BEAGIO LTD

Executive Summary

BEAGIO LTD is exhibiting significant liquidity issues and negative net assets, indicating financial distress despite its active status and micro-entity classification. Immediate focus on liquidity management, cost control, and business model review is essential to restore financial health and avoid insolvency risks.

BEAGIO LTD - Analysis Report

Company Number: 13621291

Analysis Date: 2025-07-29 15:41 UTC

Financial Health Assessment for BEAGIO LTD

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1. Financial Health Score: D

Explanation:
The company shows persistent negative net current assets (working capital) over the last two years, indicating liquidity stress. The net assets have shifted from a healthy positive position in 2021 to a negative position in 2023 and 2024, which suggests an erosion of the company’s financial base. This score reflects significant symptoms of financial distress and the need for remedial action.

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2. Key Vital Signs (Core Financial Metrics)

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	24	16	Very low cash and short-term assets, insufficient to cover short-term obligations.
Current Liabilities	2,613	1,514	Short-term debts increasing, now substantially exceeding current assets.
Net Current Assets (Working Capital)	-2,589	-1,498	Negative working capital indicates "symptoms of liquidity distress" — unable to meet short-term debts.
Net Assets (Shareholder Funds)	-2,589	-1,498	Negative net assets point to "financial anemia"—company’s liabilities exceed assets.
Employees	1	1	Micro-entity with minimal staffing, likely low operating scale and limited cash-generating capacity.

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3. Diagnosis: Financial Condition and Underlying Health

BEAGIO LTD is exhibiting clear signs of financial distress. The negative net current assets ("working capital deficit") over the last two years are a critical symptom indicating the company lacks sufficient liquid resources to cover immediate liabilities. This is a classic "cash flow illness" where obligations exceed short-term resources, posing a risk of insolvency if not addressed.

The deterioration from positive net assets (£10,721 in 2021) to negative net assets (-£2,589 in 2024) shows "structural financial weakness"—the company's net worth has been eroded, possibly by losses or unrecorded liabilities. This erosion indicates ongoing operational or financial challenges that have not been reversed.

The micro-entity status and single employee suggest a small operational scale, which limits the ability to absorb shocks or raise capital quickly. The industry classification in health and medical activities usually implies steady cash flows, but the financials suggest this company is not yet achieving sustainable profitability or cash generation.

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4. Recommendations: Roadmap to Financial Wellness

• Improve Liquidity Management:
  Address the "cash flow illness" by negotiating better payment terms with creditors, accelerating receivables, or securing short-term financing to restore positive working capital.

• Cost Control and Efficiency:
  Review operational expenses carefully given the single-employee structure. Streamlining costs can help reduce pressure on cash flow.

• Review Business Model and Revenue Streams:
  Investigate causes of negative net assets—are losses being incurred? Is revenue insufficient? Consider revising pricing, expanding client base, or diversifying services to improve profitability.

• Seek Professional Advice:
  Engage with financial advisors or turnaround specialists to develop a recovery plan and explore restructuring options if needed.

• Monitor Financial Performance Closely:
  Implement more frequent financial reporting to catch warning signs early and adapt strategy promptly.

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Medical Analogy Summary

BEAGIO LTD is currently showing "symptoms of financial distress" akin to a patient with low blood pressure and anemia—insufficient funds to meet immediate obligations and declining net worth, signaling a weakened financial "immune system." Without intervention, these symptoms could worsen, risking insolvency. However, with timely and targeted action, there is potential for recovery and stabilization.

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