SUBLIME CONCEPTS LTD

Executive Summary

SUBLIME CONCEPTS LTD, a startup with significant investment in intangible assets, faces liquidity challenges with minimal cash and negative working capital. While the company’s asset base reflects potential future value, immediate financial stress requires urgent cash flow management and funding strategies to ensure operational sustainability and growth prospects.

SUBLIME CONCEPTS LTD - Analysis Report

Company Number: 14778289

Analysis Date: 2025-07-20 16:37 UTC

Financial Health Assessment Report for SUBLIME CONCEPTS LTD

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1. Financial Health Score: D

Explanation:
SUBLIME CONCEPTS LTD is in its first full financial year (incorporated April 2023, accounts to April 2024). The company shows very limited cash resources (£107) and net current liabilities of £26,846, indicating working capital deficiency. While total net assets are positive (£154) due to intangible assets (patents), the company's short-term liquidity is under distress. This results in a below-average financial health score reflecting early-stage operational challenges and liquidity constraints.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash at Bank	107	Critically low cash balance, indicating very limited liquid funds available for operations.
Current Liabilities	26,953	Short-term debts are significant relative to cash and current assets.
Net Current Assets (Working Capital)	-26,846	Negative working capital signals potential difficulty in meeting short-term obligations.
Intangible Fixed Assets	27,000 (net)	Investment in patents/licences, a long-term asset with potential value but not liquid.
Total Net Assets (Shareholders Funds)	154	Marginal equity base, indicating a very thin capital buffer after liabilities are accounted for.
Employee Count	0	No employees reported, suggesting minimal operational complexity or early development phase.

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3. Diagnosis

The company’s financial "vital signs" reveal symptoms of liquidity stress: very low cash reserves and negative working capital mean the company may struggle to cover immediate debts and operational expenses without additional financing or cash inflows. The significant intangible assets (patents) reflect investment in intellectual property, which is a positive sign for future value creation but offers no immediate cash relief.

The absence of employees and the fact that this is the first financial period suggest the company is in startup mode, focusing on development rather than generating revenue. The director’s current accounts owing £26,232 within creditors indicate that the director has likely provided funding or deferred payments, which is common in early-stage ventures but also a risk if external funding is limited.

Overall, the company appears to be in a fragile but typical early-stage condition, with adequate long-term asset investment but strained short-term financial health, requiring close management of cash flow and liabilities.

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4. Recommendations

• Improve Cash Flow Management: Prioritize securing working capital through equity injections, director loans, or short-term financing to cover current liabilities and avoid liquidity crisis.
• Monitor and Control Costs: Maintain strict control over operating expenses, delaying non-essential spending until cash flow stabilizes.
• Accelerate Revenue Generation: Develop and implement commercial strategies to monetize patents or related services to create a healthy cash inflow.
• Director Funding Transparency: Formalize director loans or contributions with clear terms to ensure sustainable funding and avoid future disputes.
• Plan for External Funding: Consider approaching investors, grants, or government startup support schemes to strengthen the financial base.
• Regular Financial Reviews: Implement monthly cash flow forecasting and financial health monitoring to detect and address distress symptoms early.

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