ROUTINGTECH LTD

Executive Summary

ROUTINGTECH LTD is currently in a fragile financial state characterized by low turnover, negative working capital, and negative equity, though it posted a small profit in the latest year. The company shows early-stage growth symptoms but requires urgent focus on liquidity improvement, revenue enhancement, and cost management to stabilize and strengthen its financial health. With targeted actions, the prognosis for recovery and sustainable growth can be positive.

ROUTINGTECH LTD - Analysis Report

Company Number: 12493887

Analysis Date: 2025-07-29 13:54 UTC

Financial Health Assessment for ROUTINGTECH LTD (as at 31 March 2024)

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1. Financial Health Score: D

Explanation:
The company is currently exhibiting symptoms of financial distress with negative net assets and a working capital deficit. Although there was a small profit in the most recent year, the overall financial position remains fragile with persistent negative equity. This score reflects a warning that ROUTINGTECH LTD needs targeted financial interventions to return to a healthy state.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Turnover	£7,450	Very low revenue indicating either a small scale of operations or early-stage business growth.
Profit / (Loss)	£315	Positive profit for the year, a sign of potential recovery from prior losses.
Current Assets	£950	Low current assets; limited cash and receivables to cover short-term obligations.
Current Liabilities	£1,067	Slightly higher than current assets, causing a working capital deficit.
Net Current Assets	-£117	Negative working capital, indicating liquidity stress; company may struggle to meet short-term debts.
Net Assets (Equity)	-£117	Negative shareholder equity implies accumulated losses exceeding capital invested.
Share Capital	£1.00	Minimal capital injection; reliance on retained earnings or external funding needed.
Trend in Net Assets	2021: -£2,396 → 2023: £107 → 2024: -£117	Some fluctuation, showing past severe losses, brief improvement, and recent slight decline.

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3. Diagnosis: What the Financial Data Reveals

ROUTINGTECH LTD shows the classic symptoms of a micro-entity in early or difficult stages of growth. The company has generated extremely low turnover, though it has improved from zero to £7,450 over recent years. The positive net profit in 2024 (£315) is a hopeful symptom of a healthier cash flow and operational control.

However, the company’s liquidity is weak, as seen in the negative net current assets (-£117). This is akin to a patient whose blood pressure is slightly below normal—manageable but concerning without intervention. The negative net assets (-£117) highlight accumulated losses from prior years that have eroded shareholder funds, which is analogous to a patient with a weakened immune system.

The absence of employees suggests the business is either a sole proprietorship or reliant on outsourcing/contractors, which reduces fixed overhead but can limit scalability. The company operates in technical consulting and computer facilities management, a sector that typically requires investment in skilled personnel and marketing to increase turnover.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Liquidity Management:
  Aim to increase current assets, specifically cash reserves, to cover current liabilities. Consider negotiating longer payment terms with suppliers or accelerating collection of receivables.

• Boost Revenue Generation:
  The very low turnover is a critical symptom. Developing a focused sales and marketing strategy to attract more clients and enhance service offerings will improve the financial “vital signs.”

• Cost Control and Expense Monitoring:
  While staff costs are currently zero, other charges remain significant relative to turnover. Tighten expense controls and review all outgoings to preserve cash.

• Capital Injection or Financing:
  With minimal share capital and negative equity, consider raising additional funds from the owner or external investors to strengthen the balance sheet “immune system.”

• Monitor Financial Trends Closely:
  Regular financial reviews and cash flow forecasting can help diagnose emerging issues early and adjust strategies promptly.

• Consider Professional Advice:
  Engage with accountants or business advisors for tailored financial restructuring or growth strategies.

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