SILVERIST LTD

Executive Summary

SILVERIST LTD is an early-stage micro retail company currently exhibiting signs of financial strain, including negative working capital and net assets. Though not critically ill, the company needs to focus on improving cash flow, increasing capital, and controlling costs to restore financial health. With prudent management and growth initiatives, the company can move toward a sustainable and robust financial position.

SILVERIST LTD - Analysis Report

Company Number: 14767123

Analysis Date: 2025-07-29 16:36 UTC

Financial Health Assessment for SILVERIST LTD

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1. Financial Health Score: D (Weak Financial Health)

Explanation:
SILVERIST LTD currently exhibits signs of financial strain. The company shows net current liabilities and negative net assets, which are symptoms of financial distress in early stages. Although it is a micro entity with limited size and operational history, these indicators warrant caution. The company is still active and not in liquidation, but its financial "vital signs" suggest that corrective actions are needed to restore financial wellness.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	12,755	Adequate short-term assets, mainly cash/debtors
Current Liabilities	13,994	Short-term obligations slightly exceed assets
Net Current Assets (Working Capital)	-1,239	Negative working capital indicates liquidity pressure
Net Assets (Total Equity)	-1,559	Negative net worth signals accumulated losses or debt exceeding assets
Shareholders’ Funds	-1,559	Equity is in deficit, meaning liabilities exceed assets
Number of Employees	2	Small scale operation, typical for a micro company

Interpretation of Vital Signs:

• Negative working capital ("net current liabilities") means the company may struggle to meet short-term debts as they fall due, a symptom akin to "breathlessness" in financial health.
• Negative net assets and shareholders’ funds reflect that the company’s total liabilities exceed total assets, a "structural weakness" implying accumulated losses or initial funding shortfalls.
• Being a new company (incorporated March 2023) with only one year’s accounts, this may reflect start-up phase investment and operational losses rather than chronic illness.

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3. Diagnosis: Financial Condition Assessment

SILVERIST LTD is in the early stage of its business lifecycle with a small scale retail operation (mail order/internet sales). The financial "symptoms" show:

• Liquidity stress: Negative working capital means the company must carefully manage cash flow to avoid payment delays or defaults.
• Capital deficiency: The negative net assets indicate that liabilities currently exceed assets, possibly due to initial start-up costs, early operating losses, or shareholder loans classified as liabilities.
• Limited operational history: With only one year of financial data, it is common for new companies to report losses as they establish market presence and build customer base.
• No signs of insolvency: The company is active, not in liquidation or administration, and filings are up to date, which is a good sign of compliance and operational continuity.

Overall, SILVERIST LTD is showing symptoms of financial distress typical for a start-up, but the condition is not yet critical. The company requires close monitoring and management intervention to ensure survival and growth.

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4. Recommendations

To improve SILVERIST LTD’s financial wellness and move toward a healthier financial state:

1. Improve Cash Flow Management:

   • Accelerate collection of receivables and manage payables prudently.
   • Monitor cash flow forecasts regularly to anticipate liquidity gaps.

2. Increase Capital Base:

   • Consider additional equity investment from the shareholder or new investors to strengthen net assets and provide working capital.
   • Alternatively, explore low-cost financing options to support operations without excessive debt burden.

3. Cost Control:

   • Review operational expenses and staffing to ensure cost efficiency.
   • As a micro company with 2 employees, keep overheads lean until revenues stabilize.

4. Revenue Growth Initiatives:

   • Focus on enhancing sales via internet retail channels, marketing, and customer engagement to improve turnover.
   • Diversify product offerings or expand market reach cautiously to increase income streams.

5. Regular Financial Monitoring:

   • Establish monthly or quarterly financial reviews to detect early signs of distress and adjust strategy accordingly.
   • Engage professional advice if necessary to support financial planning and compliance.

6. Future Filings & Compliance:

   • Continue timely submission of accounts and confirmation statements to avoid penalties and maintain good standing.

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Medical Analogy Summary

SILVERIST LTD’s financial health resembles a patient in the early stages of illness—showing signs like "shortness of breath" (negative working capital) and "low blood pressure" (negative net assets). While the condition is not critical, without intervention, the patient's health could deteriorate. Timely treatment focusing on stabilisation (cash flow management, capital strengthening) and rehabilitation (revenue growth and cost control) will improve its chances for recovery and healthy growth.

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