SIMPLY SALES SOLUTIONS LTD

Executive Summary

Simply Sales Solutions Ltd is in the early stages of business with typical startup financial challenges, including negative working capital and net assets. While these symptoms indicate financial stress, timely capital support and focused revenue growth strategies can potentially restore health. Close monitoring and prudent financial management are essential to avoid worsening liquidity issues.

SIMPLY SALES SOLUTIONS LTD - Analysis Report

Company Number: 15162948

Analysis Date: 2025-07-20 18:46 UTC

Financial Health Assessment Report: Simply Sales Solutions Ltd

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1. Financial Health Score: D

Explanation:
Simply Sales Solutions Ltd displays early signs of financial distress. The company has net current liabilities (negative working capital) and negative net assets, indicating that short-term obligations exceed short-term resources and overall liabilities exceed assets. Given its micro-entity status and recent incorporation, this is not unusual in the startup phase but is a concerning symptom if not addressed promptly.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	7,885	Represents liquid or near-liquid resources available within 1 year.
Current Liabilities	12,506	Short-term debts and obligations due within 1 year.
Net Current Assets (Working Capital)	-4,621	Negative working capital — signals inability to cover short-term liabilities with current assets.
Net Assets (Shareholders' Funds)	-4,621	Negative equity — total liabilities exceed total assets, indicating potential insolvency risk.
Employee Count	2	Small team consistent with micro-company status.
Company Age	~1 year	Newly incorporated, still in early operational phase.

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3. Diagnosis (Financial Symptoms Analysis)

• Negative Working Capital: The firm’s current liabilities outstrip its current assets by £4,621. This is a critical "symptom of distress" indicating potential cash flow difficulties in meeting short-term obligations. It can lead to supplier payment delays or reliance on external financing.

• Negative Net Assets: The company’s total liabilities exceed its total assets by £4,621. This is a warning sign that the business is "under the weather" financially, as it has effectively accumulated losses or owes more than it owns.

• Startup Phase Considerations: Given the company was incorporated in late 2023 and the accounts cover only a brief initial period (Oct-Dec 2023), some negative balances can be attributed to initial setup costs and investment phases. However, without sufficient capital injection or rapid revenue generation, these negative balances could worsen.

• No Audit & Micro-Entity Status: The accounts are prepared under micro-entity provisions with no audit, limiting the depth of financial scrutiny. This is standard but means financial data should be monitored closely.

• Ownership Concentration: Mr. David Carruthers holds 75-100% of shares and voting rights, indicating centralized control which can be an advantage for swift decision-making but also places significant responsibility on one individual for remedying financial health.

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4. Prognosis

If current trends continue without additional capital injection or revenue growth, the company risks increased liquidity strain. The negative working capital and net liabilities suggest a fragile financial state. However, as a startup, this condition can improve rapidly with successful sales, cost management, or new investment. Early intervention is critical to avoid deterioration into insolvency.

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5. Recommendations (Prescriptions for Financial Wellness)

• Improve Cash Flow: Prioritize accelerating receivables collection and negotiating extended payment terms with suppliers to improve liquidity.

• Capital Injection: Consider additional equity investment or short-term financing to strengthen working capital and restore positive net assets.

• Cost Control: Rigorously monitor operating expenses to reduce cash burn during the early growth phase.

• Revenue Growth Focus: Implement targeted sales strategies aligned with the company's business support service activities (SIC 82990) to boost income streams.

• Regular Financial Monitoring: Establish monthly cash flow forecasts and financial reviews to detect symptoms of distress early.

• Seek Professional Advice: Engage with financial advisors or accountants regularly to review financial health and compliance, especially given the micro-entity accounting framework.

• Governance Vigilance: Given sole control by one director, consider forming an advisory board or involving additional stakeholders to provide oversight and reduce decision-making risk.

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