Your Profit & Valuation Audit

Financial Intelligence

February 2026

Prepared by Keith Griggs FCA — AI Financial Architect | Redbox Financial

Data Integrity Verified

Before drawing any conclusions, we validated the foundations. The books have been fully reconciled — every figure in this report is reliable and ready to support strategic decisions.

Reconciled Accounts

Revenue, margin, and overhead data cross-checked and confirmed accurate across all reporting periods.

Consistent Classification

Cost categories and income lines are consistently applied, enabling year-on-year comparison with confidence.

Ready for Strategy

This report is built on verified data — suitable for boardroom decisions, investor conversations, and valuation discussions.

Profit Up £398,623 This Year

EBITDA has grown sharply — from £88,721 to £487,344 — a transformational improvement driven not by revenue growth, but by margin strength and rigorous cost control.

What Drove the Improvement

  • Revenue: Down £1,018,872 (–6.3%)
  • Gross Margin: Up 2.4 percentage points
  • Overheads: Down £185,707

Margin improvement alone added £366,195 to the bottom line.

The Warning Signal

Whilst the headline numbers are encouraging, the underlying engine carries a structural risk. Falling average invoice value has removed £2.4m of revenue and eroded £367,028 of profit potential.

Profit improved — but the engine is fragile. Volume is holding; value per transaction is not. This is a vulnerability that must be addressed before it compounds.

The Valuation Gap: £6,278,136 Left on the Table

The business is generating value — but far less than it is capable of. At current performance, your company is worth £2,131,082 today. With targeted improvements, that figure rises to £8,409,218 by Year 5.

£2.1M

Current Valuation

Today's business value based on current EBITDA and performance trajectory.

£8.4M

Year 5 Potential

Projected valuation when profit levers are activated and working capital is optimised.

£6.3M

The Gap

Wealth the business is not currently producing — constrained by margin volatility, working capital drag, and customer churn.

This gap is not theoretical. It is the direct consequence of three addressable constraints: margin volatility, working capital drag, and customer retention. Each is measurable. Each is fixable.

Where the Money Is Hiding

The 5-year EBITDA upside available totals £2,231,065. Three levers drive this — and the primary opportunity lies in revenue quality and pricing discipline, not cost-cutting alone.

Revenue Recovery — £1,914,191

The dominant lever. Average invoice value has fallen 14.9% year on year. Volume is rising — but value per deal is falling. That is profit leakage at scale. Customer and pricing recovery is the single highest-impact action available.

Margin Expansion — £651,231

Gross margin improvement from 17.6% to 20.1% represents a realistic and high-value target. This year's 2.4-point gain proves the capability exists — now it must be sustained and extended.

Overhead Pressure — (£347,926)

Cost inflation is a headwind. Overheads are expected to rise under current conditions, partially offsetting gains elsewhere. Proactive cost governance is essential to protect the net improvement.

The Cash Trap: Cash Is Stuck

Despite profit improvement,your company is sitting in a £403,341 overdraft position. The working capital cycle has deteriorated — cash is being consumed by three compounding pressures operating simultaneously.

Working Capital Movements

(£108,773)

Slower debtor collections

(£81,048)

Faster supplier payments

(£72,000)

Working capital cycle deterioration

Current Metrics

  • Cash Position: (£403,341) — improved by £243,100 YoY but still negative
  • Debtor Days: 2.4 days — worsened by +2.6 days
  • Creditor Days: 5.7 days — shortened by 2.0 days
  • Working Capital Cycle: 53.1 days — lengthened by +1.2 days

You are paying suppliers faster whilst collecting from customers slower. With invoice values shrinking and stock remaining high, the cash squeeze is structural. Growth without working capital control destroys valuation.

What Happens Next

The analysis is clear. The opportunity is defined. These four actions, executed with discipline, will close the valuation gap and transform you into a high-value, acquirable business.

01

Activate the Revenue Recovery Lever

The £1,914,191 revenue opportunity is the single highest-impact action. Pricing discipline and customer retention must be addressed immediately. Falling invoice value is the primary threat to long-term profitability.

02

Protect and Extend Margin Gains

This year's 2.4-point margin improvement added £366k to profit. That discipline must be embedded into every deal. The path to £8.4m in business value runs directly through sustained margin performance.

03

Release the Cash Trapped in Working Capital

Recovering debtor terms, extending creditor days, and reducing the working capital cycle will release hundreds of thousands in liquidity. Improved cash flow directly drives a multi-million valuation uplift.

04

Track Progress Monthly — Drift Kills Value

Without monthly monitoring, gains erode silently. A structured review cadence ensures that every improvement is measured, every deviation is caught early, and momentum is maintained towards the Year 5 target.