TREVELL LIMITED

Executive Summary

Trevell Limited exhibits early-stage financial strain with low liquidity and negative equity despite significant fixed assets funded by director loans. Immediate focus on improving cash flow and managing debt is essential to prevent financial distress and support sustainable growth.

TREVELL LIMITED - Analysis Report

Company Number: 14850175

Analysis Date: 2025-07-29 20:19 UTC

Financial Health Assessment of Trevell Limited (as of 31 May 2024)

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1. Financial Health Score: D

Explanation:
Trevell Limited shows early-stage financial distress signs due to negative net assets and current liabilities exceeding current assets. While the business holds tangible fixed assets, significant liabilities and working capital deficits suggest financial strain. This score reflects a need for urgent attention to liquidity management and capital structure.

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2. Key Vital Signs

Metric	Value	Interpretation
Cash on Hand	£23	Critically low cash reserves; “dehydrated” liquidity
Current Liabilities	£89,998	High short-term debts relative to cash and assets
Net Current Assets (Working Capital)	£-677	Negative working capital; symptoms of cash flow stress
Fixed Assets (Tangible)	£89,977	Significant investment in long-term assets (“body mass”)
Total Assets Less Current Liabilities	£89,300	Reflects fixed assets minus current debts
Creditors Due After One Year	£89,998	Director’s loan; long-term financing but large debt load
Net Assets (Equity)	£-698	Negative shareholder equity; “capital anemia”
Shareholders’ Funds	£-700	Reflects accumulated losses or deficits

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3. Diagnosis: Financial Condition Overview

Liquidity & Cash Flow:
Trevell Limited shows severe liquidity constraints, with only £23 in cash and current liabilities of nearly £90,000. The company’s working capital is negative, indicating an inability to meet short-term obligations from its current assets. This is akin to a patient with very low hydration levels struggling to maintain essential bodily functions.

Capital Structure & Solvency:
The company has invested heavily in tangible fixed assets (£89,977), mostly represented by land and buildings, likely reflecting its construction business. However, this “body mass” is financed largely through a director's loan (£89,998), creating a high leverage scenario. With net liabilities of £698, the company is effectively “underweight” in terms of shareholder equity, indicating a precarious solvency position.

Business Activity & Profitability:
No employees were reported, and no profit and loss data is provided. Negative equity and accumulated losses imply the company has yet to generate positive retained earnings, possibly due to its recent incorporation (May 2023) and early operational phase.

Governance & Control:
The directors, Mr John Robert Trevell and Mrs Cia Cherise Trevell, hold significant control and have provided substantial financing via loans. This close control can be beneficial for quick decision-making but also concentrates financial risk.

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4. Recommendations: Steps to Improve Financial Wellness

• Improve Liquidity:
  The “healthy cash flow” is critical. Prioritize generating operational cash inflows or injecting working capital to reduce the risk of insolvency. Consider short-term financing or equity injection to cover immediate cash needs.

• Manage Debt Levels:
  The director's loan is a substantial liability. Explore restructuring options to convert some debt into equity or negotiate longer repayment terms to ease cash flow pressure.

• Enhance Working Capital:
  Develop strategies to increase current assets (e.g., faster debtor collections, inventory management) while controlling current liabilities to restore positive working capital.

• Profitability Focus:
  Initiate or accelerate revenue-generating activities, leveraging the fixed asset base. Monitor costs closely to avoid further losses.

• Governance and Reporting:
  Maintain clear financial records and consider preparing profit and loss accounts to better track performance and inform decisions.

• Seek Professional Advice:
  Engage financial advisors or accountants to assist in cash flow forecasting, financial restructuring, and strategic planning to prevent worsening financial distress.

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Executive Summary

Trevell Limited is in an early but fragile financial state, characterized by minimal cash, negative working capital, and reliance on director loans to fund fixed assets. While the company holds valuable long-term assets, its liquidity and solvency are strained, posing risks to ongoing operations. Immediate measures are needed to boost cash flow, manage liabilities, and enhance profitability to stabilize financial health.