WEBB RETAIL SOLUTIONS LTD

Executive Summary

WEBB RETAIL SOLUTIONS LTD is a nascent micro-entity with modest net assets but negative working capital, indicating short-term liquidity challenges typical of start-ups. While solvent overall, the company should focus on improving cash flow management and building financial buffers to ensure sustainable growth and operational stability.

WEBB RETAIL SOLUTIONS LTD - Analysis Report

Company Number: 14973840

Analysis Date: 2025-07-29 15:33 UTC

Financial Health Assessment Report for WEBB RETAIL SOLUTIONS LTD

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1. Financial Health Score: C

Explanation:
WEBB RETAIL SOLUTIONS LTD currently shows a modest financial position with positive net assets but negative net current assets (working capital). The micro-entity's financials are very early stage, with minimal fixed assets and current assets, and a small level of short-term liabilities exceeding current assets. This reflects a company in its infancy, with some initial financial strain but no immediate red flags of distress. The overall grade "C" indicates cautious stability with room for improvement to reach a healthier financial state.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,178	Small base of long-term resources; typical for a new micro company
Current Assets	367	Very limited liquid or near-liquid assets
Current Liabilities	450	Short-term debts slightly exceed current assets
Net Current Assets (Working Capital)	-83	Negative; indicates potential short-term liquidity pressure ("symptom of cash flow tightness")
Total Assets less Current Liabilities	1,095	Small positive buffer after short-term obligations
Net Assets (Shareholders' Funds)	1,095	Equity capital at modest level; positive but low
Average Number of Employees	0	No employees beyond directors; minimal operational scale

Interpretation:

• The negative working capital is a "symptom of distress" at the operational liquidity level, signaling the company may face difficulties meeting short-term obligations purely from current assets.
• Positive net assets suggest the company is solvent overall as total assets exceed liabilities.
• Minimal fixed assets and absence of employees are typical for a start-up or very early-stage business.
• Directors have provided unsecured, interest-free loans, indicating reliance on internal funding sources rather than external financing.

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3. Diagnosis

WEBB RETAIL SOLUTIONS LTD is in the very early stages of its business lifecycle, having been incorporated in July 2023 and filing its first set of micro-entity accounts for the year ended July 2024. The company shows a "healthy" level of shareholders' equity relative to its size but is exhibiting "symptoms" of liquidity strain due to negative net current assets. This suggests that while the company is not insolvent, its ability to cover short-term obligations from current assets alone is compromised.

The absence of employees and limited asset base indicate a lean operation, likely focused on consultancy activities per its SIC code 70229 (Management consultancy activities other than financial management). The directors appear to be funding the business internally, which is common in start-ups but may limit growth capacity.

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4. Recommendations

To improve the financial wellness of WEBB RETAIL SOLUTIONS LTD, the following actions are advised:

• Improve Working Capital:
  Focus on increasing current assets such as cash or receivables or reducing current liabilities to alleviate short-term liquidity pressure. This could involve negotiating longer payment terms with suppliers or accelerating customer payments.

• Build Cash Reserves:
  Establish a "healthy cash flow" cushion to avoid liquidity crunches. Directors may consider injecting more equity or arranging short-term credit facilities.

• Monitor Overheads and Expenses:
  Keep operational costs low until revenue streams stabilize to preserve cash.

• Develop Revenue Streams:
  As a management consultancy, securing steady contracts will improve cash inflow and working capital.

• Plan for Growth:
  Once stable, consider hiring staff or investing in assets to expand capacity and service offerings.

• Maintain Compliance:
  Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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