Company Number: 13512890

Analysis Date: 2025-07-20 17:39 UTC

Financial Health Assessment: Norton PK Ltd (as of 31 July 2023)

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1. Financial Health Score: D

Explanation:
The company shows significant signs of financial distress, including negative net assets and persistent working capital deficits. Although fixed assets remain stable, the liabilities exceed total assets, indicating a weakened financial position. The score reflects urgent need for corrective measures to restore financial health.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	235,244	Strong asset base in property or equipment; "healthy foundation" but not liquid
Current Assets	10,929	Very low liquid assets; "thin bloodstream" for daily operations
Current Liabilities	76,466	Significant short-term debts needing urgent attention
Net Current Assets	-65,537	Negative working capital; "symptom of cash flow strain"
Creditors due after 1 year	172,770	Long-term liabilities exceed total assets; "chronic burden"
Net Assets (Shareholders Funds)	-3,063	Negative equity; "sign of insolvency risk"
Employees	2	Small workforce consistent with micro entity classification

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3. Diagnosis

Norton PK Ltd is currently operating with a negative net asset position, indicating liabilities surpass total assets—a key sign of financial distress or insolvency risk. The negative working capital (net current assets) highlights a cash flow deficiency, suggesting the company may struggle to meet its short-term obligations without additional cash inflows or refinancing.

Despite having a solid fixed asset base (£235k), these assets are not easily convertible to cash to address immediate liabilities. The persistence of substantial long-term creditors (£172k+) further burdens the company's financial structure, revealing a "chronic condition" that requires management attention.

The company has shown some improvement from the previous year (net assets improved from -£7,976 to -£3,063), indicating potential for recovery but not yet a "healthy" financial state. The micro-entity status limits disclosure, but the available data signals that the company is in a precarious financial condition, with symptoms of distress requiring intervention.

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4. Recommendations

• Improve Liquidity: Seek ways to increase current assets, either through accelerated receivables collection, inventory reduction, or securing short-term financing to relieve cash flow stress.
• Restructure Liabilities: Engage creditors to negotiate better terms, extend payment schedules, or reduce debt burden where possible to alleviate the long-term liability pressure.
• Asset Optimization: Evaluate whether fixed assets can be leveraged (e.g., refinancing based on property value) to inject working capital or reduce debt.
• Cost Management: Tighten operational expenses to preserve cash and improve profitability, especially given the small size and limited workforce.
• Financial Monitoring: Implement robust cash flow forecasting and financial controls to detect and address liquidity issues early.
• Professional Advice: Consider consulting insolvency or restructuring professionals for tailored strategies to restore solvency and protect stakeholder interests.

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