CLOUDPUSHUK LTD

Executive Summary

CLOUDPUSHUK LTD's financial health has significantly deteriorated in the latest financial year, showing negative working capital and net liabilities that indicate liquidity problems and potential solvency risks. Immediate actions to manage cash flow, control costs, and strengthen equity are essential to stabilize the company’s financial condition and support recovery. Without prompt intervention, the company faces an increased risk of financial distress.

CLOUDPUSHUK LTD - Analysis Report

Company Number: 13121903

Analysis Date: 2025-07-29 20:43 UTC

Financial Health Assessment for CLOUDPUSHUK LTD

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1. Financial Health Score: D

Explanation:
The company shows clear symptoms of financial distress in its latest financial year, notably a sharp shift from positive net assets to a significant net liability position. While prior years reflected healthy equity levels, the 2024 results reveal a troubling deterioration. This grade reflects a warning signal that the company’s financial vitality is compromised and requires urgent attention.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	10,153	Stable, indicating consistent investment in long-term assets.
Current Assets	271,392	Declined sharply from £407,268 in prior year, indicating reduced cash or receivables.
Current Liabilities	334,066	Increased significantly from £235,180, showing rising short-term debts.
Net Current Assets (Working Capital)	-58,232	Negative, indicating inability to cover short-term debts with current assets — a key symptom of liquidity distress.
Net Assets (Equity)	-48,079	Negative equity signals insolvency risk; shareholders’ funds are wiped out.
Share Capital	200	Minimal, typical for a micro entity but limits cushion for losses.
Average Employees	0	No employees, possibly indicating a lean operation or reliance on contractors.

Vital Signs Interpretation:
The company’s negative working capital and negative net assets are the primary “red flags.” These metrics are akin to a patient whose vital signs have deteriorated from a stable condition to distress, indicating the company may struggle to meet its short-term obligations and threatens its going concern status. The reduction in current assets combined with rising current liabilities exacerbates liquidity risk.

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3. Diagnosis

CLOUDPUSHUK LTD has transitioned from a financially stable position in 2023 with positive net assets (£186,683) to a state of financial distress in 2024 with net liabilities of £48,079. The key symptom is a negative working capital of £58,232, showing that the company does not have enough liquid assets to pay its immediate debts. This could be due to increased creditor balances, reduced cash inflows, or a combination of both.

The stability in fixed assets suggests no major disposals or impairments, but this is overshadowed by the deteriorating current asset position. The absence of employees suggests an operational setup that might rely on subcontractors or automated services, which could limit immediate cash burn but also restrict revenue growth.

This diagnosis signals a risk of insolvency if corrective measures are not taken promptly. The underlying cause may include poor cash flow management, increased payables, delayed receivables, or a decline in sales revenue that is not visible from the limited financial snapshot available.

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4. Recommendations

To improve financial wellness and reverse the symptoms of distress, the following actions are advised:

1. Immediate Cash Flow Review and Management:

   • Conduct a detailed cash flow analysis to identify timing mismatches between inflows and outflows.
   • Prioritize payments to avoid default and negotiate extended terms with suppliers where possible.

2. Cost Control and Expense Reduction:

   • Review all expenses and reduce non-essential costs.
   • Consider restructuring any outstanding debts or liabilities to improve short-term liquidity.

3. Enhance Revenue Generation:

   • Explore opportunities to increase sales or diversify client base in the IT and telecommunications sectors indicated by the SIC codes.
   • Accelerate debtor collections and consider incentives for early payments.

4. Equity Injection or Financing:

   • Seek additional capital from shareholders or external investors to restore positive equity and strengthen the balance sheet.
   • Consider short-term financing solutions such as overdrafts or invoice financing to manage liquidity crunch.

5. Financial Monitoring:

   • Implement regular financial health checks (monthly cash flow statements, budgeting) to detect early warning signs.
   • Engage professional advisory support if necessary to guide restructuring or turnaround plans.

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Medical Analogy Summary:

CLOUDPUSHUK LTD is currently in a state comparable to a patient who has moved from stable health to showing symptoms of acute distress — negative equity and working capital are analogous to a failing heart and lungs struggling to sustain life. Immediate intervention, including stabilizing liquidity and strengthening the capital base, is critical to avoid potential insolvency and restore financial vitality.

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