Company Number: 14014420

Analysis Date: 2025-07-29 13:16 UTC

Financial Health Assessment Report: SB45 LIMITED

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1. Financial Health Score: D (Poor)

Explanation:
SB45 Limited exhibits signs of financial distress primarily due to negative net current assets and shareholders’ funds, indicating that the company’s short-term liabilities exceed its current assets and that the accumulated losses surpass its equity base. The grade "D" reflects vulnerability to liquidity issues and an urgent need for financial restructuring or improved operational performance.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	2,500	Limited liquidity; this is the cash and other assets that can be quickly converted to cash.
Current Liabilities	6,638	Debts and obligations due within one year; relatively high compared to current assets.
Net Current Assets (Working Capital)	-4,138	Negative working capital; a symptom of potential cash flow problems.
Total Assets less Current Liabilities	-4,138	Indicates the company owes more short-term than it owns in liquid assets.
Shareholders’ Funds	-7,012	Negative equity; accumulated losses exceed capital invested by shareholders.

Interpretation of Vital Signs:

• The negative net current assets reveal a lack of "healthy cash flow," suggesting the company may face difficulties meeting short-term obligations without external financing or operational improvements.
• Negative shareholders’ funds is a critical "symptom of distress," implying the company has been operating at a loss since inception or is heavily reliant on external funding.
• The limited current assets (just £2,500) compared to liabilities (£6,638) highlight a liquidity crunch that could impair daily operations.

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3. Diagnosis

SB45 Limited is currently in a fragile financial state. The company’s cash and liquid assets are insufficient to cover its immediate liabilities, indicating a "laboured heartbeat" in financial terms — it risks insolvency if the situation persists. The negative equity signals that accumulated losses have eroded the shareholder base, which may reduce confidence from creditors and investors.

Given its micro-entity status, the company may be in early stages or facing startup challenges, but the financial "symptoms" strongly suggest the need for immediate action to restore financial health. Without intervention, the risk of going into liquidation increases.

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4. Recommendations

• Improve Liquidity:
  Explore ways to increase current assets, such as speeding up receivables collection or securing short-term financing to stabilize cash flow.

• Cost Control and Revenue Enhancement:
  Review operational expenses to identify possible reductions and develop strategies to boost sales, particularly leveraging the company’s online retail focus (SIC 47910).

• Capital Injection:
  Consider an equity injection from shareholders or new investors to restore positive shareholders’ funds and strengthen the balance sheet.

• Monitor Working Capital:
  Establish tighter working capital management to ensure liabilities do not outpace liquid assets going forward.

• Financial Planning and Forecasting:
  Implement detailed cash flow forecasting to anticipate future funding gaps and enable proactive management.

• Seek Professional Advice:
  Engage with financial advisors or turnaround specialists to explore restructuring options and avoid escalation into insolvency procedures.

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