Company Number: 14031904

Analysis Date: 2025-07-20 17:00 UTC

Financial Health Assessment: WARYAM ENTERPRISES LIMITED

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1. Financial Health Score: D

Explanation:
The company shows signs of financial strain with negative net current assets and net assets (shareholders' funds) recorded as negative figures. This indicates that current liabilities exceed current assets by a significant margin, a symptom often described as "working capital deficiency" which can constrain operational capacity and liquidity. While the business remains active and compliant with filing requirements, the negative equity position and shrinking fixed and current assets highlight financial distress.

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2. Key Vital Signs

Metric	2024	2023	Interpretation
Fixed Assets (£)	480	640	Slight decrease in long-term assets; possibly asset disposals or depreciation.
Current Assets (£)	548	1,721	Sharp reduction in cash/debtors/stock; weakens liquidity.
Current Liabilities (£)	2,313	3,388	Decrease in short-term debts, but still high relative to assets.
Net Current Assets (£)	-1,765	-1,667	Negative working capital; liabilities exceed assets — a warning sign.
Total Net Assets (£)	-1,285	-1,027	Negative equity indicates the company owes more than it owns.
Employees	1	1	Very small workforce consistent with micro-entity status.

Interpretation:

• Negative Net Current Assets: The company has insufficient current assets to cover its short-term liabilities. This is a critical "symptom of distress" indicating potential cash flow problems.
• Declining Fixed and Current Assets: Suggests possible asset sales or depletion of cash reserves, which weakens the company's financial "immunity."
• Negative Net Assets / Shareholders' Funds: Reflects accumulated losses or insufficient capital injection, placing the business in a precarious "health" state.

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3. Diagnosis

WARYAM ENTERPRISES LIMITED exhibits classic symptoms of financial distress:

• Liquidity strain: Negative net current assets means the company may struggle to meet its short-term obligations, leading to potential payment delays or supplier issues.
• Negative equity: The shareholders’ funds are negative, a sign that liabilities outweigh the total assets, meaning the business is technically insolvent on a balance sheet basis.
• Shrinking asset base: Both fixed and current assets have decreased, indicating the company might be using up resources to sustain operations without sufficient inflows.

However, the company remains active, has timely filed accounts, and maintains a very lean operation with one employee, which may help limit overheads.

Overall, the company is in a fragile financial condition, akin to a patient with critical but manageable symptoms if prompt treatment is applied.

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4. Recommendations

To improve financial wellness, the company should consider the following "treatment" plan:

• Improve liquidity: Seek ways to increase cash inflows, such as accelerating receivables collection, negotiating better payment terms with suppliers, or injecting additional capital.
• Reassess cost structure: Minimise expenses and overheads to preserve cash and reduce pressure on working capital.
• Capital injection: The director or external investors could inject equity to restore positive net assets, improving solvency and investor confidence.
• Monitor and manage liabilities: Restructure or extend terms on current liabilities where possible to reduce immediate cash outflows.
• Business model review: Evaluate the sustainability of the current trading activities under SIC 47990 (other retail sale not in stores) to identify growth opportunities or cost efficiencies.
• Regular financial monitoring: Implement tighter financial controls and monthly cash flow forecasting to detect early signs of distress and act proactively.

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