Company Number: 14188297

Analysis Date: 2025-07-20 17:26 UTC

Financial Health Assessment: WARD-DRUMMOND GROUP LTD (Year ended 31 March 2024)

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress with negative net assets and a working capital deficit. While the company is very young (incorporated in 2022), its current financial position indicates significant liquidity challenges and potential solvency concerns. This score reflects a need for urgent financial attention to restore stability.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	10,722	Some investment in long-term assets, which is positive for operational capability.
Current Assets	617	Very low short-term assets, insufficient to cover current liabilities.
Current Liabilities	14,400	High short-term obligations creating liquidity pressure.
Net Current Assets	-13,783	Negative working capital indicates inability to meet short-term debts from liquid assets.
Total Assets Less Current Liabilities	-3,061	Overall asset base after short-term debts is negative, signaling financial imbalance.
Net Assets (Shareholders' Funds)	-3,349	Negative equity means liabilities exceed assets; potential insolvency risk.
Average Employees	0	No staff currently employed, which may limit operational capacity or reflect early-stage status.

Additional Notes:

• The company qualifies as a Micro entity, following simplified accounting rules.
• No audit required, so financials are unaudited, but still a valid representation.
• The director is also a significant controller, owning 25-50% shares and voting rights.

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3. Diagnosis

Symptoms of Financial Distress:

• Negative Equity ("under the skin"): The company’s net assets are £3,349 in deficit, indicating liabilities exceed assets. This is akin to a patient with a depleted reserve of essential nutrients.
• Severe Liquidity Crunch ("laboured breathing"): Current liabilities (£14,400) far outweigh current assets (£617), resulting in a negative working capital of £13,783. This suggests the company may struggle to meet immediate financial obligations.
• Limited Operational Scale ("no pulse in workforce"): No employees indicate a minimal operational footprint, which could be due to early development stage or contraction.
• Recent Asset Acquisition ("new medication"): Fixed assets have increased from zero to £10,722, possibly an investment to support future operations, but currently it is illiquid.

Underlying Causes:

• The company is still in its infancy (just over 2 years old), which often comes with startup costs and initial losses.
• Cash or liquid assets are insufficient to cover short-term debts.
• Negative reserves and shareholders’ funds imply that the company might have accumulated losses or increased liabilities without matching asset growth.

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4. Prognosis

If current conditions persist without intervention, the company risks worsening liquidity and solvency, potentially leading to insolvency proceedings. However, as a micro entity with a single director and shareholder, there is flexibility to restructure finances or inject new capital.

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5. Recommendations

1. Urgent Cashflow Management:

   • Prioritize improving liquidity by accelerating receivables collection or deferring payables where possible.
   • Explore short-term financing options (e.g., director loans, overdraft) to ease immediate cash pressure.

2. Capital Injection:

   • Consider additional shareholder investment to restore positive net assets and strengthen equity.

3. Cost Control:

   • Maintain a lean operation until financial health improves.
   • Avoid incurring new liabilities that cannot be serviced promptly.

4. Financial Planning & Forecasting:

   • Develop detailed cash flow forecasts to anticipate funding gaps.
   • Review business model viability to ensure sustainable revenue generation.

5. Professional Advice:

   • Engage with financial advisors or insolvency practitioners early if cashflow challenges worsen.
   • Regularly monitor financial statements for early detection of distress symptoms.

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