1609 CONCEPTS LTD

Executive Summary

1609 CONCEPTS LTD exhibits significant financial distress marked by negative net assets and a severe imbalance between current liabilities and assets, indicating potential insolvency risks. Immediate action is required to improve cash flow, restructure debts, and strengthen capital to restore financial health and operational viability.

1609 CONCEPTS LTD - Analysis Report

Company Number: 12778417

Analysis Date: 2025-07-29 12:08 UTC

Financial Health Assessment Report for 1609 CONCEPTS LTD

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1. Financial Health Score: Grade D

Explanation:
The company is showing significant signs of financial distress. Key metrics reveal persistent negative net assets (shareholders’ funds) over the past two years, largely due to creditors exceeding assets by a wide margin. This indicates liabilities surpassing assets, which is a critical symptom of balance sheet insolvency. While the company remains active and compliant with filings, the financial structure currently suggests caution.

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2. Key Vital Signs

Metric	2023	2022	Interpretation
Fixed Assets	£0	£0	No long-term assets; no investment in tangible assets—potential lack of capital base.
Current Assets	£100	£100	Extremely low short-term assets; very limited liquidity.
Current Liabilities	£10,050	£5,858	High short-term debt obligations; increased sharply in 2023.
Net Current Assets	-£9,950	-£5,758	Negative working capital; the company may struggle to meet short-term debts—dangerous "cash flow" symptom.
Net Assets (Shareholders Funds)	-£9,950	-£5,758	Negative equity indicates company owes more than it owns; financial “organ failure.”
Share Capital	£10	£10	Minimal paid-up capital; insufficient buffer for losses.
Employees	0	0	No employees; possibly minimal operational scale or outsourcing.

• Liquidity Status: The company holds nominal current assets (£100) against current liabilities over £10,000, a stark imbalance indicating an inability to cover short-term debts with available assets.
• Solvency Status: Negative net assets reveal that total liabilities exceed total assets, a classic sign of insolvency risk.
• Operational Scale: No fixed assets and zero employees suggest a very small or possibly dormant operational footprint.

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3. Diagnosis

The financial "vital signs" point to severe financial distress. The company’s balance sheet shows negative net assets, meaning the liabilities, especially current liabilities, far exceed assets. This indicates a critical "symptom" of financial imbalance and potential insolvency risk if conditions persist. The lack of fixed assets and employees hints at very limited operational activity or possibly a company existing primarily on credit or loan facilities.

The rapid increase in current liabilities from 2022 to 2023 is particularly concerning, suggesting reliance on short-term debt or unpaid obligations growing without matching asset growth. The very low current assets fail to provide a healthy cash flow position to handle these obligations.

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4. Recommendations

1. Immediate Cash Flow Management:
   Address the "symptom" of negative working capital by negotiating with creditors to restructure or extend payment terms to reduce immediate pressure.

2. Capital Injection:
   Consider injecting additional equity or securing longer-term financing to improve solvency and provide a buffer against liabilities. The current share capital is negligible relative to debts.

3. Operational Review:
   Evaluate business activities to understand why liabilities have surged and assets remain minimal. Explore ways to increase asset base or generate operational cash flow.

4. Cost Control:
   With no employees recorded, review any outsourced costs or overheads to minimize unnecessary expenditure.

5. Professional Financial Advice:
   Seek expert support to develop a turnaround plan, including possible refinancing, asset sales, or restructuring options.

6. Monitor Compliance:
   Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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