"BETTER CALL CECIL" LTD

Executive Summary

BETTER CALL CECIL LTD is financially distressed, with negative net assets driven by unpaid tax liabilities despite being dormant in 2024. Immediate resolution of HMRC debts and financial restructuring are critical to restoring fiscal health and enabling a sustainable business future.

"BETTER CALL CECIL" LTD - Analysis Report

Company Number: 13105018

Analysis Date: 2025-07-19 12:25 UTC

Financial Health Assessment: "BETTER CALL CECIL" LTD

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1. Financial Health Score: D

Explanation:
The company currently shows clear symptoms of financial distress, primarily due to negative net assets and outstanding creditors with significant liabilities owed to HMRC. Although it was dormant during the latest financial year, the accumulated deficit and creditor position warrant caution. The score reflects a need for urgent financial intervention to restore health.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Turnover	£0 (Dormant)	No trading activity in 2024; company inactive.
Net Assets	-£6,322	Negative equity indicates liabilities exceed assets.
Current Assets	£1	Minimal liquid assets; extremely limited cash.
Current Liabilities	£6,323	Significant debts, mainly to HMRC.
Shareholders' Funds	-£6,323	Shareholder equity wiped out by losses/liabilities.
Creditors >1 Year (HMRC)	£6,323	Long-term tax debt; a critical financial burden.

Vital Signs Explanation:

• Negative net assets ("unhealthy balance sheet") signify the company owes more than it owns.
• Dormant status in 2024 means no trading, reflecting possible strategic pause or financial distress.
• High creditor balance owed to HMRC is a red flag indicating tax arrears, which may trigger enforcement actions.
• Minimal cash reserves ("weak cash flow") limit the company’s ability to pay off debts or invest.

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3. Diagnosis

The company has transitioned from modest trading activity in 2021-2023 to dormancy in 2024, accompanied by a significant increase in liabilities, notably tax debt to HMRC. This "symptom" suggests possible cash flow problems leading to non-payment of taxes. With net assets turning negative and shareholder funds in deficit, the company is in a state of financial distress. If untreated, this could lead to insolvency risks.

The director, who owns 100% control, has not injected further share capital since incorporation, limiting the company’s "financial immune response." The dormant status may be a strategic attempt to pause operations and manage liabilities, but the underlying illness—tax debts and negative equity—remains.

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4. Recommendations

• Urgent Tax Debt Resolution: Engage with HMRC to negotiate a payment plan or settlement for the £6,323 owed. Ignoring this will worsen the prognosis.
• Financial Restructuring: Consider capital injection or restructuring liabilities to restore positive equity and improve liquidity.
• Reactivation with Business Plan: If the company intends to resume trading, develop a clear cash flow forecast and cost management plan to rebuild revenue and profitability.
• Regular Financial Monitoring: Implement monthly cash flow and creditor review to detect early signs of distress and prevent recurrence.
• Professional Advice: Consult a financial advisor or insolvency practitioner to explore options such as Company Voluntary Arrangement (CVA) or other restructuring tools if debts are unmanageable.
• Compliance Maintenance: Continue timely filing of accounts and confirmation statements to avoid penalties and preserve company status.

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Summary

The company is currently dormant with significant tax liabilities causing negative equity and strained financial health. Immediate action to manage creditor obligations, especially HMRC debts, combined with financial restructuring and careful cash flow management, is essential to improve its viability and avoid insolvency risks.