Company Number: 15435935

Analysis Date: 2025-07-20 15:58 UTC

Financial Health Assessment for PYM ELECTRICS LTD

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1. Financial Health Score: C

Explanation:
Given that PYM ELECTRICS LTD is a newly incorporated company (since January 2024) with its first full financial year ended January 2025, the financial data available is limited. The company has a modest asset base but currently shows a working capital deficit (negative net current assets), which is a symptom of early-stage financial strain. However, shareholders' funds are positive, and there is no indication of insolvency. This places the company in a cautious but stable position, meriting a "C" grade - indicating some symptoms of financial stress but with potential for improvement.

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2. Key Vital Signs

Vital Sign	Value (£)	Interpretation
Fixed Assets	5,911	Indicates investment in tangible long-term assets (equipment, tools). A healthy sign of operational setup.
Current Assets	16,921	Includes cash and debtors; reasonable liquidity base but needs to cover liabilities.
Cash	11,134	Cash on hand is healthy relative to total assets, important for daily operations.
Debtors	5,787	Amount owed to the company; manageable but should be monitored to ensure timely collection.
Current Liabilities	21,581	Short-term debts exceed current assets, resulting in a working capital deficit (-4,660).
Net Current Assets (Working Capital)	-4,660	Negative working capital indicates short-term liquidity pressure; company may struggle to pay bills on time.
Total Assets Less Current Liabilities	1,251	Positive but marginal net assets after adjusting for current liabilities, indicating limited buffer.
Shareholders’ Funds	1,251	Positive equity base; shareholder capital and retained earnings support the business foundation.
Number of Employees	1	Very small scale operation, typical for a micro company.

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3. Diagnosis: What the Financial Data Reveals About Business Health

PYM ELECTRICS LTD is in the early stage of its business lifecycle, as evidenced by incorporation in early 2024 and the first set of unaudited abridged accounts. The company has made initial investments in tangible fixed assets (tools, machinery) necessary for its electrical installation business, which is a positive sign of operational readiness.

However, the negative net current assets (working capital deficit) is a cautionary symptom akin to "shortness of breath" in financial health terms. It suggests that the company’s immediate liabilities exceed short-term assets, potentially placing strain on the company’s ability to meet short-term obligations without relying on additional capital injection or improved cash flow management.

The cash position is relatively healthy, providing some breathing room, and the company’s shareholders’ funds are positive, indicating that the business has some equity cushion. The single director and sole shareholder structure suggest centralized control, which can speed decision-making but may also concentrate risk.

Overall, the company shows "symptoms" of early-stage liquidity challenges but no immediate signs of insolvency or critical distress. This is consistent with many startups that invest upfront and build operational capacity before generating strong revenues and cash inflows.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Working Capital Management:
  Focus on accelerating debtor collections and negotiating longer payment terms with suppliers to reduce the working capital gap. This will help alleviate short-term liquidity pressure.

• Monitor Cash Flow Closely:
  Maintain a cash flow forecast to anticipate periods of tight liquidity. Given the modest cash reserves, avoid unnecessary expenditures and build a buffer for unexpected costs.

• Seek Additional Capital if Needed:
  If working capital issues persist, consider injecting more equity or arranging short-term financing to support operational needs without risking payment defaults.

• Build Customer Base and Revenue Streams:
  As a newly established electrical installation business, prioritize marketing and securing contracts to generate steady revenue, which will improve overall financial health.

• Maintain Financial Controls and Reporting:
  Even though accounts are abridged and unaudited, ensure robust bookkeeping and consider professional advice to prepare for future financial filings and potential audits.

• Regular Financial Health Check-ups:
  Treat financial reviews like medical check-ups—early detection of issues allows for timely intervention. Keep a close eye on liquidity ratios and asset utilization.

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