Company Number: 14252681

Analysis Date: 2025-07-20 14:17 UTC

Financial Health Assessment for Sushi Wycombe Limited

---

1. Financial Health Score: D

Explanation:
The company exhibits signs of financial distress, reflected in negative net assets and working capital. The micro-entity status and early stage of operation limit financial complexity, but the current liabilities significantly exceed current assets, indicating liquidity challenges. The "D" grade suggests the company is struggling to maintain a healthy financial position and should address its liquidity and capital structure issues promptly.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	3,852	Small investment in long-term assets, typical for a startup.
Current Assets	1,005	Very low short-term assets, indicating limited cash or receivables.
Current Liabilities	5,713	Obligations due within one year exceed liquid resources.
Net Current Assets	-4,708	Negative working capital, sign of liquidity strain ("symptom of distress").
Total Assets less Current Liabilities	-856	Negative net assets, indicating liabilities exceed assets.
Shareholders' Funds (Equity)	-856	Negative equity, meaning the company is technically insolvent on balance sheet basis.
Number of Employees	1	Very small workforce, reflecting micro-entity scale.

---

3. Diagnosis

Liquidity and Working Capital:
The company shows "symptoms of distress" in liquidity—current liabilities are over five times current assets, suggesting difficulty in meeting short-term obligations without additional financing or cash inflows. Negative net current assets (working capital) is a critical warning sign that the company may struggle to pay suppliers, creditors, or operational expenses on time.

Capital Structure:
Negative net assets and shareholders' funds reveal that the company's total debts and liabilities exceed its total assets. This "diagnostic" is concerning as it implies the company’s financial foundation is weak and it is technically insolvent at the reporting date. However, as a recently incorporated business (July 2022) operating in a micro category, this may reflect startup losses and initial investment phases rather than chronic insolvency.

Operational Scale:
With only one employee (likely a director) and operating in the take-away food sector, the company is in its infancy with minimal asset base and cash reserves. The rapid turnover of directors and shareholders controlling 75-100% shares indicates possible restructuring or ownership changes, which could impact stability.

Compliance:
The company has maintained timely filing of accounts and confirmation statements, indicating regulatory compliance and good administrative health.

---

4. Recommendations

1. Improve Liquidity ("Healthy Cash Flow")

• Enhance cash inflows by increasing sales or accelerating receivables collection.
• Negotiate better payment terms with suppliers to reduce immediate cash outflows.
• Consider short-term financing options or shareholder loans to bridge liquidity gaps.

2. Strengthen Capital Base

• Inject additional equity capital from existing shareholders or new investors to restore positive net assets.
• Explore grants or government support schemes available to micro food service businesses.

3. Cost Management

• Review operational costs rigorously to reduce overhead and improve margins.
• Limit non-essential expenditure until the company attains stable cash flow.

4. Monitor Financial Health Regularly

• Implement monthly cash flow forecasts and working capital analysis to detect early signs of distress.
• Engage professional financial advice to create a turnaround plan if necessary.

5. Operational Stability

• Ensure management continuity and clear strategic direction to build investor and creditor confidence.

---