W GAUNTLETT LIMITED

Executive Summary

W GAUNTLETT LIMITED is financially stable but weakening, with declining net assets and liquidity that suggest emerging cash flow pressures. The company should prioritize cash management, cost control, and enhanced financial reporting to improve resilience and ensure long-term financial health.

W GAUNTLETT LIMITED - Analysis Report

Company Number: 13261067

Analysis Date: 2025-07-20 12:49 UTC

Financial Health Assessment of W GAUNTLETT LIMITED

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1. Financial Health Score: C

Explanation:
The company shows some positive signs such as positive net current assets and shareholders’ funds, indicating a generally solvent position. However, a noticeable decline in net assets and shareholders’ funds from £9,344 in 2023 to £4,515 in 2024 signals emerging financial strain. The limited cash buffer and fluctuations in working capital indicate symptoms of financial stress, reducing the overall health score to a moderate level.

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2. Key Vital Signs

Metric	2024 Value	2023 Value	Interpretation
Current Assets	£13,763	£16,204	Decreased, reducing liquidity buffer; less cash available for immediate needs.
Current Liabilities	£9,248	£6,860	Increased, indicating higher short-term obligations.
Net Current Assets	£4,515	£9,344	Declined sharply, showing a weakening working capital position.
Shareholders’ Funds	£4,515	£9,344	Halved, indicating erosion of equity; possible losses or withdrawals.
Cash	Not disclosed in 2024 accounts; £16,153 in 2023	Significant prior cash reserves, no update for 2024	Cash position uncertain for 2024; prior year healthy cash flow.
Employees	1	1	Stable, indicating consistent operating scale.

Interpretation:

• The company remains solvent with positive working capital ("healthy cash flow" cushion), but the reduction in liquidity and net assets signals early symptoms of financial distress.
• Increased current liabilities relative to assets may pressure short-term obligations.
• The absence of a profit and loss account limits visibility on profitability and operational efficiency.

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3. Diagnosis

The financial "vital signs" show that W GAUNTLETT LIMITED is currently in a stable but weakening condition. The company has maintained positive net assets and working capital, which is analogous to a patient who is stable but showing signs of fatigue. The halving of shareholders’ funds over one year is akin to a patient losing strength, possibly due to operational losses or increased liabilities.

The company is small (micro entity) with minimal employees and assets, focusing on specialist medical practice activities. The lack of an audit and limited financial disclosures restrict a full understanding of income and cash flow trends, which are critical for diagnosing underlying health.

The symptoms suggest:

• Potential cash flow tightening.
• Increased short-term debt obligations.
• Equity erosion that could impact resilience to shocks.

The company is not in immediate danger but requires close monitoring and intervention to prevent deterioration.

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4. Recommendations

To improve financial wellness and prevent further decline, the company should consider:

1. Enhance Cash Flow Management:

   • Monitor cash inflows/outflows rigorously.
   • Negotiate longer payment terms with creditors or accelerate receivables.
   • Maintain a cash reserve to buffer against fluctuations.

2. Cost Control and Profitability Analysis:

   • Conduct a detailed profit and loss review (not currently provided) to identify loss-making areas.
   • Reduce discretionary expenses without compromising service quality.

3. Strengthen Working Capital:

   • Aim to reduce current liabilities or convert short-term obligations into longer-term debt where possible.
   • Evaluate debtor collection efficiency.

4. Increase Transparency and Reporting:

   • Consider voluntarily preparing management accounts or audited financial statements to improve financial oversight.
   • This will enable better diagnostic insights and reassure stakeholders.

5. Strategic Planning:

   • Review business strategy in light of financial trends to ensure sustainable growth.
   • Explore additional revenue streams or partnerships to stabilize income.

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Executive Summary

W GAUNTLETT LIMITED maintains a solvent position with positive net assets and working capital but shows signs of financial strain due to reduced liquidity and halved shareholders’ funds in the latest year. The company’s financial health is currently moderate (grade C) and requires focused cash flow management, cost control, and improved financial transparency to prevent further deterioration and build resilience.