REBLUM LTD

Executive Summary

REBLUM LTD, a newly formed micro-entity, currently faces liquidity challenges with negative working capital and net assets, signaling early financial distress. Immediate actions to improve cash flow and capital structure are essential to stabilize its financial health and ensure operational viability. With focused management and financial discipline, the company can recover and build a stronger foundation for growth.

REBLUM LTD - Analysis Report

Company Number: 15146084

Analysis Date: 2025-07-20 17:37 UTC

Financial Health Assessment for REBLUM LTD

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1. Financial Health Score: Grade D

Explanation:
REBLUM LTD shows signs of early financial distress despite being a newly incorporated micro-entity. The company exhibits a negative net current asset position (working capital deficit), indicating liquidity challenges. This is a critical symptom that requires immediate attention to avoid further deterioration. The absence of employees and limited asset base reflect a startup stage but current liabilities exceed current assets, a sign of potential cash flow strain.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	48,251	Moderate cash or receivable assets for a startup; however, not sufficient to cover short-term liabilities.
Current Liabilities	78,905	Obligations due within one year exceed available liquid assets, creating a liquidity gap.
Net Current Assets (Working Capital)	-30,654	Negative working capital indicates the company may struggle to meet short-term obligations as they fall due.
Net Assets (Equity)	-30,654	Negative net worth signals that liabilities exceed assets, a symptom of financial strain or startup investment.
Employees	0	No staff employed, common for early-stage micro companies but may limit operational capacity.

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3. Diagnosis

REBLUM LTD currently exhibits symptoms of financial distress typical of an early-stage startup but with warning signs that require swift action. The negative working capital and net asset position mean the company’s short-term debts exceed its liquid assets and overall value, indicating potential liquidity and solvency issues.

• The company’s liquidity is compromised — a “heart condition” for any business — as it does not have enough current assets to cover immediate liabilities.
• The negative equity position suggests that the business has either invested heavily upfront or incurred losses not yet offset by profits or capital injections.
• Being a micro-entity with no employees means operational scale is minimal, so cash flow generation capacity is likely limited.
• Control is concentrated in two individuals, which may help in agile decision-making but also concentrates risk.

Overall, the financial “vitals” show a fragile condition that, if untreated, could lead to insolvency risks.

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4. Recommendations

To improve financial wellness and avoid progression toward critical failure, the company should consider the following steps:

• Improve Liquidity: Seek additional capital injections or shareholder loans to restore positive working capital. Alternatively, negotiate extended payment terms with creditors.
• Cash Flow Management: Implement strict cash flow monitoring and forecasting to prevent shortfalls. Prioritize collection of receivables and delay non-essential expenditures.
• Cost Control: Maintain a lean cost structure, especially since there are currently no employees, to conserve cash.
• Revenue Generation: Accelerate business development efforts given the industry focus on advertising and software development to start generating income streams.
• Financial Oversight: Establish regular financial reviews and possibly engage an accountant or financial advisor to guide early-stage financial decisions.
• Risk Management: Prepare contingency plans for potential cash shortfalls and consider options like invoice financing or short-term credit lines as a buffer.

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Medical Analogy Summary

REBLUM LTD is currently in a “pre-disease” state, showing symptoms like negative working capital — akin to a patient with low blood pressure warning signs. Immediate intervention is required to stabilize the financial pulse and avoid slipping into “financial shock” (insolvency). With prompt treatment — capital infusion and tight cash flow management — the company’s prognosis can improve.

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