SLICEDPEAR LTD

Executive Summary

SLICEDPEAR LTD currently demonstrates a stable financial condition with positive net assets and working capital, but recent declines in liquidity and equity highlight emerging financial stress. While not in distress, the business should prioritize cash flow management and cost control to restore its financial vitality and ensure sustainable operations. Proactive monitoring and strategic adjustments will support improved financial wellness going forward.

SLICEDPEAR LTD - Analysis Report

Company Number: 13833787

Analysis Date: 2025-07-20 14:02 UTC

Financial Health Assessment for SLICEDPEAR LTD

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1. Financial Health Score: C+

Explanation:
SLICEDPEAR LTD exhibits a generally stable financial position with positive net assets and net current assets, indicating it is solvent and able to cover short-term obligations. However, there is a noticeable decline in both current assets and net assets in the most recent year, which signals emerging concerns about liquidity and capital preservation. The company operates on a micro scale with a single employee and limited fixed assets, consistent with a small consultancy firm. The financial "vital signs" suggest moderate health but with symptoms indicating the need for cautious monitoring and corrective action.

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2. Key Vital Signs:

Metric	2025 Value (£)	Trend Since 2024	Interpretation
Fixed Assets	1,655	↓ (from 2,085)	Minimal investment in long-term assets; typical for a consultancy.
Current Assets	47,508	↓ (from 91,792)	Significant drop in liquid assets/cash and receivables; potential liquidity tightening.
Current Liabilities	17,078	↓ (from 42,054)	Reduced short-term obligations; positive but may reflect reduced operations.
Net Current Assets (Working Capital)	30,430	↓ (from 49,738)	Healthy working capital remains but has decreased substantially, indicating less buffer for day-to-day operations.
Net Assets (Shareholders' Funds)	32,085	↓ (from 51,823)	Equity base has shrunk, suggesting retained losses or distributions exceeding profits.
Employee Count	1	No change	Very lean operation, limiting overhead but also growth capacity.

Interpretation:
The company maintains a positive net asset position, meaning it is not insolvent ("healthy heart"). However, the marked reduction in current assets and net assets signals symptoms of financial "stress," possibly due to reduced revenues, increased costs, or withdrawals by the owner. The stable but low fixed asset base aligns with the business type and is not a concern.

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3. Diagnosis:

SLICEDPEAR LTD is in a stable but cautious financial condition. The company is solvent with positive working capital, indicating it can meet short-term obligations. The reduction in key asset balances and equity suggests some financial strain or a contraction phase in the business lifecycle. Given the firm is a micro-entity management consultancy with a sole director/shareholder who controls 100% of the voting rights and shares, business decisions may be highly centralized, and cash flow management critical.

The "symptoms" of decline in liquidity and net assets may be due to:

• Lower client billing or delayed receipts impacting cash.
• Increased expenses or owner drawings exceeding profits.
• Potentially conservative asset management leading to reduced cash buffers.

No indications of immediate distress such as negative net assets or overdue filings are present, which is a positive "vital sign." However, the downward trend requires attention to prevent further deterioration.

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4. Recommendations:

To improve financial wellness and strengthen the company's "financial pulse," the following steps are advisable:

1. Cash Flow Management:

   • Conduct detailed cash flow forecasting to anticipate shortfalls.
   • Accelerate receivables collection and manage payables prudently.

2. Profitability Review:

   • Analyze income and expenses to identify cost-saving opportunities or revenue enhancement strategies.
   • Consider diversifying client base or service offerings to stabilize income streams.

3. Capital Preservation:

   • Avoid excessive drawings or distributions that erode shareholder funds.
   • Retain earnings where possible to rebuild net assets and working capital.

4. Financial Monitoring:

   • Implement regular financial health checks using key ratios like current ratio, quick ratio, and net asset trend analysis.
   • Engage with a financial advisor or accountant periodically for an external perspective.

5. Business Development:

   • Explore opportunities for growth carefully, balancing expansion with financial capacity.
   • Maintain lean operations but invest strategically in assets or technology that can improve efficiency and client service.

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