AUNTYB CONSULTING SERVICES LTD

Executive Summary

AUNTYB CONSULTING SERVICES LTD exhibits significant financial distress characterized by severely reduced cash reserves, negative working capital, and a sharp decline in net assets due to asset revaluation and likely operational losses. Immediate focus on improving liquidity and restructuring liabilities is critical to prevent further deterioration and ensure business continuity.

AUNTYB CONSULTING SERVICES LTD - Analysis Report

Company Number: 12831506

Analysis Date: 2025-07-20 13:32 UTC

Financial Health Assessment: AUNTYB CONSULTING SERVICES LTD

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress, indicated by a sharp decline in net assets and cash reserves, coupled with substantial current liabilities. Although it remains solvent on paper, the "vital signs" suggest weak financial health requiring urgent attention.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£55,000	Moderate investment, mostly in investment property.
Cash at Bank	£150	Critically low; signals poor liquidity and risk of cash flow problems.
Current Liabilities	£54,142	High short-term obligations relative to cash and assets.
Net Current Assets (Working Capital)	-£53,992	Negative working capital; symptoms of cash flow distress.
Total Assets Less Current Liabilities	£1,008	Barely positive assets after covering short-term debts; borderline solvency.
Net Assets / Shareholders’ Funds	£1,008	Drastic drop from £21,827 in prior year; indicates erosion of equity.
Share Capital	£1	Nominal capital, typical for small private companies.

Trend Analysis:

• The fixed assets declined by £25,000 due to revaluation, reducing the asset base.
• Cash reserves dropped from £4,522 to £150, worsening liquidity.
• Current liabilities remain high and stable around £54k-£59k, while cash and assets to cover these have diminished.
• Net assets plunged from £21,827 to just £1,008, showing a significant loss of retained earnings or capital erosion.

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3. Diagnosis

The financial "symptoms" of AUNTYB CONSULTING SERVICES LTD resemble a patient with declining health due to poor liquidity and decreasing net worth. The company’s current liabilities far exceed its liquid assets, resulting in negative working capital — akin to a patient with insufficient blood flow to vital organs.

The significant drop in net assets arises from a revaluation of investment property (fixed asset) and likely operational losses, depleting reserves. The near absence of cash signals an inability to meet short-term obligations promptly, which could lead to payment defaults or supplier credit issues.

The company's business model, classified under real estate agencies and related letting activities, typically requires stable cash flow for operational continuity and to maintain asset values. The downward trend in liquidity and equity suggests underlying operational or market challenges.

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4. Recommendations

• Improve Liquidity:

  • Immediate focus on cash flow management is critical. Consider accelerating receivables collection, negotiating extended payment terms with creditors, or securing short-term financing to restore healthy cash flow.

• Asset Utilisation Review:

  • Evaluate the investment property portfolio for potential sale or refinancing opportunities to unlock cash and reduce liabilities.

• Cost Control and Profitability:

  • Conduct a detailed review of operating expenses to identify and eliminate inefficiencies. Enhancing profitability will rebuild reserves and stabilize equity.

• Financial Monitoring:

  • Implement rigorous financial reporting and cash flow forecasting to detect early signs of distress and manage working capital proactively.

• Stakeholder Communication:

  • Maintain transparent communication with creditors and investors regarding the company’s financial position and recovery plans to preserve trust.

• Professional Advice:

  • Given the symptoms of financial stress, seeking advice from financial restructuring professionals may be beneficial to explore turnaround strategies.

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Medical Analogy Summary

The company’s financial “pulse” is weak with dangerously low liquidity and a critical drop in net assets. Without timely intervention, it risks “organ failure” — inability to meet obligations — which could lead to insolvency. Prompt “treatment” focusing on cash flow, cost management, and asset optimisation is essential to restore “health” and viability.

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