ACADEMATOR LTD

Executive Summary

ACADEMATOR LTD is currently experiencing financial strain characterized by negative working capital and net assets, indicating liquidity and solvency challenges. While the company remains compliant with filings, urgent measures such as capital injection and liability management are necessary to restore financial health. Prompt action can improve the company’s financial stability and support future growth in its consultancy and software development activities.

ACADEMATOR LTD - Analysis Report

Company Number: 13757826

Analysis Date: 2025-07-29 20:57 UTC

Financial Health Assessment: ACADEMATOR LTD

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1. Financial Health Score: D

Explanation:
ACADEMATOR LTD shows signs of financial distress, primarily reflected in its net liabilities position and negative working capital for the latest financial year. While the company is still active and filing on time, the recurring negative net assets and increasing current liabilities compared to current assets signal a "symptom" of liquidity strain and potential solvency risk. The score "D" indicates that the company is financially vulnerable and requires immediate attention to improve its balance sheet and cash flow health.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Current Assets	375	Very low cash or liquid resources available
Current Liabilities	3,400	Short-term debts are significantly higher
Net Current Assets (Working Capital)	-3,025	Negative working capital; company may struggle to meet short-term obligations
Net Assets (Shareholders' Funds)	-3,025	Negative equity; liabilities exceed assets
Number of Employees	0	No staffing costs, possibly a sole director operation
Account Category	Micro	Small size with limited filing requirements
Filing Status	Up to date	No overdue filings, good compliance

Interpretation of Vital Signs:

• Negative Working Capital ("symptom of distress"): The company has £3,025 more short-term liabilities than current assets, indicating difficulty covering immediate bills.
• Negative Net Assets ("diagnostic red flag"): The company’s total liabilities exceed its total assets by £3,025, suggesting an erosion of equity and a potential threat to solvency if not addressed.
• Small scale and no employees: The micro-entity classification and zero employees imply minimal operations or a start-up phase with limited cash flow generation.
• Good compliance: Timely filing of accounts and confirmation statements is a positive sign indicating management diligence.

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3. Diagnosis

ACADEMATOR LTD is currently in a financially precarious condition. The company is operating with negative net assets and negative working capital, symptomatic of a cash flow crunch or accumulated losses. The small size and no employees may mean the business is early stage or in a development phase, but the negative equity suggests that accumulated losses or unpaid liabilities are weighing down its financial health.

The presence of only one director and shareholder controlling 75-100% of shares indicates a tightly held, possibly founder-operated business. While this can allow swift decision-making, it also concentrates risk.

The lack of an audit (allowed under micro-entity exemptions) means we rely solely on management-prepared accounts, but no off-balance sheet arrangements or contingent liabilities were disclosed, which reduces complexity.

Overall, the company shows symptoms of financial distress that could worsen without intervention, primarily due to inadequate liquid resources to cover debts and a negative equity base.

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4. Recommendations

To improve financial wellness and move towards a healthier balance sheet, the company should consider:

1. Increase Cash Reserves: Inject additional capital or secure short-term financing to improve liquidity and ensure current liabilities can be met promptly.
2. Manage Liabilities: Negotiate with creditors to extend payment terms or reduce obligations to improve working capital position.
3. Revenue Growth / Cost Control: Focus on enhancing sales or project revenues, especially given the software development and consultancy activities, while controlling overhead costs strictly.
4. Equity Injection: The sole shareholder (director) could consider increasing equity funding to restore positive net assets and strengthen the balance sheet.
5. Regular Financial Monitoring: Establish monthly cash flow forecasting to detect liquidity issues early and take corrective action.
6. Explore Funding Support: Investigate government grants, loans, or investor funding targeted at micro and small tech companies to stabilize finances.
7. Professional Advice: Engage financial or restructuring advisors if cash flow pressures increase to explore turnaround options.

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Medical Analogy Summary:

ACADEMATOR LTD’s financial statements reveal a business with “laboured breathing”—struggling to breathe financially due to limited cash (low current assets) and high short-term obligations (current liabilities). The “negative balance sheet pulse” (negative net assets) is a warning sign akin to weakened vital organs in urgent need of support. Without timely interventions, the company risks a “financial collapse”. However, with prompt capital infusion and operational adjustments, the company can stabilize and recover.

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