THE WOBBLEBOX LIMITED

Executive Summary

THE WOBBLEBOX LIMITED shows signs of financial strain with negative working capital and net liabilities indicating ongoing cash flow and solvency challenges. As a young company in the IT services sector, it needs targeted financial management, capital support, and operational efficiency improvements to stabilize and grow. Immediate attention to liquidity and funding will improve its financial health outlook.

THE WOBBLEBOX LIMITED - Analysis Report

Company Number: 14488385

Analysis Date: 2025-07-29 13:14 UTC

Financial Health Assessment of THE WOBBLEBOX LIMITED (as at 30 November 2024)

---

1. Financial Health Score: D

Explanation:
THE WOBBLEBOX LIMITED is currently in a precarious financial condition, displaying multiple symptoms of financial distress. The company’s net liabilities and negative shareholders’ funds indicate it is operating with a capital deficit. Immediate strategic financial management is necessary to restore stability.

---

2. Key Vital Signs (Critical Financial Metrics)

Metric	Value (2024)	Interpretation
Current Assets	£8,911	Limited liquid assets available to cover short-term obligations, very low for operational needs.
Current Liabilities	£39,999	Obligations due within one year, significantly exceeding current assets.
Net Current Assets	-£31,088	Indicates a working capital deficit; "symptom of cash flow strain."
Net Assets (Total Equity)	-£25,797	Negative net worth, signaling accumulated losses or undercapitalisation.
Shareholders’ Funds	-£25,797	Mirror of net assets, confirming shareholders’ investment is currently eroded.
Provisions for Liabilities	£6,051	Potential future obligations recognized, adding to financial burden.
Accruals and Deferred Income	-£760	Minor timing differences in expenses/income recognition.
Company Age	~2 years	Very young company, still in early growth or development phase.
Control	100% by one director (Craig James Fleming)	Single-person control can be agile but also a risk if financial oversight is limited.

---

3. Diagnosis: What the Financial Data Reveals About Business Health

The company is showing clear signs of financial distress:

• Working Capital Deficiency ("Unhealthy Cash Flow"): The net current liabilities of over £31,000 demonstrate the company does not have sufficient short-term resources to meet its immediate obligations. This condition can lead to liquidity crises if not remedied.

• Negative Net Worth ("Capital Deficit"): With net assets and shareholders’ funds both negative, the company’s liabilities exceed its assets by a significant margin. This indicates accumulated losses or insufficient capital injection since incorporation.

• Young Company with Growing Pains: Being incorporated in late 2022 and filing micro-entity accounts, it is common for startups to have initial losses. However, sustained negative equity over two years is a red flag for solvency.

• No Audit and Limited Financial Disclosure: As a micro-entity, the company is exempt from audit, which means financial data is unaudited. While common at this scale, it reduces external assurance on accuracy.

• Industry Context: Operating in "Other IT service activities" suggests potential for scalable growth if operational issues are resolved, but also exposure to competitive market pressures.

---

4. Recommendations: Specific Actions to Improve Financial Wellness

1. Improve Liquidity Management

   • Negotiate with creditors to extend payment terms or reduce immediate liabilities.
   • Focus on accelerating cash inflows, e.g., quicker client payments or upfront deposits.

2. Capital Injection

   • Consider additional equity investment by the sole shareholder or external investors to shore up net assets and restore financial stability.

3. Cost Control and Operational Efficiency

   • Review all operating expenses to identify cost-saving opportunities without impairing growth potential.

4. Financial Planning and Forecasting

   • Develop detailed cash flow forecasts to anticipate liquidity shortfalls and plan financing accordingly.

5. Explore Funding Options

   • Investigate short-term financing such as overdrafts, invoice financing, or government-backed loans designed for startups.

6. Regular Financial Monitoring

   • Establish monthly financial health checks focusing on cash flow and working capital metrics.

7. Professional Financial Advice

   • Engage with a financial consultant or business advisor to implement turnaround strategies and improve financial reporting.

---

Medical Analogy Summary

THE WOBBLEBOX LIMITED currently exhibits "symptoms of financial distress" akin to a patient with a weakened cardiovascular system — negative working capital is the "poor pulse" indicating the company struggles to circulate sufficient cash to meet obligations. The "capital deficit" represents a "low blood pressure" state where the company’s financial reserves are insufficient. Without prompt intervention (capital injection, operational adjustments), the prognosis may worsen, leading to insolvency risks.

---