SITESET BUSINESS SUPPORT LTD

Executive Summary

SITESET BUSINESS SUPPORT LTD is currently facing significant liquidity and solvency challenges, with negative working capital and minimal equity remaining. While operationally stable and compliant with filings, the company must urgently improve cash flow and control costs to avoid financial distress. Prompt strategic and financial actions are recommended to restore health and ensure sustainable growth.

SITESET BUSINESS SUPPORT LTD - Analysis Report

Company Number: 13943373

Analysis Date: 2025-07-19 12:05 UTC

Financial Health Assessment: SITESET BUSINESS SUPPORT LTD

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1. Financial Health Score: D

Explanation:
The company exhibits significant financial distress symptoms, notably persistent negative net current assets (working capital) and a sharp decline in net assets over the last year. While still active and compliant with filing deadlines, the financial "vital signs" indicate strained liquidity and a fragile equity base. Immediate attention is required to stabilize cash flow and improve solvency.

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2. Key Vital Signs

Metric	31-Mar-2024	31-Mar-2023	Interpretation
Fixed Assets	£16,810	£21,081	Slight reduction in long-term assets; not alarming but suggests limited reinvestment.
Current Assets	£10,735	£3,246	Increase in short-term assets, mainly cash/debtors; a positive sign but still insufficient.
Current Liabilities	£27,376	£19,841	High short-term debts increased significantly; raises liquidity concerns.
Net Current Assets (Working Capital)	-£16,641	-£16,595	Negative and worsening; company may struggle to meet short-term obligations—symptom of distress.
Total Assets Less Current Liabilities	£169	£4,486	Sharp decline; indicates erosion of the buffer after covering current debts.
Net Assets (Equity)	£169	£4,486	Plummeted; close to zero equity signals financial fragility and potential insolvency risk.
Average Employees	2	2	Stable staffing level; small size consistent with Micro account classification.

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3. Diagnosis

SITESET BUSINESS SUPPORT LTD is currently in a precarious financial state characterized by:

• Liquidity Stress: Persistent negative working capital indicates the company does not have enough liquid resources to cover its short-term liabilities. This is akin to a patient with low blood pressure—there is insufficient "circulation" of cash to maintain healthy operations.

• Equity Erosion: The near depletion of net assets suggests accumulated losses or withdrawals have drained the company's financial reserves. This is a critical symptom resembling a weakened immune system, making the business vulnerable to shocks.

• Stable Operations but Limited Growth: The fixed asset base has slightly decreased, and employee count remains minimal. This points to limited reinvestment or expansion, potentially due to cash constraints.

• Compliance and Governance: The company is up-to-date with filings and has clear leadership with a single controlling person. No signs of legal or regulatory distress are evident, which is a positive sign akin to a patient adhering to prescribed treatment.

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4. Recommendations

To improve financial wellness and avoid further deterioration, the company should consider the following steps:

• Boost Liquidity:

  • Review and accelerate collection of receivables.
  • Negotiate extended payment terms with creditors to ease immediate cash outflows.
  • Consider short-term financing options or equity injections to strengthen working capital.

• Cost Control:

  • Evaluate operating expenses to identify non-essential costs that can be trimmed without impairing core services.
  • Assess staffing needs carefully to maintain efficiency.

• Asset Management:

  • Review fixed assets for potential sale or better utilization to generate cash.
  • Avoid unnecessary capital expenditures until financial stability improves.

• Financial Planning and Monitoring:

  • Implement rigorous cash flow forecasting to anticipate liquidity crunches.
  • Establish regular financial health "check-ups" to monitor key indicators and respond proactively.

• Strategic Review:

  • Consider revisiting the business model or customer mix to improve profitability.
  • Explore partnerships or new revenue streams aligned with core competencies.

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