BUNDLECORP LIMITED

Executive Summary

BUNDLECORP LIMITED is currently experiencing significant financial strain, primarily evidenced by a highly negative net asset position and liquidity challenges. While the company is operational with a stable workforce, urgent action to manage cash flow, restructure debt, and control costs is necessary to restore financial health and secure its future viability.

BUNDLECORP LIMITED - Analysis Report

Company Number: 13100694

Analysis Date: 2025-07-20 13:49 UTC

Financial Health Assessment for BUNDLECORP LIMITED

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1. Financial Health Score: D

Explanation:
The company's financial health exhibits significant signs of distress primarily due to a highly negative net asset position driven by substantial long-term liabilities exceeding current assets. While there is some positive shareholder equity reported, it conflicts with the balance sheet presentation and suggests financial strain. The business requires urgent attention to improve liquidity and reduce debt burdens to avoid further decline.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	0	No long-term tangible or intangible assets; potentially limited investment in capital resources.
Current Assets	18,941	Cash or receivables available to meet short-term obligations; relatively low but positive.
Current Liabilities	203,460	Debts due within one year; very high compared to current assets indicating liquidity stress.
Net Current Assets	-184,519	(Current Assets - Current Liabilities) Negative value suggests inability to cover short-term debts.
Creditors due after one year	None reported	No long-term creditors listed separately; however, total liabilities appear very high.
Net Assets (Total Equity)	-184,519	Negative net assets imply liabilities exceed assets, a critical sign of financial distress.
Share Capital	100	Minimal share capital, typical for micro-entities but offers limited buffer against losses.
Average Employees	2	Small workforce consistent with micro-entity status.

Note: There is a discrepancy in the reported net assets and shareholders’ funds between different sections. The balance sheet shows negative net assets (-£184,519), while summary figures show positive net assets (£184,519). The balance sheet figure is likely correct given the liabilities exceeding assets.

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3. Diagnosis: Symptoms of Financial Distress

• Liquidity Crunch: The company has a severely negative net current asset position (-£184,519), meaning current liabilities vastly exceed current assets. This is analogous to a patient with "poor blood circulation" — insufficient liquid resources to meet immediate obligations, risking default.

• Over-Leveraged Balance Sheet: With creditors (liabilities) outweighing assets, the company is "carrying a heavy burden," akin to a patient with excess weight stressing their heart. This level of debt can limit operational flexibility and growth potential.

• No Fixed Assets: The absence of fixed assets may indicate the company is service or software-based (consistent with SIC code 62012: business and domestic software development), but also means limited collateral for borrowing.

• Stable Workforce: The consistent employee count (2) suggests operational stability but also indicates a small scale, limiting revenue base.

• No Overdue Filings: The company is compliant with statutory filings, which is a positive sign of governance and legal health.

Overall, the company is showing "symptoms of financial strain" that could lead to insolvency if not addressed.

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4. Recommendations: Treatment Plan for Financial Wellness

1. Urgent Cash Flow Management:

   • Improve collection of receivables and manage payables to enhance liquidity.
   • Consider short-term financing options such as invoice factoring or overdrafts to bridge cash gaps.

2. Debt Restructuring:

   • Negotiate with creditors to extend payment terms or reduce liabilities to alleviate the negative net asset situation.
   • Explore equity injections or convert some debt to equity if possible.

3. Cost Control and Efficiency:

   • Review operational expenses closely to reduce overheads and preserve cash.
   • Leverage the small team for maximum productivity and possibly outsource non-core activities.

4. Asset and Revenue Growth:

   • Invest strategically in intangible assets such as proprietary software or intellectual property to build long-term value.
   • Explore new business streams or market segments to increase turnover.

5. Financial Monitoring:

   • Establish regular internal financial health checks to catch early warning signs.
   • Seek financial advisory support for ongoing diagnostics and strategic planning.

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