CASC PREPARE LIMITED
Executive Summary
CASC PREPARE LIMITED shows improved short-term liquidity but suffers from negative net assets and depleted fixed assets, indicating financial strain. The company must focus on strengthening its capital base, managing cash flow prudently, and controlling costs to achieve sustainable financial health. Immediate corrective actions can help restore stability and support future growth.
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This analysis is opinion only and should not be interpreted as financial advice.
CASC PREPARE LIMITED - Analysis Report
Financial Health Assessment: CASC PREPARE LIMITED
1. Financial Health Score: D
Explanation:
The company exhibits several warning signs in its financial vitality. Despite showing some recovery in working capital, the net liabilities and negative shareholder funds indicate financial distress. The limited asset base and fluctuating current assets and liabilities suggest fragile liquidity and operational challenges. These factors warrant a cautious outlook and targeted corrective measures.
2. Key Vital Signs
Metric | 2025 (£) | 2024 (£) | Interpretation |
---|---|---|---|
Fixed Assets | 0 | 160 | Reduction to zero fixed assets reduces long-term stability. |
Current Assets | 1,500 | 7,603 | Sharp decrease in liquid assets signals weakening cash reserves. |
Current Liabilities | 938 | 9,123 | Substantial reduction in short-term debts, indicating some relief. |
Net Current Assets (Working Capital) | 562 | -1,520 | Positive working capital in 2025, a "healthy cash flow" symptom. |
Accruals and Deferred Income | 1,605 | 661 | Increase suggests more income received in advance or accrued expenses, impacting liquidity. |
Net Assets (Shareholders Funds) | -1,043 | 239 | Shift from positive to negative net worth—a "symptom of distress." |
Interpretation of Vital Signs:
- Liquidity: Improvement in net current assets from negative in 2024 to positive in 2025 suggests better short-term liquidity management, a "healthy pulse" in terms of cash flow.
- Solvency: Negative net assets and shareholder funds in 2025 indicate that total liabilities exceed assets, a "symptom of financial strain" that threatens long-term sustainability.
- Asset Base: The disappearance of fixed assets weakens the company's foundation and may limit operational capacity or borrowing power.
- Working Capital: The reversal to positive working capital is encouraging but must be viewed cautiously given the small absolute amounts involved.
3. Diagnosis
CASC PREPARE LIMITED is showing signs of financial instability. The positive working capital in the latest year is a promising "vital sign" of improved liquidity, indicating the company can meet immediate obligations. However, the overall negative net assets reflect an underlying "financial illness" where liabilities outweigh assets, pointing to accumulated losses or capital erosion.
The drastic reduction in current assets and fixed assets from previous years signifies a depletion of resources, possibly to cover expenses or repay debts. The increased accruals and deferred income may hint at revenue recognition timing issues or accrued costs, which could mask underlying cash flow difficulties.
The company operates in the education sector (SIC 85590), a field often reliant on steady cash inflows and investment in intangible or physical assets. The near absence of fixed assets could limit growth and operational efficiency.
Directors are professionals in medical fields, which might mean the company is a side venture or service-related enterprise with limited operational scale, consistent with its micro-entity status.
4. Recommendations
To improve the financial wellness of CASC PREPARE LIMITED and mitigate the "symptoms of distress," the following actions are advised:
Strengthen Capital Base: Consider capital injection from shareholders or external investors to restore positive net assets and buffer against liabilities.
Enhance Asset Management: Reinvest in fixed assets if operationally justified to improve the company's productive capacity and borrowing potential.
Manage Cash Flow Vigilantly: Monitor and optimize working capital by accelerating receivables, controlling payables, and managing accruals/deferred income carefully.
Cost Control: Review operating expenses to prevent further erosion of equity and preserve cash reserves.
Financial Planning: Develop a robust budget and cash flow forecast to anticipate funding needs and avoid liquidity shortages.
Stakeholder Communication: Maintain transparent dialogue with stakeholders, including directors and shareholders, to align on financial strategy and expectations.
Consider Professional Advice: Engage with financial advisors or accountants specialized in micro-entities for tailored support and compliance assurance.
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