Company Number: 14252861

Analysis Date: 2025-07-29 15:06 UTC

Financial Health Assessment for Niyama Ventures Limited

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress, particularly in the most recent financial year. Although it remains active, the substantial decline in net assets and working capital signals weakening financial stability. The micro-entity status limits the data available, but the sharp drop from £5,044 net assets in 2023 to just £51 in 2024 is concerning. This suggests the company is barely solvent and operating on a very thin equity buffer, which warrants close attention.

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2. Key Vital Signs

Metric	2024 (Latest Year)	2023 (Prior Year)	Interpretation
Current Assets	£1,119	£22,514	Sharp decrease, indicating reduced short-term resources
Current Liabilities	£1,068	£17,470	Also reduced but only slightly below current assets
Net Current Assets (Working Capital)	£51	£5,044	Near zero in 2024 — signals inability to cover short-term debts comfortably
Net Assets / Shareholders Funds	£51	£5,044	Almost wiped out, indicating loss of equity and shareholder value
Average Number of Employees	0	1	No staff employed in 2024; possibly minimal operations
Director Loan Balance	£607 (owed by director to company)	N/A	Small receivable from director; may represent internal financing

Interpretation of Vital Signs:

• The drastic reduction in current assets and net assets signals "symptoms of distress" such as cash depletion or losses.
• Working capital is effectively zero, indicating the company has just enough liquid assets to meet immediate liabilities but lacks financial cushion.
• The absence of employees suggests minimal or no operational activity, which may explain reduced revenues or business contraction.
• The director loan balance indicates some internal financing, but it is modest and unlikely to offset broader financial weakness.

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3. Diagnosis

The financial "pulse" of Niyama Ventures Limited is weak. Although it remains legally active and not in liquidation or administration, the company’s balance sheet reveals a critical decline in financial health over the last year. The near erosion of net assets and working capital points toward operational difficulties, possibly from reduced sales, increased costs, or inadequate capital injection.

The company’s micro-entity status limits the available financial detail, but the key indicators suggest the business is struggling to maintain liquidity and solvency. This "poor circulation" of funds threatens the company's ability to meet short-term obligations and fund ongoing operations without additional capital.

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4. Recommendations

To improve financial wellness and restore health, the following steps are advised:

• Immediate Cash Flow Management:
  Ensure all incoming payments are collected promptly. Delay non-essential expenditures to conserve cash.

• Capital Injection:
  Consider additional funding from shareholders or external investors to rebuild equity and working capital.

• Operational Review:
  Assess business activities to identify unprofitable areas. Since there are no employees, evaluate whether the business model is viable or requires restructuring.

• Expense Control:
  Scrutinize overheads and minimize fixed costs to prevent further erosion of net assets.

• Director Engagement:
  The director’s loan suggests some internal financing; formalise this arrangement and consider further support if feasible.

• Prepare for Growth or Exit:
  Develop a clear strategic plan — either to revive operations through growth or to orderly wind down if recovery is unlikely.

• Regular Monitoring:
  Establish key financial metrics monitoring to detect early warning signs in the future.

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