BATACH SOLUTIONS LTD

Executive Summary

Batach Solutions Ltd is currently experiencing significant financial strain, evidenced by negative net assets and a liquidity shortfall. The company’s financial health has deteriorated substantially over recent years, indicating urgent need for improved cash flow management and potential capital support. Prompt action to reduce expenses, enhance liquidity, and review business strategy is essential to stabilize and improve the company’s financial condition.

BATACH SOLUTIONS LTD - Analysis Report

Company Number: 12569348

Analysis Date: 2025-07-20 13:10 UTC

Financial Health Assessment for Batach Solutions Ltd (as of 30 April 2024)

---

1. Financial Health Score: D

Explanation:
The company shows signs of significant financial distress with persistent negative net assets and net current liabilities over recent years. The financial position has deteriorated from a positive net asset position in 2021 to a deeply negative position in 2024. This indicates ongoing financial strain and potential liquidity challenges, warranting a below-average rating.

---

2. Key Vital Signs

Vital Sign	Value (2024)	Interpretation
Current Assets	£136	Extremely low current assets; inadequate buffer to cover short-term obligations.
Current Liabilities	£11,685	High short-term liabilities compared to assets, indicating liquidity stress.
Net Current Assets	£-11,549	Negative working capital, signalling inability to meet short-term debts from liquid assets.
Net Assets (Equity)	£-12,639	Negative net worth; liabilities exceed assets, a symptom of financial distress.
Share Capital	£1	Nominal share capital; does not provide significant financial cushion.
Employee Count	2	Very small workforce, consistent with micro-entity status.
Filing Status	Up to date	No overdue filings, indicating compliance with statutory requirements.

---

3. Diagnosis: Financial Condition and Underlying Symptoms

• Liquidity Crisis ("Healthy Cash Flow" Absent):
  The company’s current assets (£136) are vastly insufficient compared to current liabilities (£11,685). This negative working capital ("symptom of distress") suggests Batach Solutions Ltd may have difficulty paying its short-term bills on time, increasing the risk of creditor pressure or defaults.

• Erosion of Net Worth ("Weak Vital Organs"):
  The net liabilities of £12,639 reflect that the company’s debts exceed its total assets. This negative equity condition worsened from £675 positive net assets in 2021 to negative £12,639 in 2024. This trend points to accumulated losses or unaddressed financial imbalances.

• Declining Financial Resilience:
  The stark deterioration over 3 years signals either operational challenges, insufficient revenue generation, or high overheads relative to income. Without a healthy cash flow and positive equity, the company’s financial "immune system" is compromised.

• Micro-Entity Status and Small Size:
  With only 2 employees and micro-entity classification, the company operates on a very small scale, which can limit its ability to absorb shocks or invest in growth opportunities.

• Governance and Control:
  The sole director and 100% shareholder is Mr. Amaechi Oduah, which concentrates control but may limit external strategic input.

---

4. Recommendations: Steps to Improve Financial Wellness

• Improve Liquidity Management:

  • Prioritize accelerating cash inflows by tightening credit terms or pursuing outstanding receivables.
  • Negotiate with suppliers for extended payment terms to ease short-term cash outflows.

• Cost Control and Expense Reduction:

  • Conduct a thorough review of all expenses to identify and eliminate non-essential costs.
  • Consider restructuring any ongoing contracts or commitments to reduce financial burden.

• Capital Injection or Financing:

  • Explore options for fresh equity injection or external financing to bolster working capital and restore positive net assets.
  • Engage with investors or lenders who understand the micro-entity nature and growth potential.

• Strategic Business Review:

  • Assess the business model and revenue streams to identify areas for improvement or diversification.
  • Consider seeking external advisory support to bring fresh perspectives and strategic planning.

• Regular Financial Monitoring:

  • Establish monthly cash flow forecasts and financial reviews to detect issues early ("symptoms") and respond promptly.
  • Maintain compliance with filing deadlines to avoid penalties and maintain stakeholder confidence.

---