Company Number: 14602626

Analysis Date: 2025-07-29 12:33 UTC

Financial Health Assessment for S & R Cooper Ltd (to 31 January 2025)

---

1. Financial Health Score: C (Moderate Concern)

Explanation:
S & R Cooper Ltd shows some foundational strengths with positive net assets and shareholder funds, indicating the business has a capital buffer. However, the persistent negative net current assets (working capital deficit) over the last three reported years signals liquidity stress — the company’s short-term obligations exceed its short-term assets. This "symptom of distress" suggests potential challenges in meeting immediate liabilities without additional financing or improved cash management.

---

2. Key Vital Signs: Critical Metrics & Interpretation

Metric	Value (2025)	Interpretation
Fixed Assets	£81,503	Stable investment in long-term resources, reflecting some business infrastructure or equipment.
Current Assets	£79,815	Short-term resources available, mainly cash, debtors, or stock.
Current Liabilities	£111,056	Short-term debts and obligations due within one year.
Net Current Assets	-£31,241	Negative working capital; current liabilities exceed current assets by £31k — liquidity risk.
Total Assets less CL	£50,262	Net assets after covering short-term debts; positive and growing compared to prior years.
Shareholders’ Funds	£50,262	Owners’ equity; positive and increased from £39,858 (2024). Indicates retained earnings or capital injections.
Employee Count	2 employees	Very small workforce; micro-entity scale.

Trend Notes:

• Net current liabilities have improved from -£38,475 (2024) to -£31,241 (2025), showing slight relief but still negative.
• Shareholders’ funds have increased, which is a positive sign of growth or capital input.
• Current liabilities have decreased, but still exceed current assets.

---

3. Diagnosis: What the Financial Data Reveals About Business Health

The business shows signs of early-stage liquidity strain, much like a patient whose blood pressure is elevated but not yet at a critical level. The negative working capital means the company may face difficulties in paying suppliers or short-term creditors promptly without drawing on longer-term financing or additional capital injections.

However, the positive and growing net assets and shareholders’ funds reflect an underlying strength akin to a steady heartbeat—indicating that the company’s overall financial foundation is intact. The fixed assets base is stable, suggesting ongoing investment or maintenance of operational capacity.

The company is small and newly incorporated (2023), which often involves initial cash flow challenges as the business establishes its market presence and revenue streams. The directors have so far maintained a capital buffer, but the persistent negative working capital is a red flag that requires close monitoring.

---

4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Liquidity Management:

  • Prioritize reducing current liabilities or extending payment terms with suppliers to ease immediate cash outflows.
  • Accelerate collections of receivables and optimize inventory turnover to boost current assets.

• Increase Working Capital:

  • Consider a shareholder loan or equity injection to bolster cash reserves.
  • Explore short-term financing options with favourable terms to cover working capital gaps temporarily.

• Cost Control & Revenue Growth:

  • Review operating expenses to identify cost-saving opportunities.
  • Develop strategies to increase sales or diversify revenue streams to enhance cash inflows.

• Financial Monitoring:

  • Implement regular cash flow forecasting to foresee and mitigate liquidity crunches.
  • Maintain transparent financial reporting to support informed decision-making.

• Seek Expert Advice:

  • Engage financial advisors or accountants for tailored strategies to strengthen the financial position, particularly focusing on liquidity and cash flow health.

---

Medical Analogy Summary

S & R Cooper Ltd currently exhibits a "healthy heart" (positive equity) but suffers from "shortness of breath" due to liquidity constraints (negative working capital). Without intervention, this symptom could worsen, potentially leading to "financial distress." However, with focused management and incremental improvements, the company has a reasonable prognosis to stabilize and strengthen its financial health.

---