UNIX PRECISE EQUIPMENT LTD

Executive Summary

Unix Precise Equipment Ltd shows early signs of financial distress with negative net assets and high current liabilities, indicating liquidity and solvency challenges. Immediate capital injection, cost management, and enhanced cash flow monitoring are critical to stabilize the company’s financial health and support sustainable growth in its nascent stage.

UNIX PRECISE EQUIPMENT LTD - Analysis Report

Company Number: 14683592

Analysis Date: 2025-07-29 14:56 UTC

Financial Health Assessment for UNIX PRECISE EQUIPMENT LTD

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1. Financial Health Score: D

Explanation:
The company shows significant signs of financial distress. With net liabilities of £17,900 against very minimal current assets (£350) and substantial current liabilities (£18,250), the financial "vital signs" indicate an unhealthy balance sheet. The company is newly incorporated (2023) and has minimal trading history, but the negative net assets are a critical red flag. The score reflects poor liquidity and solvency at this early stage.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	350	Very low cash or short-term assets; "weak pulse" in liquidity.
Current Liabilities	18,250	High short-term obligations; "heavy burden" on immediate cash flow.
Net Current Assets	350 - 18,250 = -17,900	Negative working capital; indicates inability to cover short-term debts with current assets.
Net Assets (Shareholders’ Funds)	-17,900	Negative equity; company owes more than it owns — a symptom of financial distress.
Employees	1	Very small workforce consistent with micro-entity status.
Company Status	Active	Company is operational but early in lifecycle.
Industry SIC Code	47990	Retail trade not in stores - likely online or remote sales; potentially low margin, competitive.

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3. Diagnosis

The company’s financial "vital signs" reveal symptoms of serious distress: very limited current assets (£350) against significant current liabilities (£18,250), resulting in negative net current assets and negative shareholders’ funds. This is akin to a patient with dangerously low blood pressure and weakened heart function — the business may struggle to meet its short-term obligations and sustain operations without external support.

Given this is the company's first full financial year since incorporation, the negative net assets likely reflect startup costs funded by loans or director advances rather than operational losses, but it still indicates an urgent need for capital infusion or improved cash generation.

The lack of an audit and reliance on micro-entity reporting standards limits detailed insight, but the absence of profit and loss data is a gap in monitoring operational performance. The single director holds full control and is likely the key decision-maker for remedies.

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4. Recommendations

• Capital Injection: The company needs an immediate infusion of cash or equity to restore positive net assets and strengthen liquidity — akin to a patient receiving emergency fluids to stabilize blood pressure.
• Cost Control: Review and reduce current liabilities where possible. Negotiate extended payment terms with creditors to ease cash flow pressures.
• Cash Flow Monitoring: Implement strict cash flow forecasting to anticipate and avoid liquidity crises — establishing a healthy "heartbeat" for daily operations.
• Revenue Growth Plan: Develop clear sales strategies to increase current assets through improved turnover, especially important in a competitive retail sector.
• Financial Reporting: Even as a micro-entity, consider preparing internal profit and loss statements to diagnose operational health and adjust strategies accordingly.
• Director Support: As the sole director and significant controller, Mr. Nami Gholamifard should seek professional advice on restructuring and growth strategies to stabilize the business.

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