TIME FOR YOU IPSWICH LTD

Executive Summary

TIME FOR YOU IPSWICH LTD is a recently established micro-entity showing early financial strain with negative net assets and working capital deficits indicating liquidity challenges. Immediate focus on improving cash flow, controlling costs, and possibly injecting fresh capital is essential to stabilize financial health and support sustainable growth. With prompt corrective action, the company can improve its financial prognosis and avoid deeper distress.

TIME FOR YOU IPSWICH LTD - Analysis Report

Company Number: 14692490

Analysis Date: 2025-07-29 12:03 UTC

Financial Health Assessment Report for TIME FOR YOU IPSWICH LTD

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1. Financial Health Score: D

Explanation:
The company exhibits signs of financial strain, primarily due to negative net assets and working capital deficiencies. As a newly incorporated micro-entity, some initial losses and investment are expected. However, the current balance sheet shows symptoms of distress that require attention. The grade "D" reflects a financial condition below healthy standards but with potential for recovery if corrective measures are taken promptly.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£16,624	Modest investment in long-term assets; typical for a micro start-up.
Current Assets	£5,035	Limited liquid resources to cover short-term obligations.
Current Liabilities	£23,988	High short-term debts relative to current assets.
Net Current Assets (Working Capital)	-£18,953	Negative working capital indicates liquidity stress; unable to meet immediate liabilities from current assets.
Net Assets (Shareholders' Funds)	-£3,565	Negative equity signals accumulated losses or capital shortfall.
Employees	2	Small workforce consistent with micro-entity status.

Interpretation:

• Negative net current assets ("working capital deficit") are a key symptom of liquidity pressure. The company may struggle to pay its short-term creditors on time, akin to a patient with low blood pressure that risks fainting without intervention.
• Negative shareholders’ funds indicate the company’s liabilities exceed its assets, reflecting "underlying weakness" in financial health. This is often a result of early losses or undercapitalization.
• The company’s fixed assets are minimal but reasonable for a start-up in cleaning services.
• The absence of a profit and loss account hinders insight into profitability or cash flow, but balance sheet signals caution.

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3. Diagnosis

TIME FOR YOU IPSWICH LTD is in its infancy (incorporated Feb 2023), and the financial snapshot as of March 2024 reveals early-stage challenges typical for start-ups: negative equity and a significant working capital deficit. These "symptoms of distress" could stem from initial operating losses, investment in assets, or delayed revenue inflows. While small in scale, the company's financial "vital signs" suggest it is operating with tight or insufficient liquidity, raising the risk of funding shortfalls.

The directors must be vigilant as persistent negative net assets and working capital could impair the company’s ability to sustain operations without additional capital injections or improved cash flow management. The presence of two directors who are also significant shareholders indicates control is concentrated, which can be beneficial for quick decision-making but also concentrates financial risk.

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4. Recommendations

To improve the financial wellness and prognosis of TIME FOR YOU IPSWICH LTD, the following actions are advised:

• Improve Liquidity Management:
  Increase current assets or reduce current liabilities to restore positive working capital. This may involve negotiating better payment terms with suppliers, accelerating receivables, or securing short-term financing.

• Capital Injection:
  Consider additional equity investment from shareholders or external investors to strengthen net assets and provide working capital buffer.

• Cost Control and Revenue Growth:
  Monitor operating expenses closely and explore opportunities to increase sales or diversify client base to drive profitability.

• Cash Flow Monitoring:
  Implement rigorous cash flow forecasting to anticipate shortfalls early and manage cash reserves prudently.

• Financial Reporting:
  While exempt from audit, consider preparing a detailed profit and loss account internally to better understand operational performance and identify cost drivers.

• Director Oversight:
  Directors should maintain close oversight on financial performance and compliance with filing deadlines to avoid penalties and reputational risk.

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