PRIME SAFE STORAGE LTD

Executive Summary

PRIME SAFE STORAGE LTD is facing financial distress characterized by negative net assets and worsening liquidity, signaling an urgent need for cash flow management and capital reinforcement. While administratively compliant, the company must act swiftly to stabilize its finances and avoid potential insolvency. Immediate focus on cost control, financing options, and strategic review will be vital for financial recovery.

PRIME SAFE STORAGE LTD - Analysis Report

Company Number: 13514259

Analysis Date: 2025-07-29 20:53 UTC

Financial Health Assessment: PRIME SAFE STORAGE LTD

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1. Financial Health Score: D

Explanation:
The company exhibits signs of financial distress, with negative net asset values that have worsened over the last financial year. The lack of fixed assets and minimal current assets alongside growing liabilities indicate a fragile financial position. While the company remains active and compliant with filing deadlines, its financial "vital signs" reflect symptoms of liquidity strain and potential solvency concerns.

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2. Key Vital Signs

Metric	2023 Value (£)	2022 Value (£)	Interpretation
Fixed Assets	0	0	No long-term investments or property; limited capital base.
Current Assets	0	3	Almost no liquid assets or receivables; very limited short-term financial buffer.
Current Liabilities	881	200	Increase in short-term debts; rising pressure on cash flow.
Net Current Assets	-881	-197	Negative working capital; company may struggle to meet immediate obligations ("cash flow distress").
Total Assets Less Current Liabilities	-881	-197	Overall asset coverage insufficient to cover current debts.
Creditors (long-term)	0	0	No long-term liabilities reported separately beyond current creditors.
Net Assets (Shareholders' Funds)	-1,081	-305	Negative equity indicates accumulated losses or financial deficits; owners' stake is eroding.
Employees	1	1	Minimal workforce; small operational scale.

Vital Signs Interpretation:

• The company's "heartbeat" is weak: negative net assets and declining working capital signal financial strain.
• The rise in current liabilities with negligible current assets means the company may face difficulties paying bills on time.
• Absence of fixed assets suggests no physical capital cushion to leverage or sell in times of need.

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3. Diagnosis: Financial Condition Assessment

PRIME SAFE STORAGE LTD is currently in a precarious financial state resembling a patient with declining vital signs and symptoms of distress. The negative net asset position and worsening net current assets suggest the company is operating with financial deficits, possibly funded through short-term liabilities or external support.

The absence of fixed assets implies no tangible collateral to support borrowing or investment, and the increase in current liabilities without corresponding assets indicates potential liquidity issues. This financial "symptom" could translate to difficulty in meeting short-term obligations, risking supplier relationships and operational continuity.

The company appears to be a very small-scale operation (micro-entity) with minimal employees and turnover, which may limit its ability to absorb financial shocks. While compliance with filing deadlines is a positive sign of administrative health, the financials indicate an urgent need for intervention to restore solvency and stabilize cash flow.

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4. Recommendations: Improving Financial Wellness

1. Cash Flow Management:

   • Prioritize collection of any outstanding receivables and negotiate extended payment terms with suppliers to ease liquidity pressure.
   • Implement tight cash flow forecasting to anticipate shortfalls and manage expenses proactively.

2. Cost Control and Operational Efficiency:

   • Review operating expenses to identify areas for cost reduction without compromising core business activities.
   • Explore automation or outsourcing options to maintain service levels with minimal overhead.

3. Capital Injection or Financing:

   • Consider equity injection from the shareholder to shore up net assets and provide a cash buffer.
   • Explore short-term financing options (e.g., overdrafts, invoice financing) cautiously to cover immediate liabilities but avoid excessive debt accumulation.

4. Strategic Business Review:

   • Evaluate business model viability and market conditions to identify growth opportunities or necessary pivots.
   • Develop a turnaround plan with clear financial targets and milestones.

5. Regular Monitoring:

   • Establish key financial metrics monitoring (liquidity ratios, working capital) with monthly reviews to detect early warning signs.
   • Engage professional financial advice if needed to guide restructuring and recovery efforts.

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Medical Analogy Summary:
PRIME SAFE STORAGE LTD’s financial vitals show signs of "shock" with low liquidity and negative equity—a warning that without immediate "treatment" (cash flow management and capital support), the company's financial health may deteriorate further. Prompt and strategic intervention is critical to stabilize and recover.

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