CASS ACCESS LIMITED

Executive Summary

CASS ACCESS LIMITED maintains positive equity but exhibits concerning signs of liquidity strain, reflected in negative working capital and a declining asset base. The reduction in workforce and modest asset shrinkage suggest operational adjustments that require careful management. Immediate focus on improving cash flows and operational capacity is essential to stabilize and strengthen financial health.

CASS ACCESS LIMITED - Analysis Report

Company Number: SC753676

Analysis Date: 2025-07-20 11:05 UTC

Financial Health Assessment Report for CASS ACCESS LIMITED

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1. Financial Health Score: C

Explanation:
The company shows signs of financial strain with liabilities exceeding current assets and a declining asset base, though it maintains positive shareholders' equity. The overall position reflects cautious optimism but highlights vulnerabilities, particularly in liquidity and working capital management.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	86,460	95,613	Slight decrease suggests modest asset utilization or disposals; stable but declining long-term asset base.
Current Assets	33,399	30,572	Small increase shows some growth in liquid and short-term assets.
Current Liabilities	68,857	82,462	Decrease in short-term obligations is positive but still high relative to current assets.
Net Current Assets (Working Capital)	-35,458	-51,890	Negative working capital indicates liquidity stress—unable to cover short-term debts with current assets.
Shareholders Funds (Equity)	51,002	43,723	Positive and growing equity base suggests retained earnings or capital infusion supporting solvency.
Average Employees	0 (down from 3)	3	Reduction to zero employees may reflect operational scaling down or outsourcing; potential risk to capacity.

Interpretation:

• Liquidity (Cash Flow Health): Negative working capital is a symptom of financial distress, implying the company may struggle to meet short-term obligations without additional financing or asset sales.
• Solvency: Positive shareholders' funds indicate the company remains solvent, with assets exceeding total liabilities. However, the narrowing asset base and increasing reliance on liabilities require attention.
• Asset Management: Slight decrease in fixed assets could be from disposals or depreciation outpacing reinvestment, potentially impacting operational capability.
• Operational Capacity: The drop in employee count to zero is notable, possibly indicating a shift in business model or temporary inactivity, which may impact revenue generation and cash inflows.

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3. Diagnosis

The financial "vitals" of CASS ACCESS LIMITED reveal a company in a precarious state resembling a patient with underlying chronic conditions but no immediate critical failure. The healthy equity base is like a strong heart supporting the business, but the negative working capital acts as a symptom of short-term distress akin to difficulty breathing—cash inflows are insufficient to cover immediate outflows.

The shrinking fixed assets and zero employees suggest the company might be scaling down or restructuring, which could be either a strategic maneuver or a symptom of operational difficulties. The director’s sole control and the micro-entity status imply a tightly held, small operation, possibly highly dependent on the principal’s involvement.

Overall, the company is solvent but faces liquidity challenges that require monitoring. Without corrective measures, these symptoms could worsen, leading to financial stress or insolvency risk.

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4. Recommendations

1. Improve Liquidity Management:

   • Enhance cash flow forecasting to anticipate shortfalls.
   • Negotiate extended payment terms with suppliers to reduce immediate liabilities.
   • Accelerate collection of receivables or consider invoice financing to boost current assets.

2. Reassess Operational Model:

   • Clarify the status of workforce reduction—if outsourcing or automation is in place, ensure it aligns with revenue goals.
   • Consider re-hiring or subcontracting strategically to maintain service capacity and revenue streams.

3. Asset Utilization:

   • Evaluate fixed asset base for underused or obsolete equipment—consider sale or upgrade to improve efficiency.
   • Invest cautiously in assets that directly contribute to revenue and cash generation.

4. Capital Injection or Financing:

   • If liquidity issues persist, explore options for additional equity investment or short-term credit facilities to shore up working capital.
   • Engage with financial advisors or lenders early to avoid distress scenarios.

5. Regular Financial Monitoring:

   • Implement monthly or quarterly reviews of financial statements to catch early warning signs and act proactively.
   • Maintain compliance with filing deadlines to avoid penalties that could exacerbate cash flow issues.

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