ROLL THE DICE CAFE LIMITED

Executive Summary

Roll The Dice Cafe Limited, a newly formed micro-entity, currently shows financial strain with negative working capital and net assets indicating liquidity and solvency challenges typical of startups. Immediate focus on cash flow management, liability restructuring, and capital strengthening is essential to improve its financial health and ensure operational viability. With timely interventions, the company has the potential to stabilize and grow sustainably.

ROLL THE DICE CAFE LIMITED - Analysis Report

Company Number: 15126539

Analysis Date: 2025-07-29 12:18 UTC

Financial Health Assessment Report for Roll The Dice Cafe Limited

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1. Financial Health Score: D (At Risk)

Explanation: The company exhibits signs of financial distress with negative net assets, net current liabilities, and a working capital deficit. While it is still operational, its balance sheet shows vulnerabilities that require immediate attention to avoid worsening financial health.

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2. Key Vital Signs

Metric	Amount (£)	Interpretation
Fixed Assets	21,380	Small base of long-term assets, typical for a new micro business in hospitality.
Current Assets	11,404	Limited liquid resources; cash/debtors may be insufficient to cover short-term obligations.
Current Liabilities	33,665	High short-term debts, significantly exceeding current assets, indicating liquidity stress.
Net Current Assets	(22,261)	Negative working capital: a key symptom of cash flow constraints and potential payment delays.
Total Assets Less CL	(881)	Slightly negative after offsetting current liabilities against total assets.
Net Assets (Shareholders' Funds)	(2,483)	Negative equity suggests accumulated losses or initial startup deficits.
Average Number of Employees	2	Small workforce, consistent with micro-entity status, but limits operational scalability.

Vital Signs Interpretation:
The company is showing "symptoms of distress" in liquidity and solvency. Negative working capital is particularly concerning, as it means the company does not have enough short-term assets to cover its immediate debts. Negative net assets (shareholders' funds) indicate that liabilities exceed assets, a red flag for financial health.

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3. Diagnosis

Roll The Dice Cafe Limited is a newly incorporated micro private limited company operating in the unlicensed cafes sector. The financial snapshot at the end of its first full financial year reveals a fragile balance sheet characterized by:

• Liquidity Challenges: The company’s current liabilities exceed its current assets by £22,261, indicating a cash flow squeeze that could hinder day-to-day operations and meeting short-term obligations.
• Solvency Concerns: Negative net assets (-£2,483) suggest the business has either incurred initial operating losses or has liabilities outweighing its asset base, which is typical in startup phases but must be managed carefully.
• Limited Asset Base: Fixed assets of £21,380 provide some long-term value but are insufficient to offset working capital deficits.
• Small Scale Operations: With just two employees, the business may be vulnerable to operational risks and lacks economies of scale.

Overall, the company is in an early stage with expected startup losses and cash flow constraints — classic "infant symptoms" of a young business. However, the negative working capital and shareholders' deficit could develop into more serious financial ailments if not addressed promptly.

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4. Recommendations

To improve the financial wellness of Roll The Dice Cafe Limited, consider the following actions:

• Strengthen Cash Flow Management:

  • Improve collection of receivables and manage payables carefully to avoid liquidity crunches.
  • Monitor daily cash flow to anticipate shortfalls and plan accordingly.

• Restructure Short-term Liabilities:

  • Negotiate extended payment terms with suppliers to reduce immediate cash burden.
  • Explore short-term financing options (overdraft, invoice financing) to bridge working capital gaps.

• Increase Revenue and Profitability:

  • Focus on marketing and customer engagement to boost sales in the highly competitive café sector.
  • Review pricing and cost controls to enhance gross margins.

• Build Capital Base:

  • Consider additional equity investment from the owner or external investors to strengthen net assets.
  • Retain earnings to rebuild shareholders' funds over time.

• Monitor Financial Metrics Regularly:

  • Set up monthly financial reviews focusing on liquidity ratios, net assets, and cash burn rate.
  • Early detection of deteriorating indicators is critical for timely corrective measures.

By addressing these "symptoms" early, the company can transition from fragile startup status toward a more stable and sustainable financial condition.

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