APEX SOLUTIONS LONDON LTD

Executive Summary

Apex Solutions London Ltd is currently in a vulnerable financial position, with significant liquidity issues, negative working capital, and deteriorating net assets indicating distress. Immediate focus on cash flow management and capital restructuring is critical to stabilize operations and improve financial health. Without prompt intervention, the risk of insolvency remains high.

APEX SOLUTIONS LONDON LTD - Analysis Report

Company Number: 14143000

Analysis Date: 2025-07-29 19:47 UTC

Financial Health Assessment of Apex Solutions London Ltd as of 31 May 2024

---

1. Financial Health Score: D

Explanation:
The company shows significant financial distress. Negative net assets and sharply negative working capital reveal a precarious financial condition. Persistent net liabilities and increasing creditor levels indicate symptoms of cash flow problems and reliance on external funding or overdue payables. Immediate action is needed to stabilize finances.

---

2. Key Vital Signs (Core Financial Metrics)

Metric	2024 Value	Interpretation
Fixed Assets	£13,692	Small asset base, likely equipment or machinery.
Current Assets (incl. Cash)	£504	Critically low liquidity; cash reserves insufficient.
Debtors	£0	No receivables, possibly indicating lack of sales or credit sales.
Current Liabilities	£46,633	High short-term obligations; large creditor balances.
Net Current Assets	-£46,129	Severe negative working capital; signals inability to cover short-term debts.
Net Assets (Shareholders' Funds)	-£32,437	Negative equity; company owes more than it owns.
Change in Net Assets YoY	From -£14,032 to -£32,437	Deterioration of £18,405 over one year; worsening financial position.

---

3. Symptoms Analysis

• Healthy Cash Flow?
  The company’s cash balance has dropped from £1,582 to £504 in a year, a red flag indicating liquidity strain. No debtors suggest either no sales on credit or difficulty collecting payments, both concerning.

• Working Capital Deficiency
  Negative net current assets (working capital) of over £46k means the company cannot meet its short-term liabilities with available liquid assets. This is like a patient with insufficient blood flow—urgent intervention is required.

• Increasing Creditors
  Creditors have increased from £33,600 to £46,633, suggesting either delayed payments to suppliers or increased borrowing. This could be a symptom of cash flow distress or operational inefficiency.

• Negative Equity
  Shareholders’ funds are deeply negative, reflecting accumulated losses. This suggests the company is "underwater" financially, a serious condition comparable to a patient with declining vital organ function.

• Asset Base and Depreciation
  Fixed assets have decreased slightly (£15,509 to £13,692) due to depreciation outpacing additions. This modest asset base limits collateral for loans or investment.

• No Employees
  The company reports no employees, indicating it may be a very small operation or relying on contractors. This could limit growth potential but reduce fixed costs.

---

4. Diagnosis

Apex Solutions London Ltd is exhibiting clear signs of financial distress characterized by:

• Severe liquidity constraints with critically low cash and lack of receivables
• Negative working capital, indicating inability to cover short-term debts
• Escalating liabilities without corresponding asset growth
• Negative net assets, indicating erosion of shareholder value and possible insolvency risk if trends continue

The company’s financial “vital signs” suggest it is in a fragile state, with symptoms pointing to cash flow problems, insufficient capital, and operational challenges affecting sustainability.

---

5. Prognosis

Without corrective measures, the company risks insolvency or forced restructuring. The financial condition is unlikely to improve spontaneously given worsening net liabilities and falling liquidity. However, the prognosis could improve with:

• Fresh capital injection or debt restructuring
• Improved cash flow management and cost control
• Enhanced revenue generation or receivables collection

---

6. Recommendations (Treatment Plan)

1. Urgent Cash Flow Management:

   • Prepare a detailed cash flow forecast.
   • Prioritize payments to avoid creditor pressure and penalties.
   • Accelerate collection of any outstanding receivables or convert sales to immediate payment terms.

2. Capital Injection or Restructuring:

   • Consider raising equity capital or negotiating with lenders to restructure debts.
   • Explore potential investor interest or director loans to bolster liquidity.

3. Cost Rationalization:

   • Review all expenses to cut non-essential costs.
   • Avoid new fixed commitments until financial stability improves.

4. Revenue Enhancement:

   • Reassess sales strategies, especially online retail segment (SIC 47910).
   • Explore new markets or customer segments to increase turnover.

5. Regular Financial Monitoring:

   • Implement monthly financial reporting to detect early symptoms of distress.
   • Engage professional advice for turnaround strategies.

---

Executive Summary