PLUMB WORX LTD

Executive Summary

PLUMB WORX LTD exhibits financial distress characterized by negative net assets and severely constrained liquidity, signaling urgent need for cash flow management and operational review. While governance and compliance remain intact, the company must take immediate corrective actions to prevent insolvency and restore financial wellness.

PLUMB WORX LTD - Analysis Report

Company Number: 13785903

Analysis Date: 2025-07-20 17:09 UTC

Financial Health Assessment of PLUMB WORX LTD as at 31 December 2023

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1. Financial Health Score: D

Explanation:
The company shows a concerning financial position with negative net assets (£-2,445) and a net current liabilities position. These symptoms indicate financial distress, though the business is still active and compliant with filing requirements. The score reflects early warning signs that require urgent attention to avoid worsening financial health.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Fixed Assets	£1,237	Small investment in long-term assets, typical for a micro company in plumbing services.
Current Assets	£632	Very low current assets, indicating limited liquid resources.
Current Liabilities	£4,314	Significant short-term debts exceeding current assets, indicating liquidity stress.
Net Current Assets (Working Capital)	-£3,682	Negative working capital signals potential difficulty meeting short-term obligations.
Total Assets Less Current Liabilities	-£2,445	Negative figure confirms liabilities exceed assets, a critical symptom of financial strain.
Net Assets / Shareholders Funds	-£2,445	Shareholders' equity is negative, implying accumulated losses or capital depletion.
Employee Count	0	No employees, possibly indicating a very small or dormant operational structure.

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3. Diagnosis

Symptom Analysis:
PLUMB WORX LTD’s financial statements reveal a "patient" with signs of liquidity and solvency distress. The negative net assets position is akin to a patient whose vital organs are underperforming — the company’s liabilities outweigh its assets, which is unsustainable long-term. The substantial current liabilities compared to minimal current assets suggest a "cash flow blockage," meaning the company may struggle to pay suppliers or creditors promptly.

Despite being a micro-entity with minimal operational scale (no employees), the financial strain could arise from initial investment costs, delayed receivables, or operational losses. The absence of employees may reflect outsourcing or inactivity but also limits operational capacity.

The company's compliance with filing deadlines and its active status indicate governance is currently stable, which is a positive sign. However, the financial indicators are "red flags" that require prompt intervention.

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4. Prognosis

If the current financial trends persist without corrective action, PLUMB WORX LTD risks worsening liquidity problems, potential creditor pressure, and ultimately, insolvency. However, as a micro-entity, there is still room for recovery through focused financial restructuring, cost control, or capital injection.

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5. Recommendations

1. Immediate Cash Flow Management:

   • Prioritize collection of any outstanding debts and negotiate longer payment terms with creditors to ease current liabilities pressure.
   • Consider short-term financing options or owner capital contributions to restore liquidity.

2. Financial Restructuring:

   • Review and reduce unnecessary expenditure to conserve cash reserves.
   • Assess whether fixed assets can be leveraged or sold to improve cash position.

3. Business Activity Review:

   • Reevaluate operational scale—consider whether current business model is viable without employees or if contracting arrangements need adjustment.

4. Engage Professional Advice:

   • Seek expert financial and legal advice to explore restructuring options before the financial health deteriorates further.

5. Monitor Financial Metrics Regularly:

   • Implement monthly financial reviews focusing on working capital, cash flow, and debt levels to detect early warning signs promptly.

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Medical Analogy Summary

PLUMB WORX LTD is currently exhibiting "symptoms of financial distress" with a "negative balance sheet pulse" indicating that liabilities outweigh assets. The company’s "cash flow arteries" are constricted, limiting its ability to meet immediate obligations. Prompt "financial first aid" and strategic management are necessary to stabilize and improve the company's financial health before the condition becomes critical.

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