Company Number: 12592130

Analysis Date: 2025-07-20 15:59 UTC

Financial Health Assessment of ASSURED CHOICE LTD

---

1. Financial Health Score: D

Explanation:
The company shows significant financial distress with consistently negative net assets and working capital deficits. The balance sheet reveals a large imbalance between current liabilities and current assets, indicating liquidity problems and potential solvency risks. These symptoms suggest a fragile financial state requiring urgent remedial action to avoid further deterioration.

---

2. Key Vital Signs

Metric	Latest (2024)	Interpretation
Current Assets	£613	Extremely low short-term assets; insufficient buffer for liabilities
Current Liabilities	£84,707	High short-term debts due imminently
Net Current Assets (Working Capital)	-£84,094	Negative working capital — a critical symptom of liquidity distress
Net Assets (Shareholders' Funds)	-£84,094	Negative equity position indicates insolvency on a balance sheet basis
Share Capital	£1	Minimal paid-in capital; very limited equity cushion
Average Number of Employees	0	No staff employed, possibly indicating minimal operational activity
Account Category	Micro	Small scale with limited filing requirements
Company Status	Active	Still trading but under financial strain

---

3. Diagnosis

The company’s financial “vital signs” clearly show symptoms of severe financial distress, resembling a patient with critical liquidity deficiency and structural insolvency. The negative net current assets indicate that the company does not have enough short-term resources to meet its immediate debts, a classic sign of cash flow problems. The negative net assets mean liabilities exceed assets, which is a fundamental sign of insolvency.

Over the years, the company’s net assets have worsened significantly from a deficit of approximately £28,000 in 2020 to over £84,000 by 2024, showing a troubling trend of accumulated losses or debts. The minimal share capital and lack of employees suggest limited operational scale or possibly a company in hibernation or run-down mode.

The company operates in management consultancy (SIC 70229), which typically depends on human capital and sustained client engagement. The absence of employees and negligible current assets are alarming for such a business model, hinting at either very low trading activity or that the company is not currently functioning as a going concern.

---

4. Recommendations

To stabilize and improve the company’s financial health, consider the following actions:

• Immediate Cash Flow Assessment & Management:
  Conduct a detailed cash flow forecast to identify when payments are due and prioritize clearing urgent liabilities to avoid insolvency proceedings.

• Capital Injection or Debt Restructuring:
  Explore options to inject fresh equity capital or negotiate with creditors to restructure or extend payment terms to ease liquidity pressures.

• Operational Review:
  Reassess business activities to boost revenue generation—consider hiring key personnel or outsourcing essential functions to revive operational capability.

• Cost Control:
  Cut non-essential expenses aggressively to conserve cash. With zero employees, fixed costs may already be minimal, but overheads should be reviewed.

• Seek Professional Advice:
  Engage insolvency practitioners or financial advisors specializing in turnaround to explore rescue options before financial distress escalates.

• Monitor Compliance:
  Maintain timely filing of accounts and confirmation statements to avoid penalties and maintain stakeholder confidence.

---

Medical Analogy Summary

ASSURED CHOICE LTD is currently exhibiting "symptoms of severe financial distress," with "vital signs" such as negative working capital and net assets indicating a "weak heart" unable to pump sufficient cash to meet obligations. Without immediate intervention ("medical treatment"), the company risks "cardiac arrest" in the form of insolvency or forced closure. Early diagnosis suggests potential for recovery if aggressive "treatment" is commenced promptly.

---