SEFDEV LIMITED

Executive Summary

SEFDEV LIMITED shows early signs of financial strain with negative working capital and a fragile net asset base, indicating liquidity risks. Although the company has grown its current assets, liabilities have increased correspondingly, putting pressure on short-term financial stability. Immediate focus on liquidity management, potential capital injection, and debt restructuring is recommended to improve financial health and ensure sustainable operations.

SEFDEV LIMITED - Analysis Report

Company Number: 13644708

Analysis Date: 2025-07-20 14:31 UTC

Financial Health Assessment of SEFDEV LIMITED

---

1. Financial Health Score: D

Explanation:
SEFDEV LIMITED shows signs of financial strain despite being a micro-entity with no employees and minimal fixed assets. The company has a negative net working capital position in 2023, with current liabilities slightly exceeding current assets, indicating a liquidity concern. The small positive net asset value is marginal and can be volatile. This fragile position suggests caution and a need for corrective action to avoid worsening financial distress.

---

2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Fixed Assets	0	0	No investment in long-term assets; business mainly current asset driven.
Current Assets	2,450,739	1,564,962	Healthy growth in liquid assets, primarily cash or receivables.
Current Liabilities	2,500,947	1,579,289	Increase in short-term obligations; surpasses current assets.
Net Current Assets (Working Capital)	-50,208	-14,327	Negative working capital ("symptom of distress"), risk of liquidity crunch.
Net Assets (Equity)	50,208	-14,327	Small positive equity in 2023 after prior deficit; still weak capital base.
Employees	0	0	No payroll burden; low operating complexity but limited scalability.

Interpretation:

• The company’s working capital is negative, implying it may struggle to meet short-term obligations without additional financing or cash inflows.
• The increase in current liabilities outpaces current assets, indicating mounting short-term financial pressure.
• The small net asset buffer is a fragile "pulse" that could be wiped out by any adverse event or expense.
• Absence of fixed assets and employees suggests a very lean structure, possibly limiting operational risk but also indicating limited operational capacity or growth investment.

---

3. Diagnosis

SEFDEV LIMITED is experiencing early symptoms of financial distress primarily due to its negative working capital position. The company’s current liabilities slightly exceed its current assets, which means it could face difficulties in paying its debts as they fall due—this is akin to a patient showing early signs of dehydration; if not addressed, it could lead to more severe complications.

The company has managed to move from negative net assets in 2022 to a small positive net asset position in 2023, which is a positive sign. However, the margin is thin, indicating that the company’s financial "immune system" is weak and vulnerable. The lack of fixed assets and employees points to a business model likely reliant on holding and managing real estate assets without operational staff, which can be both a strength (low overhead) and a risk (lack of diversification and operational capability).

Given the company operates in the "Buying and selling of own real estate" sector, the large current assets are likely cash or receivables related to property transactions but are closely matched by liabilities, possibly loans or payables related to these transactions.

---

4. Recommendations

To improve SEFDEV LIMITED’s financial wellness and avoid slipping into more serious distress, the following steps are advised:

• Enhance Liquidity Management:
  Actively monitor and manage cash flows to improve working capital. Consider negotiating longer payment terms with creditors or faster collection from debtors to create a healthier liquidity "pulse."

• Capital Injection:
  The controlling shareholder, Mrs. Stephanie Elizabeth Fetiveau, who owns 75-100% of shares, might consider injecting additional equity capital to strengthen the net asset position and provide a buffer against liabilities.

• Review Short-term Debt Structure:
  Explore refinancing or restructuring short-term liabilities into longer-term debt to reduce immediate pressure on cash flows.

• Operational Efficiency:
  Although the company currently has no employees, ensure that operational expenses remain minimal. Avoid unnecessary expenditures that could worsen liquidity.

• Strategic Asset Review:
  Since fixed assets are nil, consider whether investment in long-term assets or diversification of real estate holdings may provide more stable income streams.

• Regular Financial Health Monitoring:
  Set up regular financial "check-ups" to detect early symptoms (e.g., cash flow shortages, increasing liabilities) and respond promptly.

---