SEVARA LIMITED

Executive Summary

SEVARA LIMITED currently holds a stable but inactive financial position with positive net assets and liquidity but zero revenue in the latest year, indicating a pause in trading activity. The company’s financial health is fair, supported by a sound balance sheet but requires urgent focus on revenue generation to ensure long-term viability. Implementing strategic actions to restart trading and monitor cash flow will be critical to improving financial wellness.

SEVARA LIMITED - Analysis Report

Company Number: 14379064

Analysis Date: 2025-07-29 16:30 UTC

Financial Health Assessment for SEVARA LIMITED (As of 30 September 2024)

---

1. Financial Health Score: C (Fair)

Explanation:
SEVARA LIMITED shows a stable but currently inactive operational state. The company maintains positive net assets and working capital, indicating a "healthy cash flow" position in terms of liquidity. However, the complete absence of turnover in the latest financial year is a significant "symptom of distress" in business activity. The company’s balance sheet remains positive, but lack of trading revenue points to a need for strategic attention to generate income and sustain growth.

---

2. Key Vital Signs (Core Financial Metrics & Interpretation):

Metric	2024 Value	Interpretation
Turnover	£0	Zero revenue this year; no trading activity recorded.
Profit/Loss for Period	£0	No profits generated; break-even in absence of turnover.
Fixed Assets	£5,348	Stable asset base, likely equipment or software tools.
Current Assets	£2,563	Includes cash or receivables; liquidity remains positive.
Current Liabilities	£209	Very low short-term debts.
Net Current Assets	£2,354	Positive working capital; good short-term financial health.
Net Assets / Equity	£7,702	Positive shareholder funds, indicating solvency.
Employee Count	1	Sole director/employee; micro entity status is appropriate.

Interpretation:
The company’s balance sheet "vital signs" suggest sound financial footing in terms of assets versus liabilities and liquidity. However, the "heart rate" of the business — turnover — has flatlined, which is concerning for ongoing viability if sustained.

---

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

• Positive Signs:

  • Healthy net current assets and positive net asset position signify no immediate liquidity or solvency issues.
  • Minimal liabilities reduce financial risk and interest burden.
  • The sole director owns 100% shares and controls voting, centralizing decision-making which can be efficient for small businesses.

• Symptoms of Concern:

  • Zero turnover in the current financial year indicates the company is not generating revenue, which is a critical symptom of operational inactivity or transition.
  • The prior year recorded turnover of £38,179 and a profit of £22,642, suggesting that the business was previously active but has since ceased trading or paused operations.
  • With only one employee (the director), the business is highly dependent on a single individual’s capacity and vision.

• Underlying Causes to Consider:

  • Possible strategic pause for restructuring or product development.
  • Market or operational challenges affecting sales generation.
  • Early-stage startup dynamics, given the company was incorporated in late 2022.

---

4. Prognosis (Future Financial Outlook Based on Current Indicators):

• If the company can revive or initiate trading activity soon, the solid balance sheet provides a good foundation for recovery.
• Continued zero turnover in subsequent periods risks depleting cash reserves and eroding net assets, as operational costs may arise despite no income.
• Sole dependency on one individual can limit scalability and risk continuity if that person is unable to operate the business.
• Positive working capital mitigates short-term financial distress risk but is insufficient long-term without revenue.

---

5. Recommendations (Specific Actions to Improve Financial Wellness):

• Restart or Accelerate Revenue Generation: Develop a clear business plan to resume trading or launch products/services to convert assets into operating cash flow.
• Cash Flow Monitoring: Maintain close watch on cash reserves and plan for any funding requirements proactively.
• Cost Control: Keep operating expenses minimal until a steady income stream is established to conserve cash "vitality."
• Seek External Advice or Partnerships: Consider mentorship or partnerships to diversify skills and reduce sole dependency risks.
• Marketing & Sales Focus: Invest in marketing and sales initiatives to attract customers and generate turnover.
• Regular Financial Review: Schedule periodic financial "health checks" akin to medical reviews to detect any emerging distress early.
• Compliance & Governance: Continue timely filing and compliance to avoid penalties and maintain business reputation.

---