SECURE SHIPMENTS LTD

Executive Summary

SECURE SHIPMENTS LTD, a newly incorporated micro-entity in freight transport, shows positive equity but suffers from negative working capital, indicating liquidity pressure. While the company's financial health is currently fragile, with appropriate cash flow management and funding, it can stabilize and build a stronger foundation for growth. Immediate focus on improving liquidity and controlling costs is essential for financial wellness.

SECURE SHIPMENTS LTD - Analysis Report

Company Number: 14786257

Analysis Date: 2025-07-20 13:42 UTC

Financial Health Assessment Report for SECURE SHIPMENTS LTD

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1. Financial Health Score: C

Explanation:
As a micro-entity in its first year of operation, SECURE SHIPMENTS LTD shows a modest but positive net asset position (£3,016). However, the company is currently experiencing negative working capital (net current assets of -£18,144), which is a symptom of liquidity strain. The limited scale and early stage of the company restrict its financial buffer, placing it in a cautious middle ground. The score "C" reflects a business that is operational but exhibits financial stress signals that require management attention to ensure sustainability.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£21,160	Investment in long-term assets is modest, appropriate for start-up.
Current Assets	£13,763	Limited liquid resources (cash, receivables) to meet short-term needs.
Current Liabilities	£31,907	High short-term obligations compared to current assets, a red flag.
Net Current Assets (Working Capital)	-£18,144	Negative working capital suggests potential difficulty covering immediate debts.
Net Assets (Equity)	£3,016	Positive equity indicates some owner investment or retained profits.
Number of Employees	1	Very small workforce consistent with micro-entity status.

Interpretation:
The "working capital" is akin to the company's "short-term cash in the wallet" to pay bills and suppliers. A negative working capital is a symptom of financial distress – the company owes more in the near future than it currently holds in liquid assets. This signals a potential liquidity crunch unless managed carefully.

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3. Diagnosis

SECURE SHIPMENTS LTD is in the initial phase of business, reflected by its recent incorporation in April 2023 and micro-entity status. The balance sheet reveals a fragile financial condition with negative net current assets despite positive net equity. This implies the company has invested in fixed assets but currently lacks sufficient liquid resources to cover immediate liabilities.

The negative working capital is a symptom of financial strain, possibly due to start-up costs, delayed receivables, or early vendor payments. However, the positive net assets and shareholder funds of £3,016 show that the founder (Mr. Callum Shaun Fuller) has provided capital, which is a buffer.

The business operates in freight transport by road (SIC 49410), a sector that may require upfront capital expenditure and working capital to manage operations and logistics. The company has only one employee, reflecting a lean operation.

Overall, the diagnosis points to a young, capital-constrained company with early signs of liquidity challenges but not yet insolvent or in distress.

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4. Recommendations

To improve financial wellness and stabilize liquidity, the following actions are advised:

• Enhance Cash Flow Management:
  Monitor and accelerate receivables collection and negotiate longer payment terms with suppliers to improve working capital.

• Increase Working Capital Buffer:
  Consider additional equity injection or short-term financing to cover the gap between current liabilities and assets, ensuring bills can be paid on time.

• Cost Control:
  Maintain tight control on operating expenses and avoid unnecessary fixed asset purchases until working capital improves.

• Financial Planning:
  Prepare detailed cash flow forecasts to anticipate liquidity needs and avoid surprises.

• Monitor Business Growth:
  As freight transport is capital and resource intensive, scaling carefully with a focus on profitability will reduce financial strain.

• Leverage Director’s Control:
  With 75-100% ownership and voting rights held by the director, decisions can be made swiftly to adjust strategy or inject funds as required.

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