RIFF DESIGN LIMITED

Executive Summary

RIFF DESIGN LIMITED currently exhibits signs of financial fragility, with dangerously low working capital and equity levels indicating limited ability to meet short-term obligations. Immediate actions to improve liquidity, strengthen equity, and control costs are essential to restore financial health and ensure business sustainability. Without intervention, the prognosis remains guarded, with heightened risk of financial distress.

RIFF DESIGN LIMITED - Analysis Report

Company Number: 13393584

Analysis Date: 2025-07-20 17:34 UTC

Financial Health Assessment Report for RIFF DESIGN LIMITED

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1. Financial Health Score: D

Explanation:
RIFF DESIGN LIMITED’s financial health score is rated D due to its critically low net current assets and shareholders' funds at the year ending 31 March 2024. The company's working capital is barely positive (£6), indicating a fragile liquidity position. This score reflects symptoms of financial distress, signaling the need for urgent attention to restore a healthier balance sheet and cash flow.

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2. Key Vital Signs (Critical Metrics)

Metric	2024 Value (£)	Interpretation
Current Assets	15,628	Indicates available short-term resources (cash, receivables).
Current Liabilities	15,622	Debts and obligations due within one year.
Net Current Assets (Working Capital)	6	Barely positive working capital; a healthy business typically maintains a significant buffer.
Shareholders’ Funds (Equity)	6	Reflects the company’s net worth; extremely low, indicating minimal retained earnings or capital.
Employees	1	Very small workforce, consistent with micro-entity status.
Account Category	Micro	Minimal filing requirements; small scale operation.

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3. Diagnosis: What the Financial Data Reveals

RIFF DESIGN LIMITED shows symptoms of financial fragility. The company's net current assets have sharply declined from £874 in 2023 to just £6 in 2024, showing a dramatic erosion of liquidity and working capital. This suggests the business is barely able to cover its short-term liabilities with its current assets, a scenario akin to a patient whose vital signs are dangerously close to failure.

The shareholders' funds have similarly dropped from £874 to £6, indicating that retained earnings or capital injections have not been sufficient to maintain a strong equity base. This low equity could restrict the company’s ability to absorb financial shocks or invest in growth opportunities.

The company operates in the "Other business support service activities not elsewhere classified" sector, likely a service-oriented business with limited fixed assets, which aligns with the micro-entity status and minimal fixed asset reporting.

Despite being a very small business with only one employee, the company has managed to maintain operations since incorporation in 2021, but the latest figures reveal a worrying trend of declining financial health.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Strengthen Working Capital: Bolster current assets through improved cash management, faster receivables collection, or reducing short-term liabilities. Consider negotiating extended payment terms with suppliers to ease cash flow pressure.

• Capital Injection: Consider additional funding from shareholders or external sources to increase equity and provide a buffer against financial distress, akin to a vital transfusion to restore strength.

• Cost Control: Review operational expenses to identify areas for cost reduction without compromising essential business functions.

• Revenue Growth Initiatives: Explore new business development opportunities or diversification to increase income streams and improve profitability.

• Financial Monitoring: Implement regular financial health checks and cash flow forecasting to detect early symptoms of distress and act promptly.

• Professional Advice: Engage with financial advisors or accountants to develop a turnaround plan and optimize tax and financial strategies.

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