Company Number: 13591267

Analysis Date: 2025-07-20 11:36 UTC

Financial Health Assessment of CHARGEFOX LIMITED

---

1. Financial Health Score: C

Explanation:
The company shows some concerning symptoms in its financial vital signs, particularly with recurring net current liabilities (negative working capital), which indicates liquidity stress. However, it maintains positive net assets and shareholder equity, suggesting the business is still solvent but under pressure. The overall profile reflects a borderline financial condition requiring attention to improve short-term liquidity and operational cash flow.

---

2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	12,000	14,350	Slight decrease; stable long-term asset base.
Current Assets	70,552	6,402	Large increase, possibly cash or receivables; however, may include non-liquid items.
Current Liabilities	76,395	11,770	Significant increase, creating pressure on short-term obligations.
Net Current Assets (Working Capital)	-5,843	-5,368	Negative working capital consistently; a symptom of liquidity stress—current liabilities exceed current assets.
Total Assets Less Current Liabilities	6,157	8,982	Decreasing trend; shows overall assets after paying short-term debts are shrinking.
Net Assets (Equity)	4,957	7,782	Declining equity base; erosion of net worth is a cautionary sign.
Shareholders Funds	4,957	7,782	Mirrors net assets, showing reduced retained capital.
Average Number of Employees	1	1	Micro entity with minimal workforce, limiting fixed overheads.

Interpretation:

• The persistent negative working capital ("symptom of distress") signals the company faces challenges in meeting its short-term financial commitments without relying on additional financing or asset liquidation.
• The sharp rise in current liabilities versus current assets in 2024 suggests increased payables or short-term borrowings.
• Declining net assets indicate that the company’s accumulated losses or withdrawals are weakening the financial "immune system."
• The fixed asset base remains modest and stable, consistent with a small operational scale.
• The company is classified as a micro-entity, limiting reporting complexity but also indicating a small size and scope.

---

3. Diagnosis: Financial Condition Assessment

CHARGEFOX LIMITED is currently in a fragile financial state. The company exhibits "symptoms" of liquidity strain due to negative working capital over multiple years and a substantial increase in current liabilities in the latest year. While still solvent with positive net assets, the erosion of shareholders’ funds and the declining total assets less current liabilities point to a weakening financial "immune system." The relatively stable fixed asset base offers limited collateral or capital buffer.

The business is likely reliant on external funding or deferred payments to maintain operations. Without intervention, the "condition" could worsen, risking insolvency if liabilities become due and cash inflows are insufficient.

---

4. Recommendations: Path to Financial Wellness

• Improve Liquidity Management:
  Prioritize reducing current liabilities or increasing liquid current assets. This may include negotiating extended payment terms with suppliers, accelerating receivables collection, or controlling operating expenses.

• Enhance Cash Flow Visibility:
  Implement robust cash flow forecasting to anticipate funding gaps and proactively manage working capital.

• Consider Short-Term Financing:
  Explore short-term credit facilities or shareholder loans to bridge liquidity gaps but use prudently to avoid excessive leverage.

• Cost Control & Efficiency:
  With a minimal employee base, focus on operational efficiency to improve margins and reduce reliance on external funding.

• Strategic Growth or Restructuring:
  If possible, increase revenue streams or restructure liabilities to improve balance sheet health. Monitor closely for early signs of distress.

• Maintain Compliance & Reporting:
  Ensure timely filing of accounts and returns to avoid penalties and maintain creditor confidence.

---