PRIDE MOBILITY HOME STORE LIMITED

Executive Summary

PRIDE MOBILITY HOME STORE LIMITED is in the early stages of operation but shows significant financial strain, with negative net assets and critically low cash reserves indicating liquidity challenges. While supported by its parent company, urgent actions to improve cash flow, control costs, and secure funding are essential to stabilise and restore financial health. The outlook depends strongly on the company’s ability to convert receivables into cash and manage liabilities effectively.

PRIDE MOBILITY HOME STORE LIMITED - Analysis Report

Company Number: 14990997

Analysis Date: 2025-07-29 15:06 UTC

Financial Health Assessment for PRIDE MOBILITY HOME STORE LIMITED

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1. Financial Health Score: D

Explanation:
The company's financial vital signs indicate a precarious financial condition. The negative net assets and net current assets reveal significant liquidity and solvency challenges. While the company is newly incorporated and may be in a start-up phase, the current financial position shows symptoms of financial distress that require urgent attention.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	35,170	Low cash (only £1), mostly debtors and VAT.
Cash	1	Critically low cash on hand — "heart" of liquidity barely beating.
Debtors	35,169	High receivables, which may take time to convert to cash.
Current Liabilities	126,884	Large short-term debts due, a significant "pressure" on cash flow.
Net Current Assets	-91,714	Negative working capital — symptoms of liquidity strain.
Fixed Assets	14,045	Tangible assets present but relatively small.
Net Assets	-81,180	Negative equity — indicates insolvency on balance sheet.
Shareholders’ Funds	-81,181	Owners' investment is currently in deficit.

Other aspects:

• The company is classified as a Small company, with a relatively short trading history (incorporated July 2023).
• Ultimate control by Pride Mobility Products Limited (75-100% shareholding), which may provide financial backing.
• No overdue filings, showing compliance with statutory obligations.

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3. Diagnosis

Symptoms Analysis:

• The company exhibits classic symptoms of liquidity distress: very low cash reserves relative to current liabilities and a large negative net current asset position.
• The negative net assets and shareholders' funds indicate the company is technically insolvent on a balance sheet basis, meaning liabilities exceed assets.
• High trade creditors and significant amounts owed to group undertakings (£95,786) suggest reliance on intra-group funding to maintain operations. This could be a "life support" from the parent company but may not be sustainable without improvement.
• The company is in early stages with a short trading period — losses and negative equity are not uncommon initially but require a clear path to profitability and cash flow improvement.
• The directors' statement on going concern implies confidence backed by the group, but this remains a risk point for external stakeholders.
• The low cash on hand (only £1) is a red flag for immediate operational liquidity — the business may struggle to meet day-to-day expenses without further funding or receivables collection.

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4. Recommendations

To restore financial health and build resilience, the company should consider the following actions:

1. Improve Liquidity Management:

   • Accelerate debtor collections to convert receivables into actual cash—"revive the heartbeat" of cash flow.
   • Negotiate extended payment terms with creditors to reduce immediate cash outflows and ease short-term pressure.

2. Seek Additional Funding:

   • Engage with the parent company (Pride Mobility Products Limited) for additional equity injections or short-term loans to improve working capital.
   • Explore external financing options if needed, but cautiously to avoid over-leveraging.

3. Cost Control and Operational Efficiency:

   • Review operating expenses and overheads to cut non-essential costs and extend the cash runway.
   • Monitor inventory and procurement carefully to avoid tying up cash unnecessarily.

4. Strategic Planning for Revenue Growth:

   • Focus on sales strategies to increase turnover and improve margins.
   • Consider diversifying product offerings or expanding market reach to accelerate revenue generation.

5. Regular Financial Monitoring:

   • Implement robust cash flow forecasting and financial reporting to detect symptoms of distress early and respond promptly.
   • Communicate regularly with stakeholders to maintain confidence.

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Medical Analogy Summary

The company’s financial condition resembles a patient presenting with severe dehydration (extremely low cash) and systemic weakness (negative net assets). Immediate rehydration (cash infusion) and management of ongoing losses are essential to stabilize and improve health. Without these interventions, the risk of financial collapse remains high.

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