BOBLDOBL LIMITED

Executive Summary

BOBLDOBL LIMITED is currently in a fragile financial state marked by significant net liabilities and poor liquidity, sustained by director loans. Immediate focus on improving cash flow, controlling costs, and enhancing revenue is essential to avoid insolvency. With timely intervention, the company may stabilize and recover financial health.

BOBLDOBL LIMITED - Analysis Report

Company Number: 13921053

Analysis Date: 2025-07-29 12:17 UTC

Financial Health Assessment of BOBLDOBL LIMITED

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1. Financial Health Score: D

Explanation:
BOBLDOBL LIMITED exhibits significant financial distress characterized by persistent and deepening net liabilities, negative working capital, and reliance on director loans to sustain operations. While the company remains active and compliant with filing deadlines, the financial "vital signs" indicate unhealthy liquidity and solvency positions. The company’s financial condition is fragile, and without corrective measures, the prognosis remains poor.

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2. Key Vital Signs

Metric	2023-02-28 (£)	2024-02-29 (£)	Interpretation
Fixed Assets	674	483	Low asset base, mostly intangible and computer equipment; declining slightly
Current Assets	1,159	96	Sharp drop primarily in debtors and cash; indicates reduced short-term resources
Cash	5	96	Slight increase but still critically low; cash is "weak pulse" of the business
Debtors	1,154	0	Debtors fully disappeared; may indicate collection or sales issues
Current Liabilities	8,050	19,461	More than doubled, driven by VAT, director loans, and other creditors; heavy short-term debts
Net Current Assets	-6,891	-19,365	Significantly negative working capital; "symptom of liquidity distress"
Net Assets (Equity)	-6,217	-18,882	Deepening net liabilities; indicates erosion of shareholder funds and accumulated losses
Shareholders’ Funds	-6,218	-18,883	Mirrors net assets; negative equity signals insolvency risk
Loans from Directors	0	10,889	Director loans introduced to sustain the business; indicates external support but also risk
Employees	1	1	Very small workforce; limited operational scale

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3. Diagnosis: Underlying Business Health

BOBLDOBL LIMITED shows clear "symptoms of financial distress." The company is operating with:

• Severe liquidity constraints: Negative net current assets of almost £20k means the company cannot cover short-term obligations with its available current assets, especially cash.
• Deepening net liabilities: Shareholders’ funds have worsened from -£6.2k to -£18.9k within a year, showing accumulated losses or write-downs.
• Reliance on director loans: The introduction of nearly £11k loans from directors underscores that external cash inflows (from operations or financing) are insufficient.
• Operating scale: With only one employee and minimal fixed assets, the business is very small and possibly in a nascent or struggling phase.
• No audit requirement: Being a small company exempt from audit reduces external scrutiny but also limits assurance on financial health.
• Going concern note: The directors state that going concern remains appropriate due to financial support, but this is a warning sign for sustainability without continued backing.
• Declining debtor balances: The disappearance of debtors may suggest reduced sales or improved collections, but combined with falling current assets, it likely points to reduced business activity.

Overall, the company is showing "symptoms of distress" that require urgent intervention to prevent insolvency.

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4. Recommendations: Path to Financial Wellness

1. Improve Liquidity Management:

   • Accelerate cash collections and negotiate extended payment terms with suppliers to ease short-term pressure.
   • Consider short-term financing solutions or factoring to bridge cash flow gaps.

2. Restructure Debt and Director Loans:

   • Formalize repayment plans for director loans to avoid informal credit risk.
   • Explore restructuring options if creditors become pressing.

3. Cost Control and Operational Efficiency:

   • Given the very small scale, carefully monitor operating expenses.
   • Identify non-essential costs to reduce burn rate.

4. Revenue Growth Strategies:

   • Actively pursue new contracts or clients to boost turnover and rebuild debtor balances.
   • Leverage the company’s IT services focus (SIC 62090) to tap into growing digital demands.

5. Regular Financial Monitoring:

   • Implement a rolling cash flow forecast to detect liquidity issues early.
   • Prepare monthly management accounts with key ratios for timely decision-making.

6. Seek Professional Advice:

   • Engage a turnaround specialist or financial advisor to assist with restructuring and strategic planning.
   • Consider early engagement with insolvency practitioners if financial recovery stalls.

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Medical Analogy Summary

BOBLDOBL LIMITED’s financial state resembles a patient with critically low blood pressure (cash) and compromised organ function (net assets), sustained only by life support (director loans). Without intervention to restore healthy circulation (cash flow) and rebuild strength (equity), the prognosis is guarded.

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