Company Number: 12732450

Analysis Date: 2025-07-20 17:19 UTC

Financial Health Assessment for PURSUE PR LIMITED as of 31 July 2024

---

1. Financial Health Score: C

Explanation:
PURSUE PR LIMITED shows mixed signals in its financial "vital signs." While the company remains solvent with positive net assets, there has been a noticeable decline in net current assets and shareholders’ funds in the latest year compared to prior periods. This decline suggests emerging "symptoms of financial distress" such as reduced liquidity and shrinking equity buffers. However, the company is not in immediate danger and remains operationally stable, warranting a moderate grade.

---

2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Current Assets	26,204	63,863	Sharp reduction in liquid assets suggesting tighter cash flow.
Current Liabilities	16,222	38,171	Liabilities also decreased but less proportionally.
Net Current Assets	9,982	25,692	Working capital shrank significantly, indicating less buffer.
Net Assets (Equity)	9,582	25,292	Decline in net assets signals erosion of shareholder value.
Share Capital	1	1	Minimal share capital, typical for micro-entity.
Average Employees	4	3	Slight increase in staffing, may affect cost base.

Interpretation:

• Liquidity: The "healthy cash flow" indicated by current assets has deteriorated, possibly limiting the company's ability to cover short-term obligations comfortably.
• Solvency: Positive net assets indicate the company is solvent, but the equity decline is a warning symptom of potential financial strain.
• Operational Size and Cost: Small increase in employees may suggest investment in growth, but with reduced assets, this could pressure finances.

---

3. Diagnosis

PURSUE PR LIMITED is currently in a stable but weakening financial condition. The substantial drop in current assets and net assets over the last financial year signals that the company has been drawing down its reserves or facing increased operational costs that have not been matched by income growth. The company is not insolvent, but the "symptom of distress"—shrinking liquidity and equity—requires attention.

The absence of audit requirements (micro-entity exemption) and minimal share capital are typical for a small private limited company at this stage. The director, Miss Sarah Ann Kelly, holds full control, which allows for agile decision-making but also concentrates risk.

---

4. Recommendations

To improve financial wellness and "restore the heartbeat" of the company’s finances, consider the following actions:

1. Cash Flow Management:

   • Monitor daily cash flows rigorously to avoid liquidity crunches.
   • Negotiate better payment terms with creditors to ease short-term liabilities.
   • Accelerate debtor collections where possible.

2. Cost Control:

   • Review staffing and overhead costs to align with current revenue streams.
   • Avoid unnecessary expenses while maintaining capacity for growth.

3. Revenue Enhancement:

   • Diversify client base and explore new market opportunities in public relations and communications to stabilize income.
   • Leverage digital marketing or consultancy services to increase margins.

4. Financial Buffer:

   • Consider injecting additional capital or arranging short-term financing to strengthen net assets and working capital.
   • Maintain clear financial forecasts to anticipate and prepare for downturns.

5. Governance and Reporting:

   • Continue timely filing and consider preparing more detailed management accounts internally to detect financial changes early.
   • Engage with a financial advisor to tailor strategies for growth and risk mitigation.

---