Company Number: 13481808

Analysis Date: 2025-07-29 19:39 UTC

Financial Health Assessment Report for REVIVE ELECTRICAL LIMITED

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1. Financial Health Score: B-

Explanation:
The company demonstrates generally stable financial footing with positive net assets and healthy working capital. However, there are signs of emerging liquidity pressures and lack of operational scale (notably zero employees), which temper the overall score. The B- grade reflects a company currently solvent and stable but exhibiting symptoms warranting close monitoring and proactive management.

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2. Key Vital Signs (Financial Metrics and Interpretation):

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	813	910	Very low fixed asset base, typical for a service-focused micro entity with limited capital investment.
Current Assets	34,115	24,823	Cash and receivables improving, indicating stronger short-term liquidity.
Current Liabilities	13,425	658	Significant increase in short-term liabilities (20x increase) is a red flag—potential liquidity stress.
Net Current Assets (Working Capital)	20,690	24,165	Positive but declining working capital suggests slight tightening of liquid resources.
Net Assets (Equity)	21,023	24,655	Positive net assets indicate solvency, but decrease signals possible erosion of retained earnings or reserves.
Employees	0	0	No employees, implying reliance on director or subcontractors; potentially limits operational capacity.

Additional Observations:

• The company is categorized as a Micro entity, implying minimal regulatory burden but also limited scale.
• No audit required under micro-entity exemption; accounts unaudited.
• Single director owns 75-100% shares and controls the company.
• No profit & loss account filed, limiting detailed profitability analysis.
• Increase in current liabilities may reflect delayed payments or short-term borrowing.

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3. Diagnosis: Financial Health Interpretation

The financial "vital signs" suggest REVIVE ELECTRICAL LIMITED is currently solvent and maintaining a positive equity base, akin to a patient with stable vital signs. The company’s working capital remains positive, indicating a generally "healthy cash flow" position sufficient to meet short-term obligations.

Symptoms of Concern:

• A sharp rise in current liabilities from £658 to £13,425 in one year signals potential "symptoms of distress" such as payment delays to suppliers or accumulation of short-term debts.
• The reduction in net assets and working capital could be early warning signs of financial strain if liabilities are not managed carefully.
• Absence of employees might indicate limited operational capacity or potential over-reliance on the director or contractors, which can affect scalability and resilience.
• Lack of a profit and loss statement limits insight into profitability, making it harder to assess earnings health.

Overall, the company appears to be in a stable but fragile state. The positive net assets and working capital are reassuring "healthy signs," but the increasing current liabilities and reduced equity suggest the need for close financial management to avoid liquidity issues.

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4. Recommendations: Improving Financial Wellness

1. Manage Short-Term Liabilities:
   Investigate the cause of the large increase in current liabilities. If these are supplier debts or short-term borrowings, develop a clear plan to reduce them promptly to avoid cash flow crunches.

2. Profit & Loss Transparency:
   Although not required, consider preparing and reviewing detailed profit and loss statements internally. This will provide insight into profitability trends and help identify cost control opportunities.

3. Operational Capacity Review:
   Evaluate the business model and consider hiring or formally engaging skilled employees or contractors to increase operational capacity and reduce reliance on a single director.

4. Cash Flow Monitoring:
   Implement rigorous cash flow forecasting and management to ensure liquidity remains sufficient to meet obligations, especially given the rising current liabilities.

5. Growth and Investment Strategy:
   Explore modest investment in fixed assets or marketing to support business growth, while maintaining prudent financial controls.

6. Regular Financial Health Checks:
   Schedule periodic financial reviews to monitor key indicators, especially working capital and net assets, to identify any early signs of deterioration.

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