CFPROGRAM LIMITED

Executive Summary

CFPROGRAM LIMITED currently faces significant financial challenges characterized by negative net assets and severe liquidity constraints. The company’s working capital is deeply negative, signaling a cash flow crisis and operational contraction. Immediate actions to inject capital, control costs, and enhance revenue are critical to restore financial stability and avoid insolvency risks.

CFPROGRAM LIMITED - Analysis Report

Company Number: 13749186

Analysis Date: 2025-07-29 12:58 UTC

Financial Health Assessment for CFPROGRAM LIMITED

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1. Financial Health Score: D

Explanation:
CFPROGRAM LIMITED currently exhibits several concerning financial symptoms indicative of distress. The company’s net assets and shareholders’ funds are negative and worsening, indicating that liabilities exceed assets—a classic sign of financial imbalance. While it is a micro-entity with minimal filing requirements, its liquidity position is precarious with minimal current assets relative to current liabilities, signaling tight cash flow and working capital constraints. The score “D” reflects a fragile financial state requiring urgent attention to avoid further deterioration.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Current Assets	5	697	Critically low cash or receivables; almost no liquid resources
Current Liabilities	3,684	3,342	Short-term debts rising, putting pressure on liquidity
Net Current Assets	-3,679	-2,645	Negative working capital; symptoms of cash flow distress
Net Assets (Total Equity)	-4,529	-3,495	Negative equity; company owes more than it owns
Shareholders’ Funds	-4,529	-3,495	Reflects accumulated losses or capital erosion
Average Employees	0	1	No staff means limited operational scale or possible inactivity

Interpretation of Vital Signs:

• Healthy Cash Flow: The company lacks "healthy cash flow" as evidenced by negligible current assets (£5) and increasing current liabilities (£3,684), an alarming sign akin to a patient with dangerously low blood pressure—insufficient resources to meet immediate obligations.
• Negative Net Assets: The “net assets” figure is in the red and worsening, showing the company’s capital base is eroding. This resembles a patient’s vital organ function declining.
• Working Capital Deficit: Negative net current assets indicate the company cannot cover short-term debts from short-term assets, a critical liquidity symptom.
• Staffing: The drop to zero employees suggests operational downsizing or dormancy, which may limit revenue generation and cash inflow.

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3. Diagnosis

CFPROGRAM LIMITED is exhibiting clear symptoms of financial distress:

• Liquidity Crisis: The company’s current resources are insufficient to cover immediate liabilities, creating a “cash flow blockage” that jeopardizes ongoing operations.
• Capital Deficiency: Negative net assets show that accumulated losses or insufficient capital injections have impaired the company’s financial foundation, reducing resilience against shocks.
• Operational Contraction: With no employees currently, the company may have reduced operational activity or is potentially dormant in practice despite active status.
• Early Stage Business Challenges: Incorporated in late 2021, the company is still in its infancy but has yet to establish a stable financial footing or positive working capital, which is common but concerning if prolonged.

Overall, the company is in a fragile state, with high risk of insolvency if current trends continue. Immediate measures are needed to restore liquidity and rebuild equity.

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4. Recommendations

To improve financial wellness and restore health:

• Cash Flow Management:
  • Inject fresh working capital (owner loans or equity) to alleviate immediate liquidity shortfalls.
  • Tighten control over payables and receivables to improve the cash conversion cycle.
• Cost Control:
  • Review and minimize overheads, including fixed costs, to preserve cash.
  • Consider restructuring supplier terms or negotiating payment extensions.
• Revenue Generation:
  • Reactivate operational activities if dormant; explore new revenue streams related to physical well-being and sports activities aligned with SIC codes.
  • Leverage online retail capability (SIC 47910) to boost sales if applicable.
• Financial Monitoring:
  • Prepare detailed cash flow forecasts to anticipate and manage liquidity needs proactively.
  • Regularly review financial statements for early detection of distress symptoms.
• Seek Professional Advice:
  • Engage with insolvency practitioners or financial advisors early to explore turnaround options if cash injections are not feasible.
• Governance:
  • The sole director and significant controller (Maria Claudia Fabiano) should consider strengthening governance and oversight to improve accountability and decision-making.

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