Company Number: 13122535

Analysis Date: 2025-07-20 14:10 UTC

Financial Health Assessment for CLM PR LTD (Financial Year Ending 31 January 2024)

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1. Financial Health Score: D

Explanation:
The company exhibits significant liquidity strain and working capital deficiency despite showing positive net assets due to intangible assets. The large current liabilities relative to minimal current assets suggest symptoms of financial distress, warranting concern. The financial position is precarious, resulting in a below-average grade.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Current Assets	£100	Extremely low liquidity; insufficient to cover short-term obligations.
Current Liabilities	£399,194	High short-term debts creating pressure on cash flow.
Net Current Assets (Working Capital)	-£399,094	Negative working capital; a "symptom of distress" indicating inability to meet immediate liabilities.
Total Assets Less Current Liabilities	£149,334	Positive but largely driven by intangible assets (goodwill).
Shareholders' Funds (Equity)	£149,334	Equity is positive, suggesting residual value after liabilities, but largely intangible.
Intangible Assets	£548,428	Significant portion of assets tied up in intangible fixed assets, which are less liquid.

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3. Diagnosis

• Liquidity and Working Capital: The company has a critically low cash position (£100) and virtually no current assets aside from cash. The current liabilities are nearly £400k, which poses a serious liquidity crisis. This negative working capital is a clear symptom of financial strain, akin to a patient with a dangerously low pulse—immediate attention needed.

• Asset Structure: A very large intangible asset base (£548k) dominates the balance sheet. While goodwill/intangible assets add to total net assets, they are not readily convertible to cash to cover liabilities, limiting their effectiveness in resolving liquidity issues.

• Profitability and Reserves: Retained earnings have increased from £105k to £149k, indicating some level of profitability or capital injection. However, the absence of an Income Statement limits visibility into operational performance.

• Company Age and Size: Incorporated in January 2021 and classified as a small company, this is a relatively new business that appears to be investing heavily in intangible assets, possibly through acquisition or development.

• Risk Factors: The company's inability to cover current liabilities with current assets is a major red flag, suggesting operational or financing challenges. Without improvement, the company risks insolvency or forced restructuring.

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4. Recommendations

• Improve Liquidity: Immediate focus should be on boosting cash reserves and reducing short-term liabilities. This may involve negotiating extended payment terms with creditors, refinancing debt, or seeking short-term financing.

• Asset Utilization: Evaluate the recoverability and strategic value of the intangible assets. Consider impairment testing or monetization strategies if intangible assets do not generate expected future benefits.

• Operational Review: Conduct a thorough review of operational cash flows and expenses to identify inefficiencies and reduce outflows.

• Financial Planning: Develop a robust cash flow forecast and working capital management plan to prevent liquidity crises.

• Stakeholder Communication: Transparent communication with creditors, investors, and directors about the financial position and recovery plans is critical to maintain trust and support.

• Seek Professional Advice: Given the negative working capital and liquidity issues, professional advice on restructuring or financial strategy may be prudent.

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