BASHKY LIMITED

Executive Summary

BASHKY LIMITED shows early-stage financial distress with negative equity and poor liquidity despite a strong fixed asset base in real estate. Immediate focus on improving cash flow, restructuring debt, and developing operational revenues is crucial to avoid insolvency risks. With timely interventions, the company can stabilize and build a healthier financial foundation.

BASHKY LIMITED - Analysis Report

Company Number: 14502201

Analysis Date: 2025-07-29 12:33 UTC

Financial Health Assessment: BASHKY LIMITED

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1. Financial Health Score: D

Explanation:
BASHKY LIMITED’s financial metrics reveal significant concerns, primarily a negative net asset position, indicating the company’s liabilities exceed its assets. This suggests financial distress symptoms that require urgent attention, though the company remains active and compliant. The grade D reflects a fragile financial state with potential solvency risks.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	294,000	Substantial investment in long-term assets, likely property, given SIC codes related to real estate. Indicates asset base strength.
Current Assets	1,315	Very low liquid assets available for day-to-day operations; indicates tight liquidity.
Current Liabilities	121,422	High short-term debts due within one year; liquidity pressure evident.
Net Current Assets	-120,107	Negative working capital; a symptom of cash flow stress and potential operational challenges.
Creditors due after 1 year	187,910	Significant long-term debt, adding to financial burden.
Net Assets (Total Equity)	-14,017	Negative net worth; company owes more than it owns, a serious financial health warning.
Shareholders’ Funds	-14,017	Mirrors net assets; indicates cumulative losses or negative retained earnings.
Employees	0	No staff employed yet, which could mean minimal operational activity or early-stage business.

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3. Diagnosis

The company displays clear symptoms of financial distress:

• Negative Equity: The balance sheet shows net liabilities of £14,017, meaning the total debts exceed total assets. This is akin to a patient having a dangerously low red blood cell count—signaling a critical deficit that threatens overall health and survival.

• Poor Liquidity / Cash Flow: Current assets of only £1,315 against current liabilities of £121,422 means the company lacks the short-term cash or assets to cover imminent obligations. This is similar to a heart struggling to pump enough blood to meet immediate demands.

• High Debt Load: The company carries significant long-term liabilities of £187,910, which puts pressure on future cash flows and growth potential.

• No Employees: Suggests the company may be in a set-up phase, has outsourced operations, or is not yet generating operational income. While not uncommon for new micro-entities, this limits internal capacity to drive revenue.

• Asset Base: The £294,000 fixed assets indicate the company owns or leases significant property or equipment, consistent with its real estate-related SIC codes. This is a positive sign, but the asset base is overshadowed by liabilities.

In summary, BASHKY LIMITED’s financial "vital signs" reflect a company in the early stages with considerable financial strain—negative net worth and liquidity concerns—potentially due to start-up costs or financing arrangements. Without intervention, these symptoms could worsen, risking insolvency.

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4. Recommendations

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

1. Improve Liquidity:

   • Seek short-term financing or inject working capital to cover current liabilities and ease cash flow stress.
   • Negotiate extended payment terms with creditors to reduce immediate outflows.

2. Debt Restructuring:

   • Explore refinancing options to restructure or reduce long-term debt burden, potentially lowering interest costs and improving net asset position.

3. Operational Development:

   • Begin generating revenue streams through active property leasing or sales aligned with SIC codes.
   • Consider hiring or outsourcing key operational roles to boost business activity and income.

4. Regular Financial Monitoring:

   • Implement monthly cash flow statements and forecasts to detect early warning signs and manage liquidity proactively.
   • Review costs and cut unnecessary expenditures to conserve cash.

5. Equity Injection:

   • Owners or investors may consider capital injections to restore positive equity and support growth plans.

6. Professional Advice:

   • Engage with financial advisors or insolvency practitioners early if conditions worsen, to explore turnaround or restructuring options.

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