Company Number: 14123083

Analysis Date: 2025-07-29 12:17 UTC

Financial Health Assessment for POWER & PAGE LTD

---

1. Financial Health Score: C

Explanation:
POWER & PAGE LTD demonstrates some positive aspects such as growth in net assets and stable employee numbers, but the company exhibits concerning signs in its liquidity position, notably a large imbalance between current assets and current liabilities. The financials suggest a need for attention to working capital management and cash flow to ensure sustainable operations.

---

2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	2,976	Slight reduction from the previous year, indicating minimal capital investment or asset disposal.
Current Assets	3,246	Increased from prior year, indicating improved short-term asset base.
Current Liabilities	29,871	Significant short-term obligations, substantially higher than current assets, indicating liquidity pressure.
Net Current Assets (Working Capital)	-26,625	Negative working capital—a critical symptom of financial strain; short-term debts exceed liquid assets by a large margin.
Net Assets (Shareholders’ Funds)	23,649	Positive and improving net assets, indicating accumulation of equity, but this is overshadowed by liquidity issues.
Average Number of Employees	3	Stable workforce, suggesting operational consistency.

---

3. Diagnosis

"Symptoms" Observed:

• The company has a healthy accumulation of net assets (£23,649), which is a positive sign akin to a patient with a decent baseline strength or reserve.
• However, the negative working capital (current assets £3,246 vs current liabilities £29,871) is a major "symptom of distress." This indicates the company may struggle to meet its short-term obligations as they fall due, potentially leading to cash flow difficulties.
• Fixed assets have slightly decreased, which may imply limited reinvestment or disposal of assets, possibly to manage cash flow.
• The company has maintained a small but stable team, which is good for operational continuity.

Underlying Causes:

• The large current liabilities relative to current assets may stem from delayed receivables, high short-term borrowings, or accrued expenses.
• The company’s micro-entity status and new incorporation (May 2022) mean it is still relatively young and possibly in a growth or setup phase, which could explain working capital challenges.
• The shareholders’ funds are positive and increasing, which suggests owners are injecting capital or profits are being retained, but this has yet to translate into adequate liquidity.

---

4. Recommendations

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

• Improve Liquidity Management:

  • Accelerate collection of receivables.
  • Negotiate longer payment terms with suppliers to better align cash inflows and outflows.
  • Review and reduce unnecessary short-term liabilities where possible.

• Cash Flow Forecasting:

  • Implement rigorous cash flow forecasting to anticipate liquidity gaps and manage working capital proactively.

• Capital Injection or Financing:

  • Consider equity injection from shareholders or secure longer-term financing to reduce pressure on current liabilities.

• Asset Utilisation:

  • Review fixed assets for potential sale or more effective use to generate cash.

• Operational Efficiency:

  • Maintain stable staffing but explore efficiencies to reduce costs without impacting service quality.

---