PHYSIO RELIEF UK LTD

Executive Summary

PHYSIO RELIEF UK LTD is currently in good financial health with solid growth in net assets and working capital, reflecting operational improvements and sound financial management. The company shows no signs of distress, maintaining compliance and a clean balance sheet. To sustain and build on this, prudent investment, cash flow vigilance, and governance enhancements are recommended.

PHYSIO RELIEF UK LTD - Analysis Report

Company Number: 13587753

Analysis Date: 2025-07-20 11:01 UTC

Financial Health Assessment of PHYSIO RELIEF UK LTD

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1. Financial Health Score: B

Explanation:
PHYSIO RELIEF UK LTD demonstrates a solid financial footing for a micro-entity in the healthcare sector. The company shows a positive and improving net asset position, healthy working capital, and no overdue filings, all of which are encouraging signs. However, as a young company (incorporated in 2021) with a small employee base and relatively modest asset size, it still faces typical early-stage growth risks and limited financial depth. Hence, a "B" grade reflects good current health with room for strengthening resilience.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Net Assets (Shareholders' Funds)	35,741	7,602	Strong growth in equity, indicating retained profits or capital injection.
Fixed Assets	20,308	0	Investment in long-term assets, a positive sign of business establishment.
Current Assets	19,365	5,210	Significant improvement, suggesting better liquidity.
Current Liabilities	3,932	6,670	Decrease in short-term obligations, improving solvency.
Net Current Assets (Working Capital)	15,433	-1,460	Healthy working capital indicating ability to cover short-term debts comfortably.
Average Employees	2	1	Small but growing workforce, typical for micro business.
Filing Status	No overdue	No overdue	Compliance is up-to-date, reducing risk of penalties or reputational damage.

Interpretation:

• The company’s working capital is the "pulse" of its liquidity health. The positive swing from negative to +15,433 GBP indicates a robust cash flow and ability to meet short-term obligations—akin to a patient recovering a steady heartbeat.
• The increase in fixed assets signals investment in operational capacity, a sign the company is building "muscle" for future growth.
• The growth in net assets suggests the company is accumulating financial strength and reserves, an internal "immune system" against shocks.
• The reduction in liabilities shows the company is "shedding" debt stress, improving overall stability.

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3. Diagnosis

PHYSIO RELIEF UK LTD presents as a financially healthy micro-business with strong signs of growth and improving liquidity. The transition from negative working capital in 2023 to positive in 2024 is a key symptom of recovering operational efficiency and financial management discipline. The company’s balance sheet shows no long-term debt, indicating a clean capital structure free from burdensome financial obligations.

However, being a young company with a small asset base and workforce, it remains vulnerable to market fluctuations and operational risks common in early-stage businesses. The reliance on a majority shareholder and director control consolidated in one individual is typical but requires sound governance to avoid concentration risk.

No symptoms of financial distress such as overdue filings, negative equity, or excessive short-term liabilities are evident. The company’s compliance with filing deadlines and statutory requirements further supports its healthy status.

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4. Recommendations

• Maintain healthy cash flow: Continue to monitor receivables and payables closely to sustain positive net current assets, ensuring the company remains liquid and able to cover short-term needs.
• Diversify shareholder base: Consider gradually diversifying ownership or strengthening corporate governance practices to mitigate concentration risk and enhance investor confidence.
• Invest prudently in growth: The fixed asset increase is positive; ensure investments support scalable revenue growth without overextending resources.
• Build reserves: Retain earnings to build a financial buffer ("financial immunity") to weather future uncertainties or economic downturns.
• Regular financial review: Implement routine financial health checks (quarterly) to detect early warning signs of distress and adjust strategy proactively.
• Enhance workforce capacity: As the business grows, carefully expand the team to support operational demands without compromising financial stability.

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