Company Number: 12515713

Analysis Date: 2025-07-20 13:32 UTC

Financial Health Assessment of SURRIA LTD (as at 31 March 2024)

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1. Financial Health Score: D

Explanation:
SURRIA LTD exhibits signs of financial strain primarily due to a liquidity crunch and a negative working capital trend. Despite having tangible fixed assets, the company's ability to cover short-term liabilities with current assets is weak, reflecting symptoms of distress. The minimal net asset base and reliance on long-term borrowings further constrain financial flexibility.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Cash	4,426	Very low cash reserves, indicating tight liquidity.
Current Liabilities	181,722	Large current liabilities relative to assets.
Net Current Assets (Working Capital)	-3,932	Negative working capital; unable to meet short-term obligations without additional funding.
Tangible Fixed Assets (Land & Buildings)	187,007	Significant fixed asset base, potentially illiquid but valuable.
Net Assets (Shareholders’ Funds)	1,353	Minimal equity cushion; risk of insolvency if losses occur.
Loans from Directors	59,732 (4,010 + 55,722)	Considerable director loans, possibly vital for survival.
Bank Loans (Long-term debt)	126,000	Substantial long-term debt load.
Profit & Loss Reserve	1,253	Small retained earnings, reflecting limited profitability or recent losses.

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3. Diagnosis: What the Financial Data Reveals

SURRIA LTD’s financial "vital signs" show a company struggling with liquidity and working capital management. The negative net current assets indicate that the company does not have enough short-term resources to cover immediate obligations—a classic symptom of financial distress. This could lead to cash flow difficulties if not managed carefully.

The company possesses substantial tangible fixed assets (land and buildings), which act as a long-term strength or collateral. However, these assets are not easily converted into cash to meet urgent liabilities. The modest net asset value and shareholders’ funds reveal a thin equity buffer, increasing vulnerability to shocks.

The reliance on loans from directors and bank loans demonstrates external financing is critical to business operation. These debts must be managed prudently to avoid insolvency risks.

No employees are recorded, suggesting the company might be in a holding capacity or asset management phase rather than active trading.

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4. Recommendations: Improving Financial Wellness

• Improve Liquidity and Working Capital:
  Focus on increasing cash reserves to avoid the "cash flow blockage" symptom. This could involve negotiating better payment terms with creditors or accelerating receivables collection if applicable.

• Debt Restructuring:
  Explore restructuring long-term debt and director loans to ease immediate cash pressure, possibly through refinancing or extending repayment terms.

• Asset Utilisation:
  Consider leveraging the substantial land and buildings — either via sale, lease, or refinance — to inject cash into operations.

• Financial Planning and Monitoring:
  Establish regular cash flow forecasts and financial health dashboards to detect early warning signs of distress and act proactively.

• Operational Review:
  Assess the company’s business model and cost structure given the lack of employees and low profitability to identify potential efficiencies or strategic pivots.

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Medical Analogy Summary

SURRIA LTD’s financial health resembles a patient with a strong skeletal system (fixed assets) but poor blood circulation (cash flow), showing symptoms of liquidity distress. Without intervention to boost the "circulatory system" (working capital and cash), the company risks a financial crisis despite having valuable "bone structure." Timely "treatment" via financial restructuring and liquidity management is essential for recovery.

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