WORKBEE LIMITED

Executive Summary

WORKBEE LIMITED exhibits clear signs of financial strain with negative working capital and net assets indicating liquidity and solvency challenges. Immediate focus on cash flow management, cost reduction, and potential capital infusion is critical to restore financial health and ensure business sustainability.

WORKBEE LIMITED - Analysis Report

Company Number: 13120552

Analysis Date: 2025-07-19 13:04 UTC

Financial Health Assessment: WORKBEE LIMITED (as at 31 January 2025)

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1. Financial Health Score: D

Explanation:
The company is currently showing signs of financial distress, reflected by negative net assets and working capital deficits. The recent deterioration in liquidity and solvency metrics suggests the business is struggling to maintain a healthy financial state. While not immediately critical, these symptoms require urgent attention to avoid worsening financial condition.

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2. Key Vital Signs:

Metric	2025 Value (£)	2024 Value (£)	Interpretation
Current Assets	2,702	341	Increase in liquid resources is positive.
Current Liabilities	7,306	6,857	Current debts have increased slightly.
Net Current Assets (Working Capital)	-4,604	1,484	Shift from positive to negative working capital indicates liquidity strain.
Net Assets (Equity)	-5,644	261	Negative equity signals insolvency symptoms.
Share Capital	1	1	Minimal capital base; typical for micro entity.
Average Number of Employees	1	1	Very small operation, limited human resources.

• Working Capital: The drop from +£1,484 (2024) to -£4,604 (2025) is a key "symptom" indicating the company does not currently have enough short-term assets to cover its short-term liabilities. This is akin to a patient whose vital fluids have dropped dangerously low.

• Net Assets (Equity): Moving from a small positive equity to a substantial negative figure (-£5,644) is a critical sign of financial stress, suggesting accumulated losses or liabilities outweigh assets. This parallels a weakening immune system in a patient, reducing overall resilience.

• Liquidity: While current assets rose, liabilities grew even more, leading to this liquidity imbalance—a worrying sign for day-to-day operations.

• Prepayments and Accruals: The prior year included a significant prepayment/asset (£8,000) not present this year, which may explain some asset fluctuations but does not offset the concerning negative working capital.

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3. Diagnosis:

WORKBEE LIMITED is showing symptoms of financial distress primarily driven by increased liabilities and negative net assets. The business has shifted from a stable but small equity position to a deficit, indicating that debts and obligations now exceed the assets held. The negative working capital suggests the company may struggle to meet short-term obligations, a critical "vital sign" that requires immediate management focus.

Given this is a micro entity with only one employee (likely the director), resources are limited and the capacity to absorb shocks is minimal. The company may be experiencing cash flow issues, potentially from operational losses or delayed revenue recognition, particularly common in software development start-ups.

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4. Recommendations:

• Urgent Cash Flow Management:
  Conduct a detailed cash flow forecast to understand short-term liquidity needs. Explore options for short-term financing or delaying non-essential payments to ease immediate cash pressure.

• Cost Control:
  Review all operating expenses to identify and eliminate non-critical costs. With a one-person operation, this may involve renegotiating supplier terms or deferring discretionary spending.

• Revenue Enhancement:
  Investigate ways to accelerate sales or client payments. As a software development company, consider offering services or products with upfront payment terms to improve cash inflow.

• Capital Injection:
  Consider raising additional equity or shareholder loans to restore a positive net asset position and strengthen the balance sheet. This "boost" is akin to administering a stabilizing treatment for the company’s financial health.

• Stakeholder Communication:
  Maintain transparent communication with creditors and suppliers to negotiate payment terms and avoid forced collections that could worsen liquidity.

• Regular Monitoring:
  Implement monthly financial reviews focusing on liquidity ratios and net asset trends to catch early warning signs and adjust course swiftly.

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