PHYSICALLY ACTIVE ( NORTHAMPTONSHIRE) LIMITED

Executive Summary

PHYSICALLY ACTIVE (NORTHAMPTONSHIRE) LIMITED currently exhibits financial fragility with very limited liquidity and capital reserves, placing it at risk of short-term cash flow stress. While compliant and operational, the company must urgently improve working capital and strengthen its equity base to ensure sustainability and build resilience against financial shocks.

PHYSICALLY ACTIVE ( NORTHAMPTONSHIRE) LIMITED - Analysis Report

Company Number: 14772135

Analysis Date: 2025-07-20 11:51 UTC

Financial Health Assessment: PHYSICALLY ACTIVE (NORTHAMPTONSHIRE) LIMITED

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1. Financial Health Score: D

Explanation:
The company's financial health shows signs of fragility. While it remains active and compliant with filing deadlines, the tight margin between current assets and current liabilities, alongside a low net asset base, signals vulnerability. The company is in the micro category, with very limited financial resources and no reported profits disclosed publicly, which constrains its ability to absorb shocks or invest in growth.

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2. Key Vital Signs

Metric	30-Sep-2024	30-Sep-2023	Interpretation
Current Assets	£5,844	£4,283	Slight increase in liquid assets
Current Liabilities	£5,574	£3,257	Significant rise in short-term debts
Net Current Assets (Working Capital)	£270	£1,026	Severely depleted working capital
Shareholders’ Funds (Net Assets)	£271	£1,027	Minimal equity buffer
Number of Employees	1	1	Very small workforce, micro entity

Interpretation:

• Working Capital: The net current assets have dropped sharply from £1,026 to just £270, indicating that current liabilities nearly equal current assets. This is a symptom of cash flow tightness—akin to a patient whose blood pressure is dangerously low.
• Shareholders’ Funds: The net assets are extremely low (£271), showing a thin equity base. This suggests the company has little cushioning against losses or unexpected expenses.
• Growth: Current assets increased modestly, but liabilities grew faster, indicating the company may be relying more on short-term credit or unpaid bills to finance operations—a warning sign of distress.
• Micro Entity Status: The company is very small and limited in scale, reflected in its financials.

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3. Diagnosis

• Liquidity Risk: The company's liquidity is fragile, with current liabilities almost fully offsetting current assets. This "healthy cash flow" is under threat, and the risk of short-term cash crunches is high.
• Capital Weakness: The very low shareholders’ funds highlight limited capital reserves. This is similar to a patient with low immunity—any financial shock could destabilize the business.
• Operational Scale: With only one employee and micro-sized operations, the company has limited capacity to generate revenues or absorb losses.
• Management Changes: Recent director changes and rebranding (name change in 2023) may reflect internal restructuring or strategic repositioning, which sometimes brings transitional instability.
• Profitability Unknown: Absence of a profit and loss account in the filings means we cannot assess profitability or cash generation strength directly; however, low net assets and minimal reserves hint at limited retained earnings.

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4. Recommendations

• Improve Working Capital Management: Tighten control over receivables and payables to increase net current assets. Consider negotiating longer payment terms with suppliers or faster collection from customers to maintain a healthier liquidity buffer.
• Build Capital Reserves: Explore options to inject additional equity or retained earnings to strengthen the net asset base, thereby improving financial resilience.
• Monitor Cash Flow Closely: Implement rigorous cash flow forecasting and management to detect and address liquidity issues proactively.
• Limit Reliance on Short-Term Credit: Avoid escalating current liabilities to unsustainable levels to prevent solvency risk.
• Strategic Review: Assess business model and cost structure critically to identify opportunities for increasing revenues and profitability.
• Stakeholder Communication: Keep transparent communication with shareholders and creditors about financial status and plans to improve health, to maintain confidence.
• Prepare for Growth: As a micro entity, consider gradual scaling with prudent financial controls to avoid overextension.

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