Company Number: 13026832

Analysis Date: 2025-07-20 17:38 UTC

Financial Health Assessment Report for UNICHEM SLOVENIA LIMITED

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1. Financial Health Score: D

Explanation:
The company is currently showing signs of financial strain despite improvements in working capital. Negative net assets and negative shareholders’ funds indicate a financial "ailment" that needs prompt attention. While there is some "healthy cash inflow" reflected in improved current assets, the overall balance sheet shows symptoms of distress with liabilities exceeding assets.

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2. Key Vital Signs

Metric	Latest (2024)	Interpretation
Current Assets	£26,844	Good short-term resource base; indicates potential liquidity.
Current Liabilities	£28,657	Slightly higher than current assets; however, includes long-term portion, requires clarification.
Net Current Assets (Working Capital)	£26,312	Positive and healthy sign showing the company can cover short-term debts.
Net Assets / Shareholders’ Funds	£-2,345	Negative value indicates liabilities exceed total assets; "symptom of financial weakness".
Share Capital	£1.00	Minimal equity base; limited buffer against losses.
Employees	0	No staff; may signify limited operational activities or automation.

Notes on Metrics:

• The large increase in current assets from £120 in 2023 to £26,844 in 2024 is a positive sign, showing an improved liquidity position ("healthy cash flow").
• However, the company carries significant liabilities, including £28,657 falling due after more than one year, which contributes to negative net assets.
• Negative net assets imply the company is "underweight" financially, akin to a patient with low reserves, limiting financial resilience.

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3. Diagnosis

The company has shown improvement in its short-term liquidity ("vital signs of life"), as evidenced by the jump in current assets and net current assets (working capital). This suggests better management of receivables, cash, or inventory.

However, the persistent negative net assets and shareholders’ funds reveal underlying financial distress. The company's liabilities outweigh its assets, indicating it is "operating in the red zone" and may be relying on creditor financing or other forms of debt to sustain operations. The absence of employees suggests minimal operational complexity, possibly a holding or intermediary company, but this also limits revenue generation potential.

The company’s micro-entity status means it benefits from simplified reporting, but the limited equity base and ongoing negative net worth are warning signs that the company’s financial "immune system" is compromised. Without intervention, this condition might deteriorate, risking solvency if liabilities cannot be serviced.

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4. Recommendations

To improve financial wellness and move towards "full recovery," the company should consider the following actions:

• Strengthen Equity Base: Injection of additional share capital or retained earnings to bolster shareholders’ funds and improve net asset position.
• Liability Management: Negotiate with creditors to restructure or reduce long-term liabilities, improving balance sheet health.
• Enhance Cash Flow Management: Maintain or improve the positive working capital by accelerating receivables collection and controlling payables.
• Operational Review: Assess the business model given zero employees to ensure sustainable revenue streams and cost structures.
• Regular Financial Monitoring: Implement monthly cash flow forecasts and financial reviews to catch early signs of distress and act proactively.
• Seek Professional Advice: Engage with financial advisors or insolvency practitioners if liabilities become unsustainable to explore turnaround options.

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