REMEDY.DIGITAL LTD

Executive Summary

REMEDY.DIGITAL LTD is a micro-sized advertising agency showing signs of liquidity pressure with negative working capital and very thin equity. While solvent and operational, the company faces financial stress symptoms that require focused cash flow and working capital management. Strategic actions to bolster cash reserves and strengthen the balance sheet will improve its financial health outlook.

REMEDY.DIGITAL LTD - Analysis Report

Company Number: 13267025

Analysis Date: 2025-07-20 16:40 UTC

Financial Health Assessment for REMEDY.DIGITAL LTD

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1. Financial Health Score: C-

Explanation:
The company shows signs of financial strain with persistent net current liabilities (negative working capital) and very thin net assets, though it remains solvent and operational. The micro-entity status limits detailed disclosures, but the available metrics suggest caution. The score reflects marginal financial health with some symptoms of distress needing attention.

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2. Key Vital Signs

Metric	2025 (£)	2024 (£)	Interpretation
Fixed Assets	1,350	1,687	Small investment in long-term assets
Current Assets	5,751	3,703	Moderate liquid assets including cash
Current Liabilities	6,956	5,261	Short-term obligations exceeding assets
Net Current Assets	-1,205	-1,558	Negative working capital; liquidity risk
Total Assets Less Current Liabilities	145	129	Marginal buffer after short-term debts
Net Assets (Shareholders Funds)	145	129	Very low equity, close to break-even
Share Capital	1	1	Nominal share capital
Average Employees	0	0	No employees besides director; low operational scale

Interpretation:

• The company’s negative net current assets ("working capital deficit") is a key symptom of liquidity stress, indicating it may face challenges meeting short-term obligations from available current assets.
• The modest increase in current assets is positive but offset by a larger increase in current liabilities, worsening net current asset position.
• Net assets are very thin, meaning the company has minimal equity buffer to absorb losses or shocks.
• The absence of employees besides the director suggests a lean operation but may limit growth or operational capacity.
• Being a micro-entity means the company benefits from simplified reporting but also typically signals smaller scale and resources.

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3. Diagnosis: What the Financial Data Reveals

REMEDY.DIGITAL LTD is a very small, lean advertising agency operating at a micro-entity scale. The company's financial condition shows symptoms of liquidity distress due to persistent negative working capital. This means the business may struggle to cover its short-term debts with short-term assets, which can lead to operational constraints or reliance on external funding.

The very low net asset value indicates limited financial resilience. While not insolvent, the company’s cushion against unexpected expenses or downturns is minimal. The increase in current liabilities outpacing current assets is a concerning trend, suggesting that payables or short-term borrowings are growing faster than available liquid resources.

No audit requirement and absence of employees point to a simple business model, possibly reliant on the director’s own efforts and limited external engagement. The company’s operating environment in advertising agencies (SIC 73110) can be competitive and cash flow sensitive, so managing working capital is critical.

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4. Recommendations: Actions to Improve Financial Wellness

• Improve Working Capital Management:
  Focus on accelerating cash collections (debtors), negotiating longer payment terms with suppliers, and closely monitoring short-term liabilities to avoid liquidity crunches.

• Build Cash Reserves:
  Increasing cash holdings will provide a healthy "financial pulse" and reduce the risk of cash flow shortages. Consider short-term financing options cautiously if needed.

• Increase Equity or Retain Profits:
  Infuse additional capital or retain earnings to strengthen shareholders' funds, improving the company’s balance sheet resilience.

• Operational Efficiency:
  Maintain a lean cost base but explore opportunities to increase revenue streams or diversify clients to generate stronger cash flows.

• Regular Financial Monitoring:
  Set up monthly financial reviews focusing on cash flow forecasts, debtor aging, and creditor obligations to spot symptoms early and act promptly.

• Consider Professional Advice:
  Engage with financial advisors or accountants to optimize tax planning, cash flow management, and longer-term financial strategy.

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