Company Number: 13599117

Analysis Date: 2025-07-20 15:39 UTC

Financial Health Assessment for Bath Counselling Service Limited

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1. Financial Health Score: D

Explanation:
The company shows a concerning financial position with net current liabilities and negative net assets as of the latest financial year (2024). This indicates financial stress, as the company's short-term liabilities exceed its current assets, and overall equity is negative. Given this micro-entity has no employees and minimal assets, the score reflects early warning signs of financial distress but not yet insolvency.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	604	0	Very low cash or receivables; minimal liquid resources available.
Current Liabilities	4,456	0	Short-term debts or payables have appeared, raising liquidity concerns.
Net Current Assets	-3,852	0	Negative working capital; the company may struggle to meet short-term obligations.
Total Assets Less CL	-3,851	1	Negative net assets indicate liabilities exceed assets.
Net Assets (Shareholders’ Funds)	-3,851	1	Negative equity signals accumulated losses or capital erosion.
Employees	0	0	No staff employed, indicating either limited operations or outsourcing.

Interpretation of Vital Signs:

• Healthy cash flow is absent, as current liabilities overwhelm current assets.
• Symptoms of distress include negative net assets and working capital deficit.
• The company's financial base has weakened significantly from 2023 to 2024, moving from a neutral (1 GBP) net asset position to a negative £3,851.
• No audit requirements or employee costs reduce overhead but also suggest limited scale.

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3. Diagnosis

Bath Counselling Service Limited is currently experiencing early financial distress characterized by a lack of liquidity and negative equity. The business has accumulated liabilities without corresponding assets or income generation sufficient to cover these obligations. The absence of employees and minimal assets suggest the company is either in a startup phase with delayed revenue or has limited operational activity. The shortfall in net current assets indicates the company may face challenges meeting creditor demands in the short term.

This pattern resembles a patient with early symptoms of financial illness: while not critically ill (insolvent or in liquidation), the company requires close monitoring and intervention to avoid deterioration.

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4. Recommendations

1. Improve Liquidity:

   • Seek to increase cash reserves through additional capital injection by shareholders or short-term financing.
   • Accelerate receivables collection if any are outstanding or secure payment terms with creditors to ease cash outflow.

2. Cost Management:

   • Maintain minimal fixed costs, considering the company currently employs no staff.
   • Review and prioritize essential expenses to preserve cash.

3. Revenue Generation:

   • Develop a clear plan to increase sales or service delivery that generates positive cash flow.
   • Explore partnerships or contracts in the "Other human health activities" sector (SIC 86900) relevant to counselling services.

4. Financial Monitoring:

   • Implement regular financial reviews to track improvements or further deterioration.
   • Consider professional advice to restructure any debts or negotiate terms with creditors.

5. Strategic Planning:

   • Assess business model viability given financial constraints.
   • If necessary, prepare contingency plans including potential restructuring or seeking external investment.

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