CLICK N COLLECT DISTRIBUTION LTD

Executive Summary

CLICK N COLLECT DISTRIBUTION LTD shows persistent financial distress, with negative net assets and insufficient liquidity to cover liabilities. The company lacks operational scale and current assets, signaling urgent need for strategic financial interventions. Immediate actions to improve cash flow, restructure debt, and possibly inject capital are essential to avoid insolvency risk.

CLICK N COLLECT DISTRIBUTION LTD - Analysis Report

Company Number: 12824234

Analysis Date: 2025-07-20 16:08 UTC

Financial Health Assessment for CLICK N COLLECT DISTRIBUTION LTD

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1. Financial Health Score: D

Explanation:
The company’s financial metrics reveal significant distress signals, primarily a persistent negative net asset position (net liabilities) over multiple years. This indicates that the company owes more than it owns, which is a serious warning sign. The lack of employees and minimal current assets further compound liquidity concerns. Though the company is still active and compliant with filing deadlines, the financial "vital signs" suggest it is not currently in a healthy state.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Current Assets	10	Extremely low cash or short-term assets; insufficient to cover liabilities.
Current Liabilities	5,159	Short-term obligations that greatly exceed current assets, indicating potential liquidity issues.
Net Current Assets	-5,149	Negative working capital, a "symptom of distress" indicating inability to meet short-term debts.
Total Net Assets (Equity)	-5,149	Negative net worth; company has more liabilities than assets, a critical red flag.
Share Capital	10	Minimal share capital, typical of micro-entities but insufficient to buffer losses.
Average Employees	0	No employees, suggesting the company may be dormant operationally or reliant on external services.

Additional Observations:

• The company has maintained these negative net asset levels consistently for at least 4 years, showing no improvement trend.
• The sole director and significant controller holds 75-100% ownership, implying centralized control but no diversification of management.
• The company operates in SIC code 56290 (Other food services), a sector typically requiring working capital for inventory and operations, yet the company’s balance sheet shows negligible current assets.

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3. Diagnosis

Underlying Business Health:
The company exhibits chronic financial distress, as evidenced by persistent negative net assets and negative working capital. These "symptoms" suggest that the company is struggling to fund its day-to-day operations and meet its short-term obligations without external support or additional financing. The lack of employees and minimal assets further point to either a very small-scale operation or a company not actively trading.

The financial data does not show any signs of recovery or healthy cash flow. The consistent negative equity indicates the company may be relying on creditor funding or director loans that are not reflected as equity injections. Without operational activity or increased assets, the company risks insolvency or forced restructuring if creditors demand payment.

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4. Recommendations

1. Immediate Liquidity Review:
   Conduct a detailed cash flow analysis to identify funding gaps. Explore options for short-term financing or director loans to stabilize liquidity.

2. Operational Assessment:
   Evaluate whether the company is trading or dormant. If active, review business model viability and cost structures to reduce liabilities.

3. Capital Injection:
   Consider increasing share capital or securing external investment to improve the equity base and strengthen the balance sheet.

4. Debt Restructuring:
   Engage with creditors to renegotiate payment terms to manage current liabilities more sustainably.

5. Strategic Review:
   Assess long-term business prospects in the "Other food services" sector. If the current model is unsustainable, explore pivoting or winding down operations in an orderly manner.

6. Compliance and Monitoring:
   Continue timely filings to avoid penalties and maintain legal good standing. Implement regular financial health checks to detect worsening symptoms early.

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