S&S AUTOMOBILE LTD

Executive Summary

S&S AUTOMOBILE LTD is currently in a precarious financial position with negative net assets and insufficient liquidity to meet short-term obligations, reflecting critical distress. Immediate capital injection and stringent cash flow management are essential to stabilise the company and avoid insolvency. As a recently incorporated micro-entity, careful operational planning and financial monitoring will be vital for recovery.

S&S AUTOMOBILE LTD - Analysis Report

Company Number: 14862918

Analysis Date: 2025-07-19 12:53 UTC

Financial Health Assessment for S&S AUTOMOBILE LTD

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1. Financial Health Score: F

Explanation:
The company exhibits critical financial distress indicated by negative net assets and a severe imbalance between current liabilities and current assets. This grade reflects a serious "symptom of distress," akin to a patient showing signs of organ failure in a clinical setting, requiring urgent intervention.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	3	Extremely low liquidity; akin to a patient with minimal blood volume.
Current Liabilities	2,254	High short-term obligations putting immediate pressure on cash flow.
Net Current Assets (Working Capital)	-2,251	Negative working capital signals inability to cover short-term debts.
Net Assets (Equity)	-2,251	Company is insolvent on a balance sheet basis; liabilities exceed assets.
Shareholders’ Funds	-2,251	Negative equity indicates the business owes more than it owns.
Employee Count	0	No staff, possibly indicating a startup phase or minimal operations.

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3. Diagnosis: What the Financial Data Reveals

The company shows "symptoms of financial distress" with a dangerously low liquidity position and a significant deficit in net assets. The low current asset base (£3) contrasted with high current liabilities (£2,254) means the company is unable to meet its short-term obligations, a critical "warning sign" analogous to a patient struggling to maintain vital functions.

Negative shareholders’ funds (equity) mean the company’s liabilities exceed its assets, indicating insolvency at this stage. This could be due to initial start-up costs, early losses, or poor capitalisation. The absence of employees might point to a very early phase of operations or minimal business activity to date.

Being a micro-entity incorporated less than one year ago (May 2023), this financial snapshot may reflect the company's initial formation phase with capital invested offset by liabilities such as loans or unpaid expenses.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Urgent Capital Injection: To restore "healthy blood flow," the company needs fresh equity or a loan to boost current assets and cover liabilities.
• Cost Control and Cash Flow Management: Minimise operational expenses and prioritise cash inflows to stabilise liquidity.
• Review Liabilities: Negotiate terms with creditors to extend payment deadlines or reduce amounts owed.
• Operational Planning: Develop a clear business plan to generate revenue promptly, as current asset levels are insufficient.
• Monitoring and Reporting: Implement monthly financial reviews to detect early warning signs and track recovery progress.
• Seek Professional Advice: Engage with financial advisors or turnaround specialists to guide restructuring and recovery.

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