Company Number: 12625084

Analysis Date: 2025-07-20 14:11 UTC

Financial Health Assessment for RAISE IT UP LIMITED (as at 31 May 2024)

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1. Financial Health Score: D (Poor Health)

Explanation:
The company's financial position shows clear symptoms of distress. Key indicators such as negative net assets, large current liabilities exceeding current assets, and a significant decline in intangible asset value suggest serious financial strain. While the company remains active, these "vital signs" highlight an urgent need for remedial action to restore financial stability.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Net Assets (Equity)	-280,555	Negative equity indicates liabilities exceed assets; an unhealthy "balance sheet" condition.
Current Assets	13,788	Very low current assets, barely covering short-term needs.
Current Liabilities	567,818	Very high short-term obligations; "shortness of breath" in liquidity terms.
Net Current Assets (Working Capital)	-554,030	Strong negative working capital signals cash flow problems and difficulty meeting immediate debts.
Intangible Assets	254,010	Significant drop from prior year due to revaluation, may affect future earning capacity.
Cash on Hand	277	Critically low cash reserves, indicating poor liquidity and potential inability to meet urgent payments.
Shareholders’ Funds	-280,555	Reflects accumulated losses overshadowing initial and subsequent investments.

Additional insights:

• The company’s fixed assets have decreased sharply from £859,889 (2023) to £273,383 (2024), largely due to amortisation/revaluation of intangible assets, signaling a decline in asset base.
• The company employs only 1 staff member, down from 3 previously, possibly reflecting cost-cutting or operational scaling down.

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3. Diagnosis

The company is exhibiting classic symptoms of financial distress:

• Balance Sheet Weakness: Negative net assets and shareholder funds indicate the company’s liabilities significantly exceed its assets, which is akin to a patient with organ failure—critical and requiring immediate intervention.
• Liquidity Crisis: The severe shortfall in working capital and minimal cash reserves suggest the company may face difficulties in meeting its short-term obligations, risking insolvency if not addressed.
• Asset Impairment: A large write-down in intangible assets (likely app development or trademarks) signals impaired future earnings potential or failed investments, akin to a loss of vital organ function.
• Declining Operational Capacity: Reduction in employee numbers could be a response to financial pressure, but may also impact operational output and revenue generation.

Overall, the company is in a fragile financial state with a high risk of cash flow shortages and solvency issues. This condition requires swift and decisive management attention.

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4. Recommendations

To improve financial wellness and stabilize the company’s health, the following actions are recommended:

• Immediate Cash Flow Management:

  • Negotiate extended payment terms with creditors to ease short-term cash pressures.
  • Accelerate collection of outstanding debts (debtors) to boost liquidity.
  • Explore short-term financing options cautiously to cover urgent liabilities.

• Asset Review and Rationalisation:

  • Assess the feasibility and value of intangible assets; consider whether further impairments or disposals are necessary.
  • Review tangible assets for potential sale or leaseback arrangements to raise cash.

• Cost Control and Operational Efficiency:

  • Continue streamlining operations to reduce fixed costs without compromising critical business functions.
  • Consider strategic partnerships or outsourcing to improve cost-effectiveness.

• Strategic Financial Restructuring:

  • Engage with financial advisors and possibly creditors to explore restructuring options, such as equity injections or debt refinancing.
  • Prepare a realistic business plan demonstrating a clear path to profitability and liquidity restoration.

• Transparency and Reporting:

  • Maintain up-to-date and comprehensive financial reporting to monitor progress and support stakeholder confidence.

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