C SERVE HOLDINGS LIMITED
Executive Summary
C SERVE HOLDINGS LIMITED holds strong fixed assets but faces severe liquidity challenges, with current liabilities nearly equal to asset value and almost no cash on hand. The company’s financial condition is fragile, exhibiting symptoms of distress primarily due to negative working capital and negligible equity. Immediate actions to improve cash flow, restructure liabilities, and strengthen equity are essential to stabilize and improve financial health.
View Full Analysis Report →Company Analysis
This analysis is opinion only and should not be interpreted as financial advice.
C SERVE HOLDINGS LIMITED - Analysis Report
Financial Health Assessment for C SERVE HOLDINGS LIMITED (as of 31 January 2024)
1. Financial Health Score: Grade D
Explanation:
The company exhibits a concerning financial profile characterized by extremely tight liquidity and minimal net equity, despite holding significant fixed assets. The current liabilities nearly equal the value of fixed assets, leaving almost no working capital or cash buffer. This situation signals symptoms consistent with financial distress, warranting close monitoring and remedial action.
2. Key Vital Signs
Metric | Value | Interpretation |
---|---|---|
Fixed Assets | £410,002 | Strong asset base in tangible fixed assets (land/buildings) |
Cash & Cash Equivalents | £1 | Critically low cash reserves, indicative of poor liquidity |
Current Liabilities | £410,000 | Very high short-term obligations matching asset value |
Net Current Assets (Working Capital) | -£409,999 | Severe working capital deficit; liabilities exceed current assets |
Net Assets (Total Assets less Current Liabilities) | £3 | Almost zero net worth; equity is negligible |
Share Capital | £3 | Minimal equity investment |
Employees | 1 | Micro-sized operation, potentially limiting operational capacity |
Company Size Category | Micro | Small company with limited filing and operational scale |
Company Status | Active | Currently operating |
Interpretation:
- The company's "heart" (cash flow) is virtually non-existent, with just £1 in cash against £410,000 in current liabilities. This represents a dangerous liquidity crunch, akin to a patient with severely low blood pressure risking organ failure.
- Fixed assets provide some stability but are illiquid, meaning the company cannot readily convert them to cash to meet short-term demands.
- The negative working capital is a clear symptom of financial strain, suggesting the company may struggle to meet immediate obligations without additional funding or asset liquidation.
- The negligible net assets indicate the company is running on a very thin equity margin, limiting its ability to absorb losses or invest in growth.
3. Diagnosis
The financial "symptoms" indicate C SERVE HOLDINGS LIMITED is in a fragile financial state primarily due to liquidity constraints. Although the company holds significant tangible fixed assets (land and buildings valued at £410,000), these are not easily converted into cash to cover pressing liabilities totaling the same amount. The current liabilities wipe out available liquid assets, resulting in a critical working capital deficiency (-£409,999).
This financial condition resembles a patient with a strong skeletal frame (fixed assets) but lacking blood flow (cash) to sustain vital functions. The company’s survival depends heavily on cash inflows, refinancing, or asset restructuring, as its present cash "heartbeat" is nearly absent.
Additionally, the minimal shareholder capital (£3) and single-employee structure suggest limited operational scale and potential constraints on generating revenue to improve liquidity.
4. Recommendations
To improve the financial wellness of C SERVE HOLDINGS LIMITED, consider the following "treatment plan":
Immediate Actions:
Inject Liquidity:
Secure short-term financing or shareholder loans to boost cash reserves and cover current liabilities, stabilizing the company's "circulatory system."Renegotiate Creditors Terms:
Engage with creditors to extend payment terms or restructure liabilities, easing pressure on immediate cash outflows.Asset Utilization Review:
Assess the possibility of leveraging the fixed assets—such as refinancing the property or selling non-essential assets—to generate cash.Cost Control & Revenue Generation:
Implement strict cost management and explore avenues to increase operational income to improve cash flows.
Medium to Long Term Actions:
Strengthen Equity Base:
Consider raising additional equity capital to build a stronger financial foundation and enhance net assets.Operational Expansion or Diversification:
Evaluate strategic growth or diversification to increase revenue streams and reduce reliance on fixed assets.Financial Monitoring:
Establish regular financial health check-ups to detect early symptoms of distress and adjust strategy promptly.
More Company Information
Recently Viewed
Follow Company
- Receive an alert email on changes to financial status
- Early indications of liquidity problems
- Warns when company reporting is overdue
- Free service, no spam emails Follow this company