CANTIUM CONSULTING LIMITED

Executive Summary

Cantium Consulting Limited is currently facing financial distress, marked by negative net assets and working capital deficits indicating liquidity challenges. Immediate focus on improving cash flow and restructuring liabilities is essential to stabilize finances. Without corrective action, the company risks deeper financial impairment.

CANTIUM CONSULTING LIMITED - Analysis Report

Company Number: 12501431

Analysis Date: 2025-07-29 12:08 UTC

Financial Health Assessment: CANTIUM CONSULTING LIMITED (as of 31 March 2024)

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1. Financial Health Score: D

Explanation:
The company shows clear symptoms of financial distress, including negative net assets and worsening working capital. While not yet insolvent, the financial "vital signs" reveal a weakening balance sheet and liquidity constraints. This grade reflects a need for urgent corrective action to avoid further deterioration.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£16,328	Declining but still present; some long-term resources remain.
Current Assets	£3,294	Severely reduced, indicating limited liquid resources.
Current Liabilities	£22,311	High short-term debts, a burden on cash flow.
Net Current Assets (Working Capital)	£-19,017	Negative, indicating inability to cover short-term obligations – a "cash flow problem."
Total Assets Less Current Liabilities	£-2,689	Negative, showing liabilities exceed assets after adjusting for short-term debts.
Net Assets / Shareholders' Funds	£-4,464	Negative equity, a critical symptom of financial distress or "balance sheet illness."
Share Capital	£1.00	Nominal share capital, providing minimal equity cushion.

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3. Diagnosis

Cantium Consulting Limited exhibits several "symptoms of distress":

• Negative Net Assets: The company's liabilities exceed its assets, indicating it is "underwater" financially.
• Negative Working Capital: Current liabilities substantially outweigh current assets, suggesting liquidity risk and potential difficulty meeting short-term obligations.
• Declining Fixed Assets: A reduction in fixed assets over recent years may reflect asset sales or depreciation, possibly to generate cash.
• No Staff Employed: The company reported zero employees, which may reflect a low operational capacity or reliance on subcontractors or the director alone.
• Micro Entity Reporting: The company uses micro-entity reporting, limiting detailed disclosure, which reduces transparency but is typical for very small companies.

These signs collectively indicate that the company is struggling to maintain financial stability, with an increasing risk of insolvency if the negative trends continue. The director's report and accounts do not show profit and loss statements, but the balance sheet trends suggest operational challenges affecting financial health.

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4. Recommendations

Immediate Actions:

• Improve Liquidity: Seek to increase current assets—particularly cash—through better receivables management, accelerated invoicing, or short-term financing to alleviate working capital strain.
• Cost Control: Review and reduce overheads and discretionary spending to preserve cash. Consider restructuring obligations with creditors to ease short-term pressure.
• Capital Injection: Explore options for equity infusion or director loans to restore positive net asset position, providing a financial "transfusion."
• Operational Review: Assess business model viability and consider strategic pivots or expansion into higher-margin services to improve profitability and cash flow.
• Financial Monitoring: Implement regular financial health checks with clear KPIs to detect early warning signs and manage risks proactively.

Long-Term Strategy:

• Rebuild equity base through retained earnings or external investment.
• Strengthen financial controls and forecasting to maintain healthy cash flow levels.
• Consider engaging a financial advisor or restructuring expert if insolvency risks persist.

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