CLICK SWIIPE MARKETING LTD

Executive Summary

CLICK SWIIPE MARKETING LTD is currently exhibiting signs of financial distress, primarily due to severely limited cash availability and negative working capital. While the company has a positive net asset position, it has sharply declined over recent years, indicating accumulated losses. Immediate focus is needed on improving liquidity, managing costs, and strengthening the equity base to enhance financial resilience.

CLICK SWIIPE MARKETING LTD - Analysis Report

Company Number: 12790956

Analysis Date: 2025-07-20 14:57 UTC

Financial Health Assessment: CLICK SWIIPE MARKETING LTD

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1. Financial Health Score: D

Explanation:
The company exhibits symptoms of financial strain, particularly in liquidity and working capital management. While it maintains positive net assets, its cash reserves have almost depleted and current liabilities exceed current assets, indicating short-term distress. The financial trajectory over recent years shows a declining trend in working capital and net assets, warranting caution.

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2. Key Vital Signs

Metric	2023 (£)	Interpretation
Cash at bank	13	Critically low cash, signaling a near absence of readily available funds ("weak pulse").
Current Assets	1,220*	Reduced from prior year; primarily fixed assets and minimal current assets.
Current Liabilities	1,205	Almost equal to current assets but cash is negligible, indicating liquidity pressure.
Net Current Assets (Working Capital)	-1,192	Negative working capital ("symptom of distress") showing inability to cover short-term debts.
Net Assets (Equity)	15	Very thin equity base, down sharply from £87K in 2022 and £5,234K in 2020 ("shrinking reserves").
Share Capital	2	Nominal share capital, typical for small private companies.
Director’s Loan	1,101	Loan from director included in liabilities, indicating reliance on internal funding.
Employees	1	Very small operational scale.

*Note: Current assets in 2023 are primarily cash (£13) plus tangible fixed assets (£1,207), with no debtors reported.

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3. Diagnosis

Liquidity and Cash Flow:
The company shows a dangerously low cash balance (£13), indicating a "faint pulse" in liquidity. Current liabilities (£1,205) largely comprise taxes, social security, and director’s loans, which must be serviced imminently. Negative net current assets (-£1,192) reflect an inability to meet short-term obligations from current resources, a classic symptom of financial distress.

Asset and Equity Base:
Net assets have plummeted from £5,234K in 2020 to just £15 in 2023, marking a severe erosion of the company’s financial "immune system." This suggests accumulated losses or write-downs, weakening the company’s buffer against adverse events.

Operational Scale and Efficiency:
The company operates with a single employee and minimal turnover details reported, which may imply limited business activity or a startup phase with constrained revenues. Fixed assets have increased, indicating investment in equipment, but this is not translating into improved liquidity or profitability.

Capital Structure and Control:
Ownership is concentrated with one individual holding 75-100% shares and voting rights, suggesting centralized decision-making but also potential risk if the principal controller’s resources or confidence wane.

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4. Recommendations

1. Improve Cash Flow Management:

   • Prioritize collection of any outstanding receivables and negotiate payment terms with creditors to ease immediate cash pressures.
   • Consider short-term financing options or additional director loans if feasible and compliant with regulations.

2. Cost Control and Operational Efficiency:

   • Review operating expenses critically to reduce cash burn.
   • Explore increasing revenue streams, possibly leveraging marketing and IT consultancy SIC codes.

3. Balance Sheet Strengthening:

   • Address the erosion of net assets by halting losses and building reserves through profitable operations.
   • Consider capital injection from owners or external investors to bolster equity.

4. Financial Planning and Monitoring:

   • Implement regular financial reviews focusing on liquidity ratios and working capital trends to catch early signs of distress.
   • Engage professional advice to explore restructuring options if losses continue.

5. Governance and Transparency:

   • Maintain clear documentation of director loans and ensure compliance with tax and legal standards.
   • Prepare for timely filings and consider audit or review to enhance stakeholder confidence.

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