ADROIT CONSULTING GROUP LTD

Executive Summary

ADROIT CONSULTING GROUP LTD is currently in a critical financial condition with negative net assets and insufficient current assets to cover liabilities, indicating insolvency risk. Immediate action is required to improve liquidity, control costs, and restructure finances to restore stability and ensure survival. Without intervention, the company faces severe distress and potential closure.

ADROIT CONSULTING GROUP LTD - Analysis Report

Company Number: 14718362

Analysis Date: 2025-07-29 19:11 UTC

1. Financial Health Score: F (Critical Concern)

Explanation: ADROIT CONSULTING GROUP LTD shows a severely negative net asset position of £36,355, indicating liabilities exceed assets by this amount. This is a fundamental "symptom of distress" for a company and signals insolvency risk. The financial data reflects a critical imbalance between current liabilities and available assets, suggesting an urgent need for remedial action to restore financial health.

2. Key Vital Signs:

• Fixed Assets: £1,010 — Minimal long-term investment, typical for a newly incorporated micro entity.
• Current Assets: £401 — Very low liquid and short-term assets, indicating limited resources to meet immediate obligations.
• Current Liabilities: £37,766 — Relatively high short-term debts, creating pressure on liquidity.
• Net Current Assets: -£37,365 — Negative working capital, a red flag indicating the company cannot cover short-term debts with current assets.
• Total Net Assets (Shareholders’ Funds): -£36,355 — A negative equity position means the company is technically insolvent according to the balance sheet.
• Employee Count: 2 — Small workforce consistent with micro entity classification but indicates some operational activity.

3. Diagnosis:

The company’s financial statements reveal a critical liquidity and solvency issue — the "vital signs" show that current liabilities overwhelm current assets, producing a negative net working capital. This condition is analogous to a patient with dangerously low blood pressure and weak pulse: the firm lacks the necessary "cash flow circulation" to support ongoing operations or meet obligations on time. Negative equity further confirms the company’s financial "organ failure," where accumulated losses or initial funding shortfalls leave it underwater on net assets.

Given the company was incorporated in March 2023 and these are first-year micro-entity accounts, it is possible that start-up expenses or delayed revenue recognition are contributing factors. However, without sufficient current assets or capital injections, the company is at risk of insolvency or forced restructuring.

4. Recommendations:

• Immediate Cash Flow Management: Prioritize securing additional working capital through shareholder loans, equity infusion, or short-term financing to cover immediate liabilities.
• Expense Control: Review all operational costs and overheads to reduce cash burn and extend the runway.
• Revenue Generation Strategy: Accelerate client acquisition or service delivery to improve cash inflows.
• Financial Restructuring: Engage with creditors to negotiate payment terms or reduce liabilities to align with asset availability.
• Professional Advice: Consult insolvency practitioners or financial advisors early to explore turnaround options before distress worsens.
• Monitor Financial Health: Implement regular cash flow forecasting and balance sheet reviews to detect early warning signs and react proactively.

Without swift and decisive action, the company risks entering a financial "collapse" phase, which could lead to administration or liquidation.