Company Number: 13145604

Analysis Date: 2025-07-20 13:49 UTC

Financial Health Assessment for SKINYOGA LTD (As of 31 January 2024)

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1. Financial Health Score: D

Explanation:
SKINYOGA LTD shows significant signs of financial strain, primarily reflected in its negative working capital and very low net assets relative to liabilities. The company is still operational but exhibits symptoms of financial distress that require immediate attention to avoid further deterioration.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	13,090	Small base of long-term assets, indicating limited investment in property or equipment.
Current Assets	19,570	Short-term resources like cash and receivables; increased from prior years but insufficient.
Current Liabilities	29,908	Obligations due within 1 year; significantly higher than current assets, signaling liquidity risk.
Net Current Assets	(10,338)	Negative working capital ("symptom of cash flow distress") means inability to cover short-term debts.
Shareholders Funds (Equity)	2,752	Low equity base; some improvement from previous years but still minimal for a going concern.
Employees	1	Very small workforce, typical for a micro-entity, limiting operational scale.

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3. Diagnosis

Symptoms Analysis:

• Negative Working Capital: The company’s current liabilities exceed current assets by £10,338, indicating it may struggle to meet short-term obligations without additional financing or cash inflows. This is akin to a patient with insufficient blood flow to vital organs.
• Low Equity and Asset Base: Shareholders’ funds remain very low at £2,752, though an improvement from £1 in previous years. The fixed assets have increased to £13,090, but the overall asset base remains small. This suggests limited financial muscle to absorb shocks or invest in growth.
• No Audit and Limited Financial Disclosure: The company qualifies as a micro-entity and has elected not to include a profit and loss account in its filings, limiting transparency on profitability and cash flow trends—this is like missing a key part of the medical test results.
• Single-person Operation: With only one employee (the director), operational capacity is constrained, which may impact the ability to scale or manage financial distress effectively.
• Improving Equity: The increase in shareholders’ funds from £1 to £2,752 indicates some capital injection or retained earnings, which is a positive sign but still very modest.

Overall Condition:
SKINYOGA LTD is currently in a fragile financial state with "symptoms" of liquidity stress and limited capital buffer. Without intervention, this could escalate to more severe financial distress or insolvency.

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4. Prognosis and Recommendations

Prognosis:
If the current trajectory continues without improved cash management or capital infusion, the company risks ongoing liquidity problems that may impair operations and creditor relationships. However, the fact that the company remains active and has increased its equity base offers a window for corrective action.

Recommendations:

1. Improve Liquidity Management:

   • Prioritize collection of receivables and optimize inventory levels to increase current assets.
   • Negotiate extended payment terms with suppliers to reduce immediate liabilities.

2. Capital Injection:

   • Consider additional equity funding from the director or external investors to strengthen the balance sheet and provide working capital.

3. Financial Monitoring and Reporting:

   • Prepare full profit and loss statements to better assess profitability and cash flow trends. This will aid in early detection of financial issues ("regular health check-ups").
   • Implement basic cash flow forecasting to anticipate shortfalls.

4. Cost Control and Operational Efficiency:

   • Given the single-employee structure, evaluate if outsourcing or automation can reduce costs and improve service delivery.

5. Seek Professional Advice:

   • Engage with financial advisors or insolvency practitioners early if liquidity worsens, to explore restructuring options before symptoms become critical.

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Executive Summary

SKINYOGA LTD is currently exhibiting symptoms of financial distress, primarily due to negative working capital and a very limited equity base. Although the company remains active with some modest capital improvements, it faces liquidity risks that require urgent action to stabilize cash flow and strengthen its financial position. Immediate focus on cash management, capital injection, and enhanced financial reporting will improve its prospects for sustainable operations.