SRP MINING LIMITED

Executive Summary

SRP Mining Limited is exhibiting significant financial distress, with declining liquidity and negative net assets signaling a precarious financial position. Immediate focus on cash flow management and capital restructuring is essential to restore financial health and avoid insolvency risks. Without swift corrective action, the company’s ability to continue as a going concern is uncertain.

SRP MINING LIMITED - Analysis Report

Company Number: 13588665

Analysis Date: 2025-07-29 13:23 UTC

Financial Health Assessment for SRP MINING LIMITED

---

1. Financial Health Score: D

Explanation:
SRP Mining Limited shows clear signs of financial distress in its latest financial year (2024). The company’s net assets have turned negative (£-433), indicating liabilities exceed assets, which is a critical symptom of financial weakness. Although the company maintains a positive net current asset position (£323), it has sharply declined from previous years. This deterioration requires urgent attention to avoid further decline.

---

2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Current Assets	8,680	16,664	Reduction in liquid resources and short-term assets, signaling potential cash flow strain.
Current Liabilities	8,357	12,334	Decrease in short-term obligations, but not proportionate to asset decrease.
Net Current Assets (Working Capital)	323	4,330	Working capital severely compressed, indicating reduced buffer to cover short-term debts.
Net Assets (Shareholders’ Funds)	-433	3,574	Negative net worth indicates shareholders’ equity has been eroded, a critical financial warning.
Accruals and Deferred Income	756	756	Consistent accrued liabilities, adding to short-term liabilities pressure.
Average Employees	0	0	No staff cost burden, but also no workforce to generate revenue, possibly indicating inactivity.

---

3. Diagnosis

The financial "symptoms" for SRP Mining Limited resemble a patient experiencing severe financial stress:

• Declining liquidity: A nearly 50% drop in current assets reduces the company's "healthy cash flow" and ability to meet immediate obligations, a worrying sign of cash crunch.
• Shrinking working capital: From £4,330 to £323, the working capital buffer is almost exhausted, akin to a patient losing vital energy reserves.
• Negative net assets: The equity base has been eroded from £3,574 positive to £433 negative, indicating the company’s liabilities are now outweighing its assets. This is a critical "symptom of distress" that may threaten business continuity.
• No employees: The absence of staff could indicate the company is either in a holding pattern or not operationally active, potentially limiting revenue generation.
• Micro company category: Filing under micro-entity provisions suggests limited scale and resources, which may constrain the ability to absorb financial shocks.

Overall, the diagnosis points to a company in a fragile financial state with a risk of insolvency if corrective actions are not taken swiftly.

---

4. Recommendations

To improve financial wellness and stabilize the company’s condition, consider the following interventions:

• Immediate cash flow management:
  Closely monitor and control cash inflows and outflows to maintain positive liquidity. Identify any overdue receivables or unnecessary expenses that can be trimmed.

• Capital injection or debt restructuring:
  Explore options for raising new equity capital or renegotiating liabilities to restore positive net assets and strengthen the balance sheet. This is akin to providing a "financial transfusion" to restore vitality.

• Operational review:
  Evaluate business activities to identify revenue generation opportunities or cost-saving measures. The lack of employees may necessitate outsourcing or automation to maintain operations efficiently.

• Regular financial monitoring:
  Implement monthly reviews of key financial metrics to detect early warning signs and respond proactively, much like routine health check-ups.

• Seek professional advice:
  Engage with financial advisors or insolvency practitioners to explore restructuring options if liquidity pressures persist or worsen.

---