BESPOKE EVENTS MANAGEMENT LTD

Executive Summary

BESPOKE EVENTS MANAGEMENT LTD is currently facing significant financial challenges, marked by negative working capital and a steep decline in net assets over the past year. These symptoms indicate liquidity stress and potential insolvency risk. Immediate action focused on cash flow management, liability restructuring, and capital injection is critical to restore financial health and ensure business survival.

BESPOKE EVENTS MANAGEMENT LTD - Analysis Report

Company Number: 12780153

Analysis Date: 2025-07-20 14:07 UTC

Financial Health Assessment for BESPOKE EVENTS MANAGEMENT LTD

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1. Financial Health Score: D

Explanation:
The company exhibits significant financial distress signs, primarily due to negative net assets, heavy current liabilities outweighing current assets, and declining working capital. These are critical "symptoms" indicating liquidity and solvency challenges. While the business remains active, these financial "vital signs" suggest it is far from a healthy state.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	2,231	Minimal long-term assets, typical for a micro entity with limited capital investment.
Current Assets	39,484	Cash and short-term assets show some liquidity but insufficient relative to liabilities.
Current Liabilities	112,698	Very high short-term obligations, indicating immediate cash flow stress ("symptom of distress").
Net Current Assets	-73,214	Negative working capital; company cannot cover short-term debts with available short-term assets.
Total Assets less Current Liabilities	-70,983	Reflects overall negative asset coverage after settling current debts.
Net Assets (Shareholders Funds)	-72,308	Negative equity means liabilities exceed total assets, indicating insolvency risk.
Share Capital	400	Very low share capital base, limiting financial buffer and leverage capacity.
Employee Count (Average)	3	Small workforce consistent with micro category but fixed overheads may strain finances.

Trend Analysis:

• Sharp deterioration from 2023 to 2024: Net current assets fell from +£1,838 to -£73,214, and net assets from -£3,448 to -£72,308.
• This indicates rapid deterioration in liquidity and solvency over one year, a red flag for business continuity.

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3. Diagnosis: What the Financial Data Reveals

The company is showing clear symptoms of financial distress, much like a patient with dangerously low blood pressure and impaired organ function. The negative working capital and net asset position indicate the company is struggling to meet short-term obligations and is technically insolvent on a balance sheet basis.

The steep increase in current liabilities in 2024 suggests the company may have taken on significant short-term debt or delayed payments, possibly to manage cash flow. Such a condition is unsustainable long-term without corrective action.

The limited fixed assets and small share capital reflect a young, small-scale business with limited investment base and financial reserves. The directors must be vigilant to avoid further deterioration which could lead to insolvency proceedings.

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4. Recommendations: Steps to Improve Financial Wellness

1. Urgent Cash Flow Management:

   • Implement tight controls on receivables and payables to improve liquidity.
   • Negotiate extended payment terms with creditors to ease immediate cash outflows.

2. Restructure Current Liabilities:

   • Explore refinancing options to convert short-term debts into medium/long-term obligations.
   • Consider discussions with lenders or suppliers for payment plans.

3. Increase Capital Base:

   • Injection of additional equity from shareholders or new investors to restore positive net assets and improve solvency.

4. Cost Control and Efficiency Improvements:

   • Review operational expenses and reduce overheads where possible.
   • Assess workforce needs and productivity to ensure cost-effective staffing.

5. Strategic Business Review:

   • Reassess the business model and market positioning to boost revenues and stabilize cash flow.
   • Consider diversifying services or focusing on more profitable segments.

6. Regular Financial Monitoring:

   • Adopt more frequent financial reviews and forecasting to detect early signs of distress.
   • Engage professional advice to guide turnaround strategies if needed.

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Medical Analogy Summary

The company's financial condition resembles a patient in acute distress with dangerously low liquidity (blood flow) and negative equity (organ failure signs). Immediate intervention is necessary to stabilise the condition and prevent collapse (insolvency). Without corrective therapy, the prognosis is poor.

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