CHARIOTEER PEOPLE LTD

Executive Summary

CHARIOTEER PEOPLE LTD, a newly incorporated micro-entity, currently shows financial strain with negative net assets and liabilities exceeding current assets, indicating liquidity challenges. Immediate capital support and strict financial management are crucial to stabilize the company and improve its financial health. Without intervention, the company risks insolvency, but with proper measures, a turnaround is possible.

CHARIOTEER PEOPLE LTD - Analysis Report

Company Number: 15985570

Analysis Date: 2025-07-29 17:07 UTC

Financial Health Score: D

Explanation:
The company's financial health is currently strained, with net current liabilities and negative net assets indicating financial distress symptoms. While the business is in its infancy (incorporated less than a year ago), the balance sheet shows a deficit that needs urgent attention to prevent worsening financial condition.

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Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	7	Extremely low cash or short-term assets, indicating poor liquidity ("weak pulse").
Current Liabilities	450	Debts due within one year exceed assets by a significant margin ("high stress on short-term funds").
Net Current Assets	-443	Negative working capital, a "symptom of distress" showing inability to cover immediate obligations.
Total Net Assets	-443	Overall negative equity, indicating the company owes more than it owns ("unhealthy balance sheet").
Shareholders' Funds	-443	Negative owner's equity, reflecting accumulated losses or undercapitalisation at this startup stage.

Additional Observations:

• No employees during the period, indicating no operational activity or very early stage.
• Micro-entity status limits reporting detail but confirms small size and early stage.
• Director and sole significant controller is the same person, implying centralized control but also risk concentration.
• The company operates as a Private Limited by Guarantee, often non-profit or social enterprise style, which may explain net asset structure but still requires sustainable funding.

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Diagnosis

The company exhibits clear symptoms of financial distress at this very early stage. The negative net current assets and net liabilities suggest that it is not generating or holding sufficient resources to meet its short-term obligations. This "weak heart" in liquidity and solvency is concerning, especially for a startup, as it indicates potential challenges in maintaining operations without additional capital infusion or restructuring.

The absence of employees and minimal current assets suggest the company is either inactive operationally or in a preparatory phase without revenue inflows yet. The negative shareholders' funds imply the initial funding or guarantees have not covered initial costs or liabilities, which could be typical in early months but requires immediate attention.

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Prognosis

If the current financial pattern continues without intervention, the company risks severe liquidity problems that could lead to insolvency or forced liquidation ("critical health emergency"). However, given the company’s recent incorporation and micro-entity status, this may represent the initial setup phase before capital injection or revenue generation.

Improvement in cash flow, reduction in liabilities, or fresh funding ("financial resuscitation") will be essential for survival and growth. Without these, the prognosis is guarded to poor.

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Recommendations

1. Immediate Capital Injection:

   • Infuse additional funds or guarantees to restore positive net current assets and stabilize liquidity.
   • This is akin to providing a "transfusion" to restore healthy blood flow to the company.

2. Review and Control Expenses:

   • Minimise liabilities and operating costs during the startup phase to avoid exacerbating the negative net asset position.

3. Develop a Clear Business Plan:

   • Outline revenue generation strategies to improve cash inflows and enable hiring or operational scaling.

4. Regular Financial Monitoring:

   • Establish monthly cash flow forecasts and monitor working capital closely to detect early signs of distress.

5. Seek Professional Advice:

   • Consult financial advisors or accountants to structure funding and manage liabilities effectively.

6. Consider Alternative Funding Sources:

   • Grants, loans, or investor funding tailored to micro-entities or social enterprises could help stabilize finances.

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