C&C ADVERTISING SERVICES LTD

Executive Summary

C&C ADVERTISING SERVICES LTD is currently facing liquidity challenges and a declining asset base, reflected in its negative working capital and reduced net assets. While still solvent, the company's financial health is fragile, requiring focused efforts to stabilize cash flow and rebuild equity. Immediate attention to liquidity and capital strengthening is essential to improve its financial resilience and support future growth.

C&C ADVERTISING SERVICES LTD - Analysis Report

Company Number: 12483538

Analysis Date: 2025-07-20 19:16 UTC

Financial Health Assessment for C&C ADVERTISING SERVICES LTD

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress with declining net assets and negative net current assets in the latest year. While it remains solvent, the shrinking asset base and working capital issues suggest caution. The D grade reflects a fragile financial position that needs remedial action to restore healthy operations.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	339	Significant decline from £679 in 2023, indicating asset disposal or impairment.
Current Assets	733	Reduced from previous year, indicating less cash or receivables.
Current Liabilities	840	Stable but high relative to current assets; indicates short-term obligations exceed short-term resources.
Net Current Assets (Working Capital)	-107	Negative working capital is a "symptom of distress" suggesting liquidity issues.
Total Net Assets (Equity)	232	Declined from £680 in the prior year, indicating erosion of shareholder value.
Share Capital	1	Minimal share capital; company is likely relying on reserves or loans.
Average Employees	1	Very small scale operation consistent with Micro entity status.

Interpretation of Vital Signs:
The negative net current assets (working capital) acts like a "low pulse" warning, signaling potential liquidity problems—meaning the company may struggle to cover its short-term debts with available assets. The sharp decline in fixed assets and net assets indicates the company is shrinking its asset base, possibly selling off long-term assets or facing losses. This could restrict future operational capacity.

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3. Diagnosis

• Liquidity Stress: The company’s current liabilities exceed current assets by £107, indicating a liquidity crunch. This is akin to a patient showing low blood pressure—immediate attention is required to stabilize short-term obligations.
• Asset Base Erosion: The decrease in fixed assets and net assets suggests the company is either disposing of assets to manage cash flow or suffering losses. This may reduce the company’s operational "muscle".
• Small Scale Operation: With only one employee and minimal share capital, the company’s financial "immune system" is limited, making it vulnerable to shocks.
• Stable but Thin Capital: The company remains solvent but with a diminished equity cushion, the financial resilience is low.
• No Overdue Filings: Compliance-wise, the company is up to date, which is a positive sign indicating good administrative health.

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4. Recommendations

• Improve Liquidity: Focus on increasing current assets, particularly cash and receivables. This might involve accelerating collections, renegotiating payment terms with suppliers, or seeking short-term financing.
• Reassess Asset Utilization: Evaluate whether the disposal of fixed assets was strategic or forced. Consider reinvesting in productive assets to support revenue generation.
• Strengthen Capital Base: Consider a capital injection or retaining more earnings to rebuild shareholders' funds. This will provide a stronger buffer against financial shocks.
• Cost Management: With a one-person operation, overheads should be minimal, but continuous monitoring can help prevent further erosion.
• Business Development: Explore opportunities to grow revenue streams to improve profitability and cash flow.
• Regular Financial Monitoring: Establish routine financial reviews to catch early "symptoms of distress" and take corrective action promptly.

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