REEN LIMITED

Executive Summary

REEN LIMITED’s financial health shows significant liquidity challenges and a reduction in net assets, indicating financial distress. Immediate focus on cash flow improvement and cost control is crucial to restore stability. Without intervention, the company risks further deterioration of its financial position.

REEN LIMITED - Analysis Report

Company Number: 14221005

Analysis Date: 2025-07-20 16:19 UTC

Financial Health Assessment: REEN LIMITED (As of 31 July 2024)

---

1. Financial Health Score: D

Explanation:
REEN LIMITED's financial data reveals signs of distress, especially in liquidity and working capital management. The company is classified as a micro-entity with minimal resources and no employees. The sharp decline in current assets and net current assets between 2023 and 2024 indicates increasing difficulties in meeting short-term obligations, meriting a low grade for financial health.

---

2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	1,350	1,800	Slight decrease, indicating possible asset disposal or depreciation.
Current Assets	24	3,250	Dramatic drop, signaling very low liquid assets/cash available.
Current Liabilities	464	2,987	Large reduction in short-term debts, but still higher than current assets.
Net Current Assets	-440	263	Negative working capital in 2024 indicates liquidity strain.
Total Assets less Current Liabilities	910	2,063	Declining net asset base, reducing financial cushion.
Net Assets / Shareholders Funds	910	2,063	Halved, showing diminished equity and financial stability.
Employees	0	0	No staff; possibly a dormant operational status or minimal activity.

Interpretation:

• Healthy cash flow is absent; the company’s current assets (mainly cash or receivables) have almost vanished, yet it still carries current liabilities, creating a symptom of liquidity distress.
• The negative net current assets (working capital) in 2024 is a red flag, implying the company may struggle to cover short-term debts with available assets.
• The drop in net assets suggests the company is either incurring losses or consuming capital, which is unsustainable long-term.
• Lack of employees could mean minimal operations or reliance on outsourced services, which may affect operational stability.

---

3. Diagnosis

REEN LIMITED exhibits symptoms consistent with financial strain and operational downsizing or inactivity:

• The sharp fall in current assets from £3,250 to £24 is a critical symptom, likely indicating cash depletion or receivables write-offs.
• The current liabilities remain at a level higher than current assets in 2024, meaning the company faces potential liquidity challenges.
• The deterioration of net current assets from positive to negative is analogous to a patient whose vital signs have deteriorated, requiring immediate attention.
• The reduction in fixed assets may be an attempt to generate cash or cost-cutting, but this also reduces the company’s long-term asset base.
• The company’s micro-entity status and zero employees suggest limited operational capacity, possibly reflecting a startup in early stages or a company winding down.

Overall, the company is in a fragile financial condition with liquidity risks and reduced net worth, indicating financial health is compromised.

---

4. Recommendations

To improve REEN LIMITED’s financial health—akin to providing a treatment plan for a patient showing distress signs—the following actions are recommended:

• Improve Liquidity:

  • Accelerate collection of any outstanding receivables.
  • Reduce current liabilities by negotiating extended payment terms or settling debts promptly to avoid interest or penalties.
  • Consider short-term financing options (overdraft, loans) prudently to bridge cash flow gaps.

• Cost Management:

  • Evaluate expenses rigorously to eliminate unnecessary costs, especially if no employees are present, focus on streamlining operations.
  • Review fixed assets for potential sale of non-essential items to boost cash reserves.

• Revenue Generation:

  • If operational, focus on increasing sales or service contracts to rebuild current assets and stabilize cash flow.
  • Explore diversification of income streams within the human health activities sector.

• Financial Monitoring:

  • Implement regular cash flow forecasting and budgeting to detect early warning signs.
  • Maintain compliance with filing deadlines to avoid penalties and preserve company reputation.

• Strategic Review:

  • Consider whether the current business model is sustainable at this scale or if restructuring or external investment is necessary.

---