REPROGRAPHIC TAILORED SERVICES LTD

Executive Summary

REPROGRAPHIC TAILORED SERVICES LTD exhibits a mixed financial condition with positive net assets but current liquidity challenges indicated by negative working capital. The company’s financial health grade is C, reflecting concerns around short-term cash flow that require active management. Focused actions on improving liquidity, cost control, and asset utilization are recommended to stabilize and improve financial wellness.

REPROGRAPHIC TAILORED SERVICES LTD - Analysis Report

Company Number: 13547212

Analysis Date: 2025-07-29 19:04 UTC

Financial Health Assessment of REPROGRAPHIC TAILORED SERVICES LTD

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1. Financial Health Score: C

Explanation:
The company shows a mixed financial picture with some concerning signs in liquidity and working capital management, offset by a stable equity base. The recent year’s net current liabilities indicate a temporary cash flow strain or short-term financial distress, which reduces the overall financial health grade to a "C" — adequate but with cautionary symptoms.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	25,925	Moderate investment in long-term resources; growing asset base.
Current Assets	9,175	Decline from previous year; less short-term liquid resources.
Current Liabilities	21,582	Increased, exceeding current assets, causing working capital deficit.
Net Current Assets (Working Capital)	-12,407	Negative; signals liquidity stress and potential difficulty meeting short-term obligations.
Total Assets Less Current Liabilities	13,518	Positive but declining from prior years, showing reduced buffer after short-term debts.
Shareholders Funds (Equity)	13,518	Positive equity but has decreased, showing some erosion of net worth.

Interpretation of Vital Signs:

• The negative working capital is a key "symptom of distress," indicating the company may be struggling to cover short-term liabilities with available liquid assets.
• The increase in fixed assets suggests an investment in capacity or equipment, which could be positive if aligned with business growth.
• The declining equity and net assets suggest some erosion of capital, possibly due to losses or increased liabilities.
• The company remains solvent with positive net assets but the downward trend warrants attention.

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3. Diagnosis

The financial "pulse" of REPROGRAPHIC TAILORED SERVICES LTD reveals some troubling symptoms despite being operationally stable. The liquidity crisis—manifested by negative net current assets—indicates the company may face challenges meeting its immediate financial demands without additional financing or improved cash inflows. This is akin to a patient whose vital signs are stable but shows signs of dehydration or nutrient deficiency, requiring intervention before the condition worsens.

The increased investment in fixed assets could be a deliberate growth strategy, but the accompanying reduction in current assets and rise in short-term liabilities may mean the company is stretching resources thin. The equity base remains positive, suggesting no insolvency, but the trend is downward, signaling potential financial fatigue if operational performance does not improve.

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4. Recommendations

To restore the company's financial wellness and prevent further deterioration, the following steps are advisable:

• Improve Liquidity Management:

  • Tighten credit control to accelerate debtor collections.
  • Negotiate extended payment terms with suppliers to ease cash outflows.
  • Consider short-term financing options such as an overdraft or invoice factoring to cover working capital gaps.

• Cost Control and Cash Flow Monitoring:

  • Conduct a rigorous review of overheads and discretionary spending to preserve cash.
  • Implement weekly cash flow forecasts to anticipate and mitigate liquidity shortages.

• Asset Utilisation Review:

  • Evaluate the return on investment from recent fixed asset acquisitions to ensure they contribute positively to profitability.
  • Consider selling or leasing underutilised assets to improve cash reserves.

• Strengthen Equity Position:

  • Explore opportunities for capital injection from existing shareholders or new investors to shore up net assets and provide a financial buffer.

• Board Oversight and Financial Reporting:

  • Enhance financial reporting frequency to directors for early detection of negative trends.
  • Regularly review financial KPIs and incorporate scenario planning.

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