ASHBERG LIMITED

Financial Health Assessment: ASHBERG LIMITED

1. Financial Health Score: C-

Explanation: The patient is currently stable and showing a very slight improvement in vital signs, but is suffering from a severe chronic condition. The business has a strong immune system against short-term debt (low liabilities), but its revenue-generating capacity is anemic. Most critically, the patient has historically suffered massive hemorrhaging of shareholder capital, leaving it severely underweight relative to its original structural frame. While it is currently breathing on its own (solvent), its long-term viability requires a significant turnaround in metabolic (revenue) function.

2. Key Vital Signs

• Pulse (Turnover): £117,423 – The patient's pulse is weak and irregular. Revenue dropped from a high of £194,034 in 2023 back down to 2022 levels. For a medium-sized business operating in financial management, this heartbeat is dangerously slow.
• Blood Pressure (Liabilities): £50,641 – Healthy and low. The business is not over-leveraged and does not face immediate risk of cardiac arrest from creditor demands. Current liabilities are well-covered by current assets.
• Blood Flow (Cash): £19,878 – Slowly improving. Cash has steadily climbed from £9,987 in 2022 to nearly £20k in 2025. The blood is flowing, but the volume is far too low for comfort.
• Muscle Mass (Net Assets): £188,930 – Slight growth from £180,252 in 2024, indicating a small profit was retained. However, this muscle mass is drastically undersized for the patient's frame.
• Body Frame (Share Capital): £1,501,237 – The structural size of the business, represented by share capital, remains large, but it is propping up a much smaller actual body.

3. Diagnosis: Chronic Capital Atrophy with Stabilizing Metabolism

The financial data reveals a business that has survived a severe "wasting disease." While the balance sheet shows Net Assets of £188,930 and Shareholders' Funds of £1,501,237, these two figures together paint a grim historical picture. The discrepancy indicates accumulated losses (a deficit in the Profit & Loss reserve) of approximately £1.31 million. The business has essentially burned through 87% of the capital originally invested by shareholders. This is massive scar tissue on the balance sheet.

However, there are signs of stabilization. The slight increase in net assets year-over-year (£180,252 to £188,930) suggests the patient achieved a modest profit of roughly £8,678 in the latest period. The business is no longer hemorrhaging capital, and with liabilities dropping significantly from £142,727 in 2024 to £50,641 in 2025, the company has successfully cleansed its system of short-term debt. The patient is out of the emergency room, but remains in the ward, heavily reliant on the life support of past capital injections and generating very little energy (revenue) relative to its overheads.

4. Recommendations: Prescriptions for Financial Wellness

• Intensive Revenue Therapy: The turnover of ~£117k is critically low for a firm with FCA permissions dealing in corporate finance. The directors must diagnose why revenue fell from the 2023 peak and implement aggressive, targeted business development to increase deal flow. The stated focus on "renewable energy, food security and impact investing" must translate into higher-fee engagements.
• Rebuild Muscle Mass (Retained Earnings): The £1.3m accumulated loss will take years to cure, but the patient must consistently retain profits rather than distribute them. Every drop of profit must be reinvested to rebuild the equity base.
• Maintain Low "Blood Pressure": The reduction in current liabilities is an excellent sign. Continue to avoid high-interest debt and manage payables carefully to prevent a relapse into financial distress.
• Cash Flow Infusions: While cash is ticking up, £19,878 provides a very thin margin for error. Aim to build a cash reserve of at least 3-6 months of operating expenses to protect the business against unexpected shocks or delayed deal completions.