SOUTH ARMAGH BUSINESS IMPROVEMENT GROUP LIMITED

Executive Summary

South Armagh Business Improvement Group Limited is currently dormant with no trading activity, reflected in a modest negative working capital and equity position. While regulatory compliance is maintained, the company shows symptoms of inactivity and financial stagnation. Strategic decisions to either commence trading with appropriate capital support or consider dissolution are recommended to restore or conclude financial health.

SOUTH ARMAGH BUSINESS IMPROVEMENT GROUP LIMITED - Analysis Report

Company Number: NI678870

Analysis Date: 2025-07-29 19:51 UTC

Financial Health Assessment of SOUTH ARMAGH BUSINESS IMPROVEMENT GROUP LIMITED

---

1. Financial Health Score: Grade D

Explanation:
The company is currently dormant and has not conducted trading activities, reflected in static financials and net current liabilities exceeding current assets. The negative net current assets and shareholder funds indicate financial distress at a working capital level, although this is typical for a dormant entity. The overall financial health is weak due to inactivity and a deficit position, earning a grade D — indicating significant caution but not immediate insolvency.

---

2. Key Vital Signs

Metric	2024 Figure	Interpretation
Trading Activity	Dormant	No active trading or revenue generation — “metabolic rate” of the business is minimal.
Current Assets	£1,772	Limited short-term resources available to cover debts.
Current Liabilities	£2,550	Debts and obligations due within one year.
Net Current Assets	-£778	Negative working capital — a symptom of liquidity strain if the company were trading.
Shareholders' Funds	-£778	Negative equity position, indicating accumulated losses or initial capital deficit.
Employee Count	Nil	No staff, consistent with dormant status.
Audit Status	Exempt	Dormant exemption applies; no audit performed, but financials are prepared and filed timely.
Filing Deadlines	Up to date	Accounts and confirmation statements filed on time, indicating good compliance health.

---

3. Diagnosis

Symptoms Analysis:
The company exhibits classic signs of a dormant entity — no turnover, no employees, and static balance sheet figures over multiple years. The negative net current assets and shareholder funds reflect that liabilities exceed assets by £778, a modest deficit likely reflecting start-up or pre-operational costs rather than active financial distress. There is no indication of trading losses or cash flow problems because no trading has occurred.

Underlying Business Health:
The “patient” here is essentially in a state of suspended animation — no active operations to generate either symptoms of strength (profits, cash generation) or distress (losses, cash crunch). The dormant status limits meaningful financial analysis beyond noting the minor negative equity. The company appears compliant with regulatory requirements, demonstrating good governance “vital signs.”

---

4. Recommendations for Financial Wellness

• Activate or Dissolve: Evaluate the strategic intent. If the company plans to commence trading, prepare a clear business plan to build positive working capital, generate revenue, and restore equity health. If no trading is planned, consider formal dissolution to avoid ongoing administrative costs.

• Capital Injection: Should trading commence, a capital injection or shareholder loan may be necessary to cure the current negative equity “deficit,” improving the liquidity “blood flow” and enabling operational resilience.

• Monitoring Compliance: Continue timely filing of accounts and confirmation statements to maintain regulatory “immune system” integrity and avoid penalties.

• Financial Planning: If activation is imminent, implement budgeting and forecasting systems to monitor cash flow and working capital, ensuring early detection of liquidity symptoms.

• Directors’ Review: Directors should regularly review the company’s dormant status and financial position to ensure the company’s “health” aligns with its strategic goals.

---