAWW LIMITED

Executive Summary

NDSAWW LIMITED is a newly formed micro-entity exhibiting early signs of financial fragility with negative net assets and slightly negative working capital. While this is typical for start-ups, immediate actions to boost liquidity and focus on revenue generation are critical to avoid cash flow distress. With prudent financial management and strategic focus, the company can stabilize and build a healthier financial foundation.

NDSAWW LIMITED - Analysis Report

Company Number: 15206766

Analysis Date: 2025-07-29 20:52 UTC

Financial Health Assessment for NDSAWW LIMITED (as of 31 October 2024)

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1. Financial Health Score: D

Explanation:
The company currently holds a negative net asset position (net liabilities of £63), indicating that its obligations slightly exceed its short-term assets. This reflects early symptoms of financial distress common in newly established businesses. While the scale is minimal, it suggests fragile financial stability requiring close monitoring and immediate corrective action.

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2. Key Vital Signs:

Metric	Value	Interpretation
Current Assets	£3,637	Cash and receivables are very low but present.
Current Liabilities	£3,700	Slightly exceeds current assets, indicating some short-term liquidity stress.
Net Current Assets	-£63	Negative working capital; a warning sign of cash flow pressure.
Net Assets (Shareholders’ Funds)	-£63	Equity is negative, showing liabilities exceed assets.
Number of Employees	0	No staff employed yet, typical for a micro, new start-up.
Account Category	Micro	Minimal filing requirements; company is small-scale.

Interpretation:

• The "vital signs" suggest a company in its infancy stage with limited financial resources.
• Negative working capital ("net current assets") implies that the company’s short-term debts slightly surpass its liquid assets, a "symptom" that could lead to cash flow difficulties.
• The negative net assets indicate the company has started with a slight deficit or has already incurred some initial losses or start-up costs not yet covered by capital.
• Zero employees and recent incorporation (October 2023) are consistent with an early-stage business still in the set-up or pre-revenue phase.

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3. Diagnosis:

NDSAWW LIMITED is a newly incorporated micro-entity operating in the retail sale via mail order or internet sector. The financial snapshot shows a fragile balance sheet with a small negative equity position and marginally negative working capital. This is not uncommon for start-ups as initial expenses often precede revenue generation, causing temporary "financial stress symptoms."

The lack of employees suggests minimal operating activity so far, possibly still in the development or market entry phase. The company's current liabilities slightly exceeding current assets could indicate short-term liquidity risk if not addressed promptly.

Overall, the diagnosis is that NDSAWW LIMITED is in a "pre-symptomatic" state where financial distress signs are mild but present. Without intervention, these symptoms could worsen as operational costs accumulate or if cash inflows do not materialize.

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4. Recommendations:

1. Strengthen Working Capital:

   • Inject additional capital or secure short-term financing to cover the negative working capital and build a cash buffer.
   • Improve cash flow management by accelerating receivables and negotiating longer payment terms with suppliers.

2. Revenue Generation Focus:

   • Prioritize sales efforts for early revenue to offset initial costs.
   • Explore marketing strategies to increase online sales volume given the SIC code focus.

3. Cost Control:

   • Maintain tight control over operating expenses until a steady revenue stream is established.
   • Avoid unnecessary fixed costs or commitments that could worsen liquidity.

4. Financial Monitoring:

   • Implement regular financial reviews (monthly cash flow forecasts and balance sheet checks).
   • Use early warning indicators (negative net assets, liquidity ratios) to detect any worsening conditions.

5. Professional Advice:

   • Consider consulting a financial advisor or accountant to assist with budgeting, cash flow forecasting, and financial planning.
   • Explore government grants or support schemes aimed at start-ups in the retail sector.

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