Company Number: 14248666

Analysis Date: 2025-07-29 20:18 UTC

Financial Health Assessment for OVERTHROW LTD

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1. Financial Health Score: C (Fair)

Explanation:
OVERTHROW LTD shows a significant turnaround from a negative net asset position last year to a modestly positive net asset base this year, indicating early signs of recovery. However, the company’s working capital and liquidity remain tight, with current liabilities nearly equaling current assets. The company demonstrates potential but remains vulnerable to cash flow stresses, warranting cautious optimism.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	41,880	48,071	Slight decrease, indicating reduced investment or asset disposals; stable long-term asset base.
Current Assets	43,207	3,008	Dramatic increase, primarily cash or receivables, suggesting improved liquidity or collection.
Current Liabilities	40,251	37,198	Slight increase in short-term obligations; careful monitoring needed to avoid cash flow strain.
Net Current Assets	2,956	-17,536	Positive shift from negative working capital to slight surplus, indicating improved short-term health.
Total Assets Less CL	44,836	30,535	Growth reflects better asset coverage over current liabilities, a positive trend.
Creditors > 1 Year	22,964	37,198	Significant reduction in long-term liabilities, lessening financial burden and improving solvency.
Accruals and Deferred Income	9,508	7,828	Increase implies more expenses or income deferred, which needs management.
Net Assets (Equity)	12,364	-14,491	Turned positive from prior deficit, showing recovery in retained earnings or capital injection.
Employees	1	1	Micro entity with minimal personnel; manageable overheads but limited operational scale.

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3. Diagnosis (What the Financial Data Reveals)

OVERTHROW LTD has exhibited "signs of healing" in its financial health. The company moved from a negative equity and working capital position in 2023 to positive territory in 2024. This improvement suggests effective management of liabilities and possible capital injections or profitable operations that have strengthened the balance sheet.

However, the "symptoms of vulnerability" remain:

• Tight liquidity: Current assets barely cover current liabilities by a small margin (£2,956), which could be a strain if unexpected expenses arise or client payments are delayed.
• Relatively high deferred income/accruals: Could represent uneven revenue recognition or upcoming obligations.
• Small asset base and workforce: Limits operational capacity and scalability, which could affect growth prospects.

Overall, the company is on a "recovery path" but requires ongoing financial discipline and close cash flow monitoring to avoid relapse into distress.

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4. Recommendations (Actions to Improve Financial Wellness)

• Strengthen Cash Reserves: Aim to increase the net current assets buffer to at least 10-15% above current liabilities to create a "healthy cash flow cushion." This can be achieved through better receivables management or short-term financing.
• Manage Payables and Accruals: Negotiate longer payment terms with suppliers or reduce deferred income recognition lag to smooth out cash flow demands.
• Monitor Long-Term Debt: Continue reducing creditors payable after one year to lower financial risk and interest burden.
• Explore Revenue Growth: Given the advertising agency sector’s competitive nature, consider diversifying client base or service offerings to increase turnover.
• Plan for Growth Prudently: With only one employee, operational scalability is limited. Consider controlled hiring or outsourcing to meet demand without excessive fixed costs.
• Regular Financial Reviews: Implement monthly financial health checks (cash flow forecasts, aging reports) to catch potential issues early.

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