Company Number: 13029765

Analysis Date: 2025-07-20 13:22 UTC

Financial Health Assessment for 80 VOICES LIMITED

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1. Financial Health Score: C

Explanation:
The company shows signs of survival but also symptoms of financial strain. With a modest equity base and persistent net current liabilities, the business is in a vulnerable position. It is not critically ill but requires attention to improve liquidity and strengthen working capital to avoid future distress.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	7,729	Small asset base, typical for a micro company—limited long-term investments or property.
Current Assets	11,711	Cash, debtors, and short-term resources; increased significantly from prior year (4,473).
Current Liabilities	18,409	Short-term debts due within a year; increased since prior year (13,258), signalling cash strain.
Net Current Assets (Working Capital)	-6,630	Negative working capital; liabilities exceed current assets by £6,630, indicating liquidity pressure.
Total Assets Less Current Liabilities	1,099	Positive but minimal net asset value after short-term obligations; narrow safety margin.
Shareholders Funds (Equity)	111	Very low equity base, showing limited retained earnings and capital buffer.
Employee Count	1	Very small workforce, typical for micro enterprise; low fixed labor costs but limited capacity.
Director’s Loan Account	£10,133 owed to director	Director has provided funds to the company, indicating reliance on insider financing.

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3. Diagnosis

The company presents a fragile financial condition marked by persistent negative working capital, small equity, and reliance on director financing. The negative net current assets are a clear symptom of liquidity stress, meaning the company may struggle to meet short-term obligations without additional cash inflows or financing. The increase in current liabilities outpacing current assets indicates growing short-term debt or payables that could pressure operational continuity.

The low shareholders’ funds reflect minimal retained profits and capital, limiting the company’s ability to absorb financial shocks or invest in growth. However, the positive total assets less current liabilities, though small, suggests the company is not insolvent at the reporting date.

The director’s loan account balance has grown substantially, which while providing crucial support, also indicates the business cannot fully finance its operations through normal trade activities. This reliance on insider funding is common in micro businesses but is a sign of financial fragility.

The company’s sector—management consultancy—usually depends heavily on human capital and reputational assets rather than physical assets, which is consistent with the low fixed asset base. The very small employee count limits operational scale but reduces fixed overheads.

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4. Recommendations

To improve the company’s financial wellness and reduce symptoms of distress, consider the following:

• Improve Liquidity Management:
  Actively manage receivables and payables to reduce the net current liability gap. Seek to accelerate cash inflows and negotiate longer payment terms with creditors.

• Increase Working Capital:
  Explore options for short-term financing such as overdraft facilities or invoice financing to alleviate immediate liquidity pressure.

• Strengthen Capital Base:
  Consider capital injection from shareholders or restructure director loans into equity to improve the shareholders’ funds and reduce debt burden.

• Cost Control & Revenue Growth:
  Maintain tight control of operating expenses while focusing on expanding client base and contract sizes to increase revenues and profitability.

• Director Loan Management:
  Formalize and monitor director loans with clear terms to avoid future disputes and ensure transparency.

• Regular Financial Monitoring:
  Implement monthly cash flow forecasts and financial reviews to detect early warning signs and react promptly.

• Seek Professional Advice:
  Engage with financial advisors or accountants to explore restructuring or growth strategies tailored for micro enterprises.

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Medical Analogy Summary

80 VOICES LIMITED’s financial health shows symptoms of liquidity distress—like a patient with low blood pressure struggling to circulate vital fluids. The company’s working capital is “unwell,” with current liabilities exceeding short-term assets, indicating a need for immediate care to prevent a full-blown financial crisis. Strengthening capital and improving cash flow will act as a therapeutic regimen to restore vitality and ensure sustainable operations.

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