NORLUND LIMITED

Financial Health Assessment: NORLUND LIMITED

1. Financial Health Score: C- Explanation: The company is currently solvent and has positive working capital, but it is exhibiting symptoms of financial malnutrition. Following a massive extraction of capital in 2022/2023, the business is operating on a skeletal balance sheet with critically low cash reserves. It is stable, but highly vulnerable to unexpected financial shocks.

2. Key Vital Signs * Cash Reserves (Blood Flow): £5,217. This is critically low. The company has minimal liquid funds available to cover emergencies or short-term obligations, down dramatically from over £1 million just a few years prior. * Working Capital (Immune System): £27,367 (Current Assets £43,397 minus Current Liabilities £16,030). While positive, this figure is heavily reliant on debtors (£38,180) rather than cash, indicating a potential blockage in the company's cash flow arteries. * Net Assets (Core Strength): £62,122. The company remains solvent, meaning its assets comfortably cover its liabilities. However, this represents a slight decline from the previous year (£63,122), suggesting the business is either running at a slight loss or paying out small dividends. * Intangible Assets (Organ Health): £34,755. These represent capitalized research and development expenditure. As an R&D company, this is a primary asset, but it is illiquid and needs to eventually generate commercial returns to justify its presence on the balance sheet.

3. Diagnosis The patient experienced a significant "hemorrhage" of cash and total assets between 2022 and 2023, with cash dropping from £1.03 million to just under £12,000. This suggests a major financial event, such as a large dividend payout to its parent companies (Bohr Group Limited and Bohr Limited) or an internal group restructuring.

Currently, the business is operating on a "life support" scale with only one employee. While liabilities are low and manageable (only £16,030 due within a year, including £8,217 owed to group undertakings), the lack of cash is a clear symptom of distress. The slight decrease in Profit and Loss reserves from £63,022 to £62,022 indicates the business is not currently generating a profit, or is bleeding small amounts of capital each year. The reliance on £38,180 in outstanding debtors is the only thing preventing an immediate cash flow crisis.

4. Recommendations * Cash Transusion (Debtor Collection): The company must prioritize collecting the £38,180 owed by debtors. Converting these receivables into cash is the immediate priority to restore healthy cash flow. * Monitor Intangible Assets (Checkup): Regular reviews of the £34,755 in capitalized R&D are necessary. If the research is not leading to viable commercial products, these assets should be impaired (written down) to reflect reality, rather than artificially inflating the balance sheet. * Group Support (Life Support): Given that the company is controlled by larger group entities (Bohr Group Limited and Bohr Limited) and already owes them money, it may need to rely on group funding facilities to cover any short-term cash shortfalls while it returns to profitability.