A. STEVENS CROWD SCIENCE LTD

Executive Summary

A. STEVENS CROWD SCIENCE LTD shows chronic symptoms of financial distress, including negative working capital and equity over multiple years, signaling liquidity and solvency challenges. Without urgent intervention to improve cash flow and capital structure, the company risks further deterioration. Strategic financial management and capital injection are recommended to stabilize and recover financial health.

A. STEVENS CROWD SCIENCE LTD - Analysis Report

Company Number: 12795004

Analysis Date: 2025-07-19 11:53 UTC

Financial Health Assessment of A. STEVENS CROWD SCIENCE LTD

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1. Financial Health Score: D (Distressed)

Explanation:
The company shows persistent negative net current assets and shareholders’ funds over the last three years, indicating financial distress. The balance sheet reveals a working capital deficiency and an erosion of equity, which are symptoms of financial strain. While the company is still active and filing on time, its financial "vital signs" suggest an unhealthy state that requires urgent attention.

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2. Key Vital Signs

Metric	2022	2023	2024	Interpretation
Current Assets (£)	11	11	11	Minimal cash and receivables—very low liquidity.
Current Liabilities (£)	587	587	587	Short-term debts remain constant and significant relative to assets.
Net Current Assets (£)	-576	-576	-576	Negative working capital—company likely struggling to meet short-term obligations.
Shareholders’ Funds (£)	-576	-576	-576	Negative equity signals accumulated losses or liabilities exceeding assets.
Share Capital (£)	102	102	102	Very small capital base, typical for a micro company.
Employees	0	0	0	No staff employed, which limits operational capacity.

Interpretation of Vital Signs:

• The company’s negative net current assets over multiple years are a key symptom of financial distress, indicating it does not have enough short-term assets to cover immediate liabilities.
• Shareholders funds being negative indicate that the company has accumulated losses or debts exceeding its assets, a serious warning sign akin to a patient with declining organ function.
• The consistently low current assets suggest very limited cash reserves or receivables, which can cause cash flow problems.
• The lack of employees indicates the company may not be actively trading or is contracting out its operations, possibly limiting revenue generation.

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3. Diagnosis

Underlying Financial Condition:

1. STEVENS CROWD SCIENCE LTD is exhibiting clear symptoms of financial distress:

• Negative Working Capital: The company’s inability to cover short-term liabilities with short-term assets indicates liquidity problems—a critical "vital sign" of financial health.
• Negative Equity: This condition suggests either accumulated losses or unaddressed liabilities, diminishing the company’s net worth and signaling financial weakness.
• Stagnant Financial Position: No improvement over three years in key metrics implies chronic issues rather than a temporary setback.
• No Employees: May reflect minimal business operations or reliance on external contractors, which could be a strategic choice or a symptom of constrained resources.

The company’s financial "pulse" is weak, with ongoing deficits and limited asset buffers to withstand shocks. This condition is somewhat analogous to a patient with chronic but stable symptoms who is not currently in critical failure but at high risk of deterioration without intervention.

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4. Recommendations

To improve financial wellness and avoid progression to insolvency, the company should consider the following actions:

1. Address Working Capital Deficiency:

   • Explore ways to increase current assets, such as accelerating receivables collection or injecting cash.
   • Negotiate with creditors to extend payment terms or reduce liabilities where possible.

2. Capital Injection:

   • The negative equity position could be improved through an equity injection by the shareholder or raising funds from external sources, restoring financial "vitality."

3. Review Business Model and Operations:

   • Assess whether the current operational model is sustainable without employees or if investment in workforce or outsourcing is necessary to generate revenue.
   • Since the director is also the sole significant controller, consider strategic pivots or partnerships to broaden operational capacity.

4. Cost Management:

   • Tighten control over expenses to prevent further erosion of capital.
   • Avoid incurring additional liabilities without clear revenue generation plans.

5. Financial Monitoring and Forecasting:

   • Implement regular cash flow forecasting to detect and manage liquidity risks proactively.
   • Consider professional financial advice to structure turnaround plans.

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Executive Summary

1. STEVENS CROWD SCIENCE LTD is currently in a financially distressed state, with persistent negative working capital and shareholders’ funds indicating liquidity and solvency concerns. Immediate steps to improve cash flow, reduce liabilities, and strengthen the capital base are essential to restore financial health and support sustainable operations.