REILLY BUSINESS SOLUTIONS LIMITED
Executive Summary
Reilly Business Solutions Limited exhibits serious financial distress with negative net assets but maintains positive working capital, indicating some short-term liquidity. The company requires urgent restructuring of its long-term liabilities and capital strengthening to avoid insolvency. With focused management and financial intervention, there is potential for stabilization and recovery.
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This analysis is opinion only and should not be interpreted as financial advice.
REILLY BUSINESS SOLUTIONS LIMITED - Analysis Report
Financial Health Assessment of Reilly Business Solutions Limited
1. Financial Health Score: D
Explanation:
The company shows significant financial distress reflected by persistent negative net assets and shareholders' funds, indicating insolvency on a balance sheet basis. Although there is a small improvement in net current assets in the latest year, large long-term liabilities and accumulated losses weigh heavily on financial stability. The micro-entity status limits disclosure but the financial data available portrays a worrying capital structure and cash flow challenges.
2. Key Vital Signs:
Metric | 2025 (£) | Interpretation |
---|---|---|
Current Assets | 16,384 | Small but increased from prior year; better liquidity. |
Current Liabilities | 4,130 (short-term creditors) | Manageable short-term obligations. |
Net Current Assets | +12,557 | Positive working capital—healthy short-term liquidity. |
Long-term Liabilities | 40,445 | Significant non-current debt burden. |
Net Assets (Equity) | -27,888 | Negative equity; company owes more than it owns. |
Shareholders’ Funds | -27,888 | Reflects accumulated losses; financially distressed. |
Employees | 1 (average) | Very small workforce, typical for micro company. |
- Working Capital: The positive net current assets suggest the company can cover short-term debts, a "healthy pulse" in liquidity terms.
- Capital Structure: The large negative net assets indicate "symptoms of distress" in long-term solvency, with liabilities exceeding total assets by a significant margin.
- Profit Retention: Negative shareholders' funds point to historical losses or investment write-offs eroding capital.
3. Diagnosis:
Reilly Business Solutions Limited is in a precarious financial condition typical of a startup or micro-entity that is still in early development or turnaround. The company’s balance sheet reveals a "chronic illness" of persistent negative equity, suggesting that accumulated losses or debt have outweighed initial and subsequent investments. Although the company maintains positive working capital, indicating some ability to meet short-term obligations, the heavy long-term liabilities are a "serious symptom" that threatens sustainability if not addressed.
The company's recent name change and director changes suggest restructuring efforts, possibly to reposition the business or manage financial pressures. The micro-entity status means limited financial disclosure, but available data signals the company is in a fragile state financially.
4. Prognosis:
Without significant intervention, the company risks continued financial strain. However, the slight improvement in working capital and increased current assets could signal early recovery if supported by improved operational cash flow or capital injections. The small size and limited employee count imply low fixed costs, which may help in controlling expenses.
If the company can reduce or restructure its long-term liabilities and improve profitability, it may stabilize its financial health. Conversely, failure to address the negative equity and debt levels could lead to insolvency or forced closure measures.
5. Recommendations:
- Debt Restructuring: Engage creditors to renegotiate terms on long-term liabilities to reduce financial burden and improve solvency.
- Capital Injection: Consider new equity funding or shareholder loans to restore positive net assets and strengthen the balance sheet.
- Cash Flow Management: Maintain strict control on expenses and optimize working capital to ensure ongoing liquidity.
- Business Strategy Review: Evaluate core business activities—sports and management consultancy—to identify profitable niches or services to increase revenue.
- Monitoring & Reporting: Implement regular financial health checks and forecasts to detect early warning signs and adjust strategies proactively.
- Governance: Leverage the expertise of current directors and possibly bring in advisory support to guide turnaround efforts.
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