PIPPIN PROJECT LIMITED

Executive Summary

Pippin Project Limited exhibits typical early-stage financial characteristics with tight liquidity and minimal equity. Strengthening cash reserves and working capital management, alongside capital infusion, will be essential to improve financial health and support sustainable growth.

PIPPIN PROJECT LIMITED - Analysis Report

Company Number: 14778424

Analysis Date: 2025-07-20 17:08 UTC

Financial Health Assessment for PIPPIN PROJECT LIMITED

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1. Financial Health Score: C

Explanation:
The company shows initial signs of life as a newly incorporated entity with a very modest financial footprint. While it is currently solvent, its financial metrics suggest a fragile health status typical of start-ups or very young companies. The narrow margin between current assets and liabilities and a minimal equity base indicate vulnerability to cash flow shocks. This corresponds to a "C" grade, reflecting the need for close financial monitoring and proactive management to avoid distress.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	13,638	Primarily debtors (£12,011) and cash (£1,627). Cash balance very low relative to liabilities, indicating liquidity risk.
Current Liabilities	13,473	Nearly equal to current assets, indicating tight working capital.
Net Current Assets (Working Capital)	165	Positive but minimal. Suggests fragile short-term liquidity; "borderline healthy cash flow".
Shareholders' Funds (Equity)	165	Very low equity, reflecting minimal capital invested and retained earnings.
Company Age	1 year	Startup phase; financials reflect early stage with limited operational history.
Director and PSC	Single director owns 75-100% shares and controls voting rights, indicating concentrated control and decision-making.

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3. Diagnosis

The financial "vital signs" for PIPPIN PROJECT LIMITED reveal a company in its infancy with very limited financial resources. The balance sheet shows a near break-even position between current assets and liabilities, with virtually no buffer to absorb financial shocks or delays in receivables collection.

• Symptoms of distress:

  • Low cash reserves (£1,627) relative to creditors (£13,473) pose a liquidity risk if debtors are slow to pay.
  • The company is heavily reliant on its debtors being paid promptly to meet short-term obligations.
  • Minimal equity (£165) indicates that the business is at a nascent stage, with little retained earnings or capital cushion.
  • The director is the sole significant controller, which can be positive for swift decisions but also concentrates risk.

• Underlying business health:
  The company has not yet demonstrated operational profitability or cash generation capability visible from the data. The absence of turnover or profit figures (not disclosed in the small company filleted accounts) means we cannot evaluate profitability, but the tight working capital suggests a "break-even" or pre-revenue phase. The company is likely still investing in establishing its business model.

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4. Recommendations

To improve financial wellness and avoid symptoms of financial distress, the company should consider the following actions:

1. Improve Cash Reserves:

   • Build a healthier cash buffer by either increasing initial capital injection or accelerating debtor collection.
   • Consider short-term financing options (e.g., overdraft or invoice factoring) to manage liquidity.

2. Strengthen Working Capital Management:

   • Tighten credit terms and enhance debtor monitoring to reduce days sales outstanding.
   • Negotiate extended payment terms with creditors to better align cash inflows and outflows.

3. Capital Injection / Equity Growth:

   • Consider additional capital investment from the director or external investors to increase equity and provide a financial cushion.

4. Financial Planning and Forecasting:

   • Implement detailed cash flow forecasting to anticipate shortfalls and plan mitigating actions.
   • Track operational performance metrics as the business develops to identify early warning signs.

5. Governance and Risk Management:

   • Although the director holds full control, establishing a small advisory board or seeking external advice may improve decision-making and risk oversight.

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Executive Summary

Pippin Project Limited is in the early startup phase with a fragile financial condition characterized by minimal net current assets and equity. The company's cash reserves are low, exposing it to liquidity risk if debtors delay payments. Immediate focus on improving cash flow management and strengthening equity will be critical to ensure financial stability and support growth.