STABLE AND GROUND LTD

Executive Summary

STABLE AND GROUND LTD is showing clear signs of financial distress, including the loss of fixed assets and a near-total depletion of equity, which places the company in a fragile financial position. Immediate actions including capital injection, asset reinvestment, and cash management are crucial to stabilize operations and restore financial health. Without intervention, the company risks further deterioration of its financial vitality.

STABLE AND GROUND LTD - Analysis Report

Company Number: 13023983

Analysis Date: 2025-07-29 16:14 UTC

Financial Health Assessment Report for STABLE AND GROUND LTD

---

1. Financial Health Score: D

Explanation:
The company currently exhibits symptoms of financial distress characterized by a significant erosion of asset value and working capital challenges. The drastic drop in net assets from £12,679 in 2023 to only £100 in 2024—a 99% decline—is a clear warning sign. This score reflects a fragile financial condition requiring urgent attention to restore vitality.

---

2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	0	94,550	Complete loss of fixed assets; possible disposal or write-off
Current Assets	100	8,102	Extremely low liquidity; cash and receivables nearly depleted
Current Liabilities	0	89,973	All short-term debts cleared or written off
Net Current Assets	100	(81,871)	Shift from negative to slightly positive working capital due to removal of liabilities
Net Assets (Equity)	100	12,679	Drastic equity erosion; shareholder funds almost wiped out
Share Capital	2	2	Minimal paid-in capital; no significant equity buffer

Interpretation of Vital Signs:

• The disappearance of fixed assets suggests either asset sales, write-downs, or impairment—this is a critical symptom akin to losing vital organs in a patient.
• Current assets are close to negligible, indicating minimal cash or short-term resources to fund operations.
• The elimination of current liabilities implies debts were settled, written off, or converted, which improves immediate liquidity but may mask deeper financial stress.
• The net asset position is critically low, signaling a dangerously thin equity cushion to absorb losses or shocks.

---

3. Diagnosis

Underlying Business Health:

• The company appears to have undergone a severe financial restructuring or asset disposal during the 2024 financial year, leading to the loss of fixed assets valued at nearly £95,000.
• While current liabilities have been eliminated, this likely reflects debt repayment or write-off rather than improved profitability or cash generation.
• The net current asset position has modestly improved from negative to positive, but the absolute value is very low, indicating fragile working capital.
• The equity base is almost nonexistent, which compromises the company's ability to secure financing or absorb operational setbacks.
• With only one employee on average and minimal capital invested, the company may be operating at a very small scale or transitioning business strategy.
• The company changed its name from "JAMIE'S COFFEE LIMITED" to "STABLE AND GROUND LTD" in May 2025, possibly signaling a rebranding or strategic pivot.
• The industry (retail sale of beverages in specialised stores) typically requires inventory, operational expenses, and working capital, none of which are reflected strongly in the current asset position.

Summary Diagnosis:
STABLE AND GROUND LTD is in a precarious financial state with very limited resources, minimal equity, and no fixed assets, akin to a patient who has lost critical bodily functions but is still breathing. The company is vulnerable to operational disruptions or unforeseen expenses and may struggle to sustain normal business activities without immediate intervention.

---

4. Recommendations

1. Capital Injection:
   Inject fresh equity or secure external funding to rebuild a financial buffer. This is analogous to supplying vital nutrients to restore health.

2. Asset Reinvestment:
   Consider acquiring or leasing essential fixed assets to support operations, as the complete absence of assets limits productive capacity.

3. Cash Flow Management:
   Implement strict cash flow controls and monitor liquidity daily to avoid running into critical shortages.

4. Cost Control and Operational Review:
   Conduct a detailed review of operating costs and business model viability to identify areas for efficiency and potential revenue growth.

5. Strategic Business Review:
   Evaluate the rationale behind the recent name change and consider whether the business model aligns with market demands and financial capacity.

6. Engage Professional Advisors:
   Seek advice from financial consultants or turnaround specialists to design a sustainable recovery plan.

---