SITE MANAGER 360 LTD

Executive Summary

SITE MANAGER 360 LTD, a newly formed micro-entity in the specialized construction sector, is currently facing financial challenges including negative working capital and net assets. Without prompt capital injection and improved cash flow management, the company risks liquidity distress. Immediate corrective actions focused on cash flow, cost control, and strengthening equity are critical to improve its financial health and sustainability.

SITE MANAGER 360 LTD - Analysis Report

Company Number: 14719695

Analysis Date: 2025-07-29 18:02 UTC

Financial Health Assessment for SITE MANAGER 360 LTD

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1. Financial Health Score: D

Explanation:
The company is currently showing signs of financial distress, evidenced by negative net current assets and overall negative net assets, which indicate liabilities exceeding assets. This score reflects a precarious financial position that requires urgent attention to avoid worsening solvency issues.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	13,034	Modest investment in long-term assets, indicating some capital investment but not extensive.
Current Assets	2,085	Very low liquid assets (cash, receivables, stock) available to cover short-term obligations.
Current Liabilities	20,550	Significant short-term debts due within one year, much higher than current assets.
Net Current Assets (Working Capital)	-18,465	Negative working capital, a symptom of liquidity distress indicating potential cash flow problems.
Total Assets less Current Liabilities	-5,431	Overall liabilities exceed assets, a sign of balance sheet weakness and potential insolvency risk.
Net Assets / Shareholders' Funds	-5,431	Negative equity means the company owes more than it owns, a critical financial health symptom.

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3. Diagnosis: What the Financial Data Reveals

SITE MANAGER 360 LTD is in its infancy, having been incorporated in March 2023, and has filed its first set of financial statements ending April 2024. The company currently exhibits symptoms akin to a patient with a weakened cardiovascular system — specifically, poor liquidity (negative working capital) and negative net worth (shareholders' funds). These symptoms suggest that the company is operating with a cash flow deficit, unable to meet its short-term obligations comfortably.

The negative net assets (equity) indicate the company is technically insolvent on a balance-sheet basis. This can be typical for a startup in early stages but raises concerns about the sustainability of operations without additional capital injection or rapid improvement in profitability and cash inflows.

The relatively low fixed assets and current assets compared to liabilities suggest limited buffer to absorb financial shocks. The company employs just two people (including directors), indicating a lean operational structure but also limited revenue generation capacity so far.

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4. Recommendations: Steps to Improve Financial Wellness

1. Improve Cash Flow Management:

   • Prioritize collection of receivables and manage payables to avoid liquidity crunch.
   • Consider short-term financing options or overdrafts to cover immediate working capital deficits.

2. Capital Injection:

   • Explore raising additional equity capital from shareholders or new investors to restore positive net assets and strengthen the balance sheet.
   • Alternatively, negotiate with creditors for extended payment terms or debt restructuring to reduce immediate liabilities.

3. Cost Control and Revenue Growth:

   • Tighten operational costs to conserve cash—review all discretionary spending.
   • Accelerate sales efforts or service delivery to improve revenue inflows and profitability.

4. Regular Financial Monitoring:

   • Establish monthly financial reviews focusing on cash flow forecasting and working capital management to detect distress symptoms early.
   • Engage with financial advisors or accountants to develop a turnaround plan if negative trends persist.

5. Risk Management:

   • Avoid taking on excessive new liabilities without clear repayment strategies.
   • Maintain open communication with stakeholders (creditors, suppliers) to manage expectations.

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In medical analogy terms: The company currently suffers from "financial hypovolemia" (low liquidity) and "balance sheet anemia" (negative equity), which impair its ability to function optimally. Immediate interventions are required to stabilize its financial "heartbeat" and restore healthy cash flow "circulation."

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