PELUMII LTD

Executive Summary

PELUMII LTD shows signs of financial stabilization with improved liquidity and a return to positive equity after past losses. However, minimal revenue and asset base mean the company remains vulnerable and must focus on scaling operations and managing liabilities prudently. With careful monitoring and strategic growth efforts, the company’s financial health outlook can improve.

PELUMII LTD - Analysis Report

Company Number: 13816247

Analysis Date: 2025-07-29 14:34 UTC

Financial Health Score: C

Explanation: PELUMII LTD shows signs of early-stage recovery with modest net assets and improved working capital but remains financially fragile due to minimal asset base, low turnover, and historical losses. The company is in a delicate state akin to a patient recovering from illness but still vulnerable to shocks.

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Key Vital Signs

Metric	2023 Value	Interpretation
Turnover	Not explicitly stated for 2023, but £1,725 in 2022	Extremely low revenue indicates limited business activity or market traction.
Net Current Assets (Working Capital)	£2,897	Positive working capital is a healthy sign, suggesting short-term obligations can be met.
Net Assets (Equity)	£185	Very low equity; the company has minimal financial cushion to absorb losses or invest.
Fixed Assets	£0	No investment in long-term assets; company may be service-oriented or in nascent stages.
Current Liabilities	£20 (2023), previously £2,712 (2022)	Significant reduction in short-term liabilities indicates improved liquidity management.
Creditors After One Year	£2,712 (2023)	Presence of long-term liabilities; timing and terms need monitoring to avoid distress.
Employees	1 (average)	Very small operation, likely founder-led or single-person business.

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Symptoms Analysis

• Improved Liquidity: The sharp decline in current liabilities from £2,712 in 2022 to £20 in 2023, coupled with increased current assets, reflects better cash flow management and reduced short-term debt pressure. This resembles a patient whose vital signs are stabilizing after treatment.

• Minimal Revenue and Asset Base: The extremely low turnover and zero fixed assets suggest limited operational scale and investment. This may signal a business still in incubation or struggling to grow, akin to a patient with limited physical reserves.

• Equity Recovery: Moving from negative shareholders’ funds (£-1,342) in 2022 to a small positive (£185) in 2023 indicates a recovery from prior losses, but the net asset base remains very thin, indicating vulnerability to any financial setback.

• Long-Term Liabilities: The presence of £2,712 in creditors due after one year in 2023 requires scrutiny. Without corresponding fixed assets, this could represent loans or deferred payments, potentially a burden if cash flow does not improve.

• Micro-Entity Status: As a micro-entity, the company benefits from simplified reporting but likely has limited resources and operational complexity.

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Diagnosis

PELUMII LTD is currently exhibiting early signs of financial stabilization with positive net current assets and a return to positive equity after a prior deficit. The business appears to be small-scale and founder-operated with minimal turnover and no fixed assets. The symptoms point to a company in recovery from initial losses, maintaining healthy short-term liquidity but still lacking robust financial strength or growth momentum. The presence of long-term creditors without asset backing is a mild concern requiring monitoring.

Overall, the financial health is fragile but stable, much like a patient who has recovered from acute illness but remains on a cautious treatment plan.

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Recommendations

1. Increase Revenue Generation
   Focus on scaling up sales and service delivery to build a healthier income stream. This is analogous to strengthening the patient’s immunity to prevent relapse.

2. Manage Liabilities Prudently
   Review the terms and conditions of long-term creditors to ensure repayments are manageable. Avoid accumulating further debt unless matched with asset or cash flow growth.

3. Build Cash Reserves
   Maintain and grow positive working capital to buffer against unexpected expenses or market fluctuations. Healthy cash flow is the lifeblood of financial wellness.

4. Invest in Business Development
   Consider investing in fixed assets or intangible assets (technology, marketing) that can support growth, provided this doesn’t jeopardize liquidity.

5. Regular Financial Monitoring
   Implement frequent financial reviews to detect early signs of distress and adjust strategies promptly.

6. Explore Additional Funding if Needed
   If growth opportunities arise, evaluate equity financing or grants suitable for micro-entities to strengthen the capital base without excessive debt.

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