CAD PLANET LTD

Executive Summary

CAD PLANET LTD is currently in a financially distressed state with negative net assets and working capital, signaling insolvency risks. While compliance with filing requirements is maintained, urgent action is required to inject capital and improve liquidity to avoid business failure. A strategic operational and financial review is essential to restore financial health.

CAD PLANET LTD - Analysis Report

Company Number: 13254032

Analysis Date: 2025-07-19 12:21 UTC

Financial Health Assessment for CAD PLANET LTD

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1. Financial Health Score: D

Explanation:
The company currently shows a negative net asset position of £(5,690), indicating that its total liabilities exceed its assets. This is a critical warning sign—akin to a patient showing symptoms of distress in vital organs. While the company remains active, its balance sheet reveals signs of financial strain, suggesting that immediate attention is required to avoid further deterioration.

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2. Key Vital Signs:

Metric	Latest Value (30 Sep 2024)	Interpretation
Net Assets	£(5,690)	Negative net assets mean liabilities surpass assets, indicating insolvency on a balance sheet basis.
Current Liabilities	£5,690	Debts due within one year; company must have sufficient liquid assets or cash flow to cover these.
Net Current Assets	£(5,690)	Negative working capital signifies potential liquidity issues—difficulty in meeting short-term obligations.
Shareholders’ Funds	£(5,690)	Reflects accumulated losses or undercapitalisation; shareholders’ equity is effectively wiped out.
Fixed Assets	Not reported in latest year	Absence or write-down of fixed assets reduces collateral and company’s ability to generate future income.
Employee Count	0	No employees reported; possibly a dormant or minimal operational business model, limiting revenue generation.
Account Category	Micro	Small size limits complexity but also resources and capital access.
Filing Status	Up-to-date	Compliance with filing deadlines is a positive sign of administrative health.

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3. Diagnosis:

The financial "symptoms" of CAD PLANET LTD reveal a company in a precarious state. The negative net assets and net current assets indicate that the company’s financial “heart” is struggling to pump sufficient resources to meet its short-term liabilities. Negative shareholders’ funds confirm that the company is insolvent on a balance sheet basis.

Historically, the company had modest fixed assets and positive working capital, but recent statements show those have diminished or disappeared. This shift suggests possible asset disposals or write-downs, which might have been necessary to meet liabilities or due to business contraction.

The absence of employees points to minimal operational activity or an early-stage business without expansion. Without active revenue-generating assets or workforce, the company’s capacity to reverse its financial distress is limited.

Despite these red flags, the company remains compliant with statutory filing requirements, which is a positive “vital sign” indicating responsible governance.

Overall, CAD PLANET LTD is exhibiting classic symptoms of financial distress: negative equity, potential liquidity constraints, and a shrinking asset base. Without intervention, it risks worsening insolvency or forced liquidation.

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4. Recommendations:

• Immediate Capital Injection: Like administering emergency fluids or medication to stabilize a patient, the company needs fresh capital from shareholders or external investors to restore positive equity and working capital.

• Liquidity Management: Increase liquid assets or reduce current liabilities to improve net current assets. This can be done by negotiating longer payment terms with creditors or accelerating receivables if any exist.

• Operational Review: Assess the business model for viability. If trading is minimal or halted, consider restructuring, pivoting operations, or merging with a healthier entity.

• Asset Utilization: Evaluate fixed asset base and consider if any underutilized or non-core assets can be sold to improve cash flow.

• Regular Financial Monitoring: Implement monthly cash flow forecasts and financial reviews to detect early symptoms of distress and act timely.

• Professional Advice: Engage insolvency practitioners or financial advisors to explore rescue options like Company Voluntary Arrangements (CVAs) or restructuring plans if necessary.

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