Company Number: 12933720

Analysis Date: 2025-07-20 14:27 UTC

Financial Health Assessment for BORARI LTD (as of 31 October 2024)

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1. Financial Health Score: D

Explanation:
BORARI LTD exhibits very limited financial strength with minimal net assets and working capital. The company is technically solvent but shows symptoms of financial fragility, with very low cash reserves and net assets that barely exceed liabilities. These signs suggest vulnerability to unexpected expenses or downturns, indicating a financial condition that requires careful management and improvement to achieve stability.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£568	Very low current assets, primarily cash; no significant receivables, indicating limited sales or collections.
Cash	£568	Small cash balance—healthy cash flow is not evident; tight liquidity situation.
Debtors	£4	Negligible trade receivables, suggesting low sales or rapid collection of debts.
Current Liabilities	£538	Current liabilities nearly equal current assets, indicating working capital is barely positive (£30).
Net Current Assets (Working Capital)	£30	Positive but minimal working capital—a fragile buffer against short-term obligations.
Net Assets (Equity)	£30	Very small equity base; company has minimal retained earnings or capital.
Share Capital	£1	Nominal share capital, typical for a small private company.
Employee Count	3 (average)	Small workforce consistent with small company scale.

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3. Diagnosis: Financial Health Overview

BORARI LTD shows signs of a "patient" with a weak financial constitution but no acute distress. The company maintains minimal positive net current assets and net equity, which means it is solvent but only marginally so. The cash position is weak, and the absence of significant debtors or fixed assets suggests limited operational scale or very short operating cycles.

The company appears to be in an early or constrained growth phase, with low turnover implied by minimal receivables and cash on hand. The balance sheet indicates "symptoms" of limited financial resilience—any unexpected cash flow disruption could quickly tip the company into distress.

The gradual increase in net assets from £6 in 2020 to £30 in 2024 shows some improvement, but the absolute figures remain very low. The small size and minimal capital base limit the ability to absorb shocks or invest in growth.

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4. Recommendations: Improving Financial Wellness

• Boost Cash Reserves: Prioritize improving cash flow through better receivables management, accelerating collections, or increasing sales to build a healthier cash buffer.
• Increase Revenue Streams: Explore new business opportunities or service offerings to grow turnover and generate higher working capital.
• Tighten Cost Controls: Review and reduce operating expenses to improve profitability and conserve cash.
• Consider Capital Injection: Evaluate the possibility of raising additional equity or short-term financing to strengthen the capital base and provide operational flexibility.
• Regular Financial Monitoring: Implement monthly cash flow forecasts and working capital analysis to detect early warning signs and respond promptly.
• Engage with Financial Advisors: Seek professional guidance on tax planning, grants, or funding options available for small businesses in the UK.
• Prepare for Growth Planning: Once a stable cash position is achieved, plan for strategic investments in marketing, technology, or staff training to support sustainable growth.

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