The real story: margin, not scale
Revenue is climbing fast, but profit isn't following — overheads are eating the growth. A "scale up" program doesn't fix this; it adds to it.
| Year |
Sales |
Net profit |
Margin |
Overheads |
| FY2024 | £59,137 | −£20,942 | — | £56,270 |
| FY2025 | £226,698 | £81,026 | 35.7% | £42,095 |
| FY2026 | £379,071 | £79,362 | 20.9% | £100,586 |
+67% sales, but net profit flat and margin nearly halved. Overheads up 139% in one year. Adding £21k/yr of fixed cost pushes the wrong number.
Can the cash carry it?
The bank balance is flattered by a £25k loan drawn on 2 Jun 2026 — strip it out and own working capital is thin.
Cash in bank (Lloyds)£38,132
Less: £25k facility drawn 2 Jun (borrowed, not trading cash)−£25,000
Own working capital~£13,000
Working-capital borrowings (£20k director + £25k facility)£45,000
New fixed monthly outflow (Valente)+£1,797
The £25k is currently booked as income, so it isn't yet recorded as a liability or repayment. Cash-negative in ~half of recent months (Nov 25 −£24.7k, Jan 26 −£5.1k, Mar 26 −£4.3k). He's already borrowing to fund cashflow — a 3-year fixed commitment on top compounds the risk.