Company Number: 13382676

Analysis Date: 2025-07-29 16:15 UTC

Financial Health Assessment for THE CYPRUS BARBEQUE LTD

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1. Financial Health Score: D

Explanation:
The company exhibits symptoms of financial distress with negative net assets and deteriorating working capital. Despite being operational and filing accounts timely, the financial condition points to vulnerability that requires urgent attention.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Fixed Assets	59,020	40,678	Investment in long-term assets increased, potentially positive
Current Assets	70,794	65,706	Short-term assets slightly increased, but not enough to cover liabilities
Current Liabilities	101,781	59,344	Significant increase, indicating rising short-term debts
Net Current Assets	-30,987	6,362	Shift from positive to negative working capital; cash flow stress sign
Total Assets Less Current Liabilities	28,033	47,040	Reduction indicates weakening asset coverage after current debts
Creditors due after 1 year	49,748	61,015	Some reduction in long-term liabilities, but still material debt
Net Assets / Shareholders’ Funds	-21,715	-13,975	Negative equity worsening, a key red flag for financial health

Additional Notes:

• Share Capital is minimal at £100, indicating limited equity buffer.
• Average employees rose from 7 to 22, suggesting expansion but also increased overheads.
• Directors have advanced funds (£8,371) in 2023, a possible sign of reliance on internal financing.

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3. Diagnosis: Financial Condition Overview

The financial "vital signs" reveal symptoms akin to a patient with a weakening heart—THE CYPRUS BARBEQUE LTD is showing signs of financial strain, particularly in liquidity and solvency. The negative net current assets in 2023 indicate the company’s short-term obligations exceed its short-term resources, akin to a cash flow "arrhythmia" that can disrupt day-to-day operations if not managed.

The worsening net asset position and negative shareholders' funds indicate "structural weakness" in the company’s balance sheet. This is often a symptom of accumulated losses or insufficient capital injection, reducing the company's ability to absorb shocks or invest in growth.

The increase in fixed assets might be a positive sign of investment in the business’s infrastructure, but without corresponding improvements in liquidity, it can also tie up cash unnecessarily, worsening working capital issues.

Overall, the company is in a fragile state—still "alive" and operational but with clear distress signals that, if untreated, could lead to financial failure.

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4. Recommendations: Actions to Restore Financial Wellness

• Improve Liquidity Management:
  Address the negative working capital by negotiating better payment terms with creditors, speeding up debtor collections, and managing inventory tightly to maintain a "healthy cash flow pulse."

• Capital Injection or Debt Restructuring:
  Consider bringing in fresh equity or refinancing existing debts to reduce creditor pressure. This would provide a stronger "immune system" to withstand financial shocks.

• Cost Control and Operational Efficiency:
  Review overhead costs especially with the increased headcount; ensure business expansion is matched with revenue growth to avoid unnecessary strain.

• Financial Monitoring Dashboard:
  Implement regular financial health checks focusing on cash flow forecasts, profitability, and balance sheet strength to detect early warning signs before they escalate into serious illness.

• Seek Professional Advice:
  Engage with accountants or financial advisors for detailed cash flow planning, tax efficiency, and exploring government grants or business support schemes.

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