CHANGING YOUR MIND LTD

Executive Summary

CHANGING YOUR MIND LTD shows significant financial distress with negative equity and a critical liquidity shortage, placing it at risk of insolvency. Immediate cash flow management and debt restructuring are essential to stabilize operations, while strategic capital injection and cost control will be vital for recovery. Without prompt action, the company may face severe operational challenges.

CHANGING YOUR MIND LTD - Analysis Report

Company Number: SC687069

Analysis Date: 2025-07-29 19:39 UTC

Financial Health Assessment for CHANGING YOUR MIND LTD

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1. Financial Health Score: D

Explanation:
The company exhibits pronounced financial distress, with significant negative equity and current liabilities far exceeding current assets. This indicates poor liquidity and solvency positions, suggesting an urgent need for financial restructuring or corrective action to avoid insolvency risks.

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2. Key Vital Signs

Metric	2025 (Latest)	Interpretation
Fixed Assets	£0	No long-term assets remain; possibly sold or written off, indicating reduced capital base.
Current Assets	£719	Very low liquid resources available to meet short-term obligations.
Current Liabilities	£41,350	High short-term debts creating immediate cash flow pressure ("symptom of distress").
Net Current Assets	-£40,631	Negative working capital — company cannot cover short-term liabilities with current assets.
Shareholders' Funds	-£41,255	Negative equity indicates accumulated losses exceed investment; shareholder funds eroded.
Cash Position	Not separately disclosed for 2025 but low current assets imply minimal cash on hand.
Account Category	Micro	Small scale, limited financial disclosures; less complex but vulnerable if financial health declines.

Interpretation:

• The company's negative net current assets and shareholders' funds are critical "vital signs" indicating financial instability.
• The absence of fixed assets suggests depletion of capital resources.
• The large current liabilities relative to current assets point to severe liquidity constraints, meaning the company may struggle to pay bills on time.
• Persistent negative equity signals ongoing losses or insufficient capital injections.

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3. Diagnosis

Underlying Financial Condition:
CHANGING YOUR MIND LTD is currently in a precarious financial state characterized by severe liquidity stress and negative net worth. The company's working capital deficit is a "symptom" of cash flow problems that can impede day-to-day operations. Negative shareholders’ funds highlight a history of losses or undercapitalisation that have eroded the company's financial foundation.

The trend from 2022 to 2025 shows worsening financial health:

• Shareholders’ funds deteriorated from -£4,734 in 2022 to -£41,255 in 2025.
• Current liabilities have increased fivefold from £8,058 to £41,350, while current assets remain negligible.

Without intervention, these symptoms could progress to insolvency, risking creditor action or forced liquidation.

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4. Recommendations

To restore financial wellness and avoid further deterioration, CHANGING YOUR MIND LTD should consider the following actions:

1. Immediate Cash Flow Management:

   • Conduct a cash flow forecast to identify urgent shortfalls.
   • Prioritize payments to critical creditors to prevent operational disruptions.
   • Explore short-term financing options (overdraft, invoice factoring) to alleviate liquidity crunch.

2. Debt Restructuring:

   • Negotiate with creditors to restructure or extend payment terms on current liabilities, reducing immediate pressure.
   • Consider formal agreements or mediation if informal negotiations stall.

3. Capital Injection:

   • Seek fresh equity investment or loans from shareholders or external investors to strengthen capital base and improve negative shareholders’ funds.

4. Cost Control and Revenue Enhancement:

   • Review operating expenses and reduce non-essential costs.
   • Enhance marketing and sales efforts to increase revenue streams aligned with company's education services.

5. Financial Monitoring and Reporting:

   • Implement robust financial controls and regular reporting to detect early warning signs.
   • Engage financial advisory support to guide turnaround strategies.

6. Strategic Review:

   • Evaluate business model viability given current market conditions.
   • Consider pivoting services or partnerships to improve competitive positioning and cash generation.

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Medical Analogy Summary

Currently, CHANGING YOUR MIND LTD is exhibiting symptoms of financial distress analogous to a patient with severe dehydration and organ strain—the body (business) lacks sufficient liquidity (fluid) and capital (nutrients) to sustain normal functions. Without rapid intervention (treatment), there is a high risk of systemic failure (insolvency). Immediate supportive care (cash flow management) combined with long-term rehabilitation (capital restructuring and strategic realignment) is essential to restore health.

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