BEYOND CONDITIONING LTD

Executive Summary

BEYOND CONDITIONING LTD currently exhibits financial distress characterized by negative net assets and working capital deficits, indicating liquidity and solvency challenges. Despite being compliant with filings and active, the business requires urgent cash flow management, cost control, and potential capital infusion to stabilize. Strategic operational improvements led by the new director are critical to reversing the downward financial trend and ensuring future viability.

BEYOND CONDITIONING LTD - Analysis Report

Company Number: 13889259

Analysis Date: 2025-07-20 17:47 UTC

Financial Health Assessment for BEYOND CONDITIONING LTD

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1. Financial Health Score: D

Explanation:
The company shows ongoing financial distress with negative net assets and worsening working capital over the past two years. While it remains active and compliant with filings, its balance sheet reveals symptoms akin to a patient with chronic liquidity and solvency issues. The negative equity and net current liabilities are warning signs that the company is under financial strain and requires intervention to improve its financial wellness.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Net Assets	-2,120	Negative net assets indicate liabilities exceed assets, suggesting insolvency symptoms.
Net Current Assets	-2,362	Negative working capital (current assets < current liabilities) signals liquidity distress.
Cash at Bank	1,013	Modest cash reserves, but insufficient relative to short-term obligations (£3,375).
Fixed Assets	242	Minimal investment in long-term assets, indicating a lean asset base.
Shareholders’ Funds	-2,220	Negative equity reflects accumulated losses and a weakened capital structure.
Liabilities (Current)	3,375	Current liabilities have increased significantly, increasing pressure on liquidity.
Trend in Net Assets	-780 (2023) to -2,120 (2024)	Deteriorating financial position year-over-year, indicating worsening financial health.
Average Employees	1	Very small workforce, likely reflecting micro/small company scale and limited operational scope.

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3. Diagnosis

BEYOND CONDITIONING LTD exhibits several "symptoms of distress" commonly seen in financially challenged businesses:

• Liquidity Stress: Negative net current assets highlight that the company may struggle to meet short-term debts as they fall due. The cash reserves are insufficient compared to current liabilities, suggesting a tight cash flow situation.
• Solvency Concerns: The negative net assets and shareholders’ funds indicate that the company’s total liabilities surpass its total assets. This is akin to a patient with a weakened heart muscle—unable to support the company’s financial structure sustainably.
• Operational Scale: The company’s micro-scale size (one employee, low fixed assets) limits its ability to generate significant revenue or absorb financial shocks.
• Accumulated Losses: The worsening profit and loss reserve reflects ongoing or past losses that have eroded equity, similar to chronic illness without recovery.
• Recent Leadership Change: The appointment of a new director mid-2023 may indicate attempts at strategic or operational turnaround, but financial results to date show continued strain.

The company status is active with no overdue filings, which is a positive sign that governance and compliance are being maintained despite financial difficulties.

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4. Recommendations

To improve financial wellness and move towards a healthier financial state, the company should consider the following:

• Improve Cash Flow Management: Prioritize accelerating cash inflows and negotiating extended terms with creditors. Healthy cash flow is the lifeblood of business survival.
• Cost Control and Efficiency: Review operational costs critically; with only one employee, even small inefficiencies can be significant. Consider streamlining processes and reducing overheads.
• Capital Injection: Seek additional capital either from existing shareholders or external investors to strengthen the equity base and reduce insolvency risk.
• Strategic Review: Evaluate the business model and revenue streams to identify growth opportunities or pivot areas. The new director should lead a turnaround plan focusing on sustainable profitability.
• Debt Restructuring: Engage with creditors to restructure or defer short-term liabilities to ease liquidity pressure.
• Regular Financial Monitoring: Implement rigorous monthly financial reviews to detect early warning signs and take corrective action promptly.
• Seek Professional Advice: Consider consulting insolvency practitioners or financial advisors to explore options if liquidity issues persist.

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