AKW FINANCIAL CONSULTING LIMITED

Executive Summary

AKW Financial Consulting Limited is experiencing significant financial strain, with negative net assets and working capital deficits signaling liquidity challenges. Immediate actions focusing on cash flow management, capital strengthening, and cost control are crucial to reversing this distress and improving the company’s financial outlook.

AKW FINANCIAL CONSULTING LIMITED - Analysis Report

Company Number: 13151065

Analysis Date: 2025-07-29 21:05 UTC

Financial Health Assessment of AKW Financial Consulting Limited

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1. Financial Health Score: D (Poor)

Explanation:
The company is exhibiting significant financial distress, primarily due to negative net assets and net current liabilities, indicating a fragile financial state. While the business remains active and compliant with filing requirements, the balance sheet reveals symptoms of financial strain that require urgent attention.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	4,632	13,877	Shrinking liquid assets — a sign of deteriorating liquidity.
Cash	4,632	4,128	Slightly improved cash position but still very low overall.
Debtors	0	9,749	Loss of receivables, possibly due to write-offs or collection failure.
Current Liabilities	20,382	19,421	Rising short-term obligations — potential liquidity pressure.
Net Current Assets	-15,750	-5,544	Negative working capital — "symptom of cash flow distress".
Net Assets (Shareholders' Funds)	-15,750	-5,544	Negative equity — indicates accumulated losses and insolvency risk.
Share Capital	100	100	Minimal capital base — limited financial buffer.

Additional Notes:

• No long-term assets are reported, indicating the company may rely heavily on current operations and cash flow.
• The company has a bank loan overdraft of £9,008 (2024), adding financial leverage and risk.
• Corporation tax liability remains significant (£9,848 in 2024), suggesting taxable profits or deferred tax payments adding to short-term cash demands.

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3. Diagnosis

AKW Financial Consulting Limited shows clear "symptoms of distress" in its financial vital signs. The most concerning is the negative net current assets of £15,750 and net liabilities of the same amount, which suggest that current liabilities exceed current assets by a wide margin, impairing the firm's short-term financial health and ability to meet immediate obligations.

The negative shareholders’ funds indicate accumulated losses well in excess of the minimal capital invested, pointing to ongoing operational losses or an inability to generate sufficient profit to build equity. The absence of debtors in the latest year may signal collection issues or client attrition, worsening cash flow.

Despite these challenges, the company remains active with directors managing the business. The filing of accounts and confirmation statements are up to date, reflecting regulatory compliance, which is a positive sign in managing corporate governance under stress.

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4. Recommendations

To improve financial wellness and recover from current distress, AKW Financial Consulting Limited should consider the following:

• Enhance Cash Flow Management:

  • Tighten credit control and debt collection to rebuild debtors and improve working capital.
  • Negotiate extended payment terms with creditors to ease liquidity pressure.
  • Monitor cash flow closely to avoid overdraft reliance.

• Increase Capital Base:

  • Consider a capital injection from shareholders or new investors to reduce negative equity and strengthen the balance sheet.
  • Explore convertible loans or equity crowdfunding if appropriate for the business model.

• Cost Control and Profitability Improvement:

  • Review operating expenses and overheads to identify savings.
  • Focus on revenue-generating activities and client retention to boost turnover.

• Financial Restructuring:

  • Engage with financial advisors to explore options for refinancing bank loans or negotiating tax liabilities.
  • Prepare a turnaround plan including realistic cash flow forecasts and break-even analysis.

• Regular Monitoring of Financial Vital Signs:

  • Implement monthly financial reviews to detect early warning signs and adjust strategy promptly.
  • Maintain transparent communication with stakeholders about financial health and recovery plans.

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Executive Summary

AKW Financial Consulting Limited is currently in a financially fragile state with negative net assets and working capital deficits indicating liquidity and solvency challenges. While the company remains active and compliant with filings, urgent steps are needed to improve cash flow, rebuild equity, and restore profitability to avert further deterioration. Proactive financial management and strategic restructuring can help stabilize and enhance future financial health.