CONBUR LTD

Executive Summary

CONBUR LTD is currently exhibiting financial distress, marked by negative net assets and liquidity challenges, despite stable fixed assets. Immediate actions to improve cash flow and restructure debt are vital to stabilize the business and restore financial health.

CONBUR LTD - Analysis Report

Company Number: 13556100

Analysis Date: 2025-07-29 18:27 UTC

Financial Health Assessment for CONBUR LTD (as at 31 August 2024)

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1. Financial Health Score: D

Explanation:
The company shows signs of financial strain, primarily due to a negative net asset position (liabilities exceeding assets by approximately £29,446). While it is a micro-entity with limited turnover and asset base, the persistent negative equity and relatively high long-term liabilities compared to assets warrant caution. The score "D" reflects a business with symptoms of financial distress but not yet in critical failure.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	178,729	Stable long-term asset base, indicating investment in property or equipment.
Current Assets	2,465	Very low liquid assets; cash and receivables are minimal, causing liquidity concerns.
Current Liabilities	133,957	High short-term obligations, significantly exceeding current assets—potential liquidity risk.
Net Current Assets (Working Capital)	-131,492*	Negative working capital (current assets minus current liabilities). There is a risk of cash flow difficulties. (*Note discrepancy in reported net current assets below; see detailed analysis.)
Total Assets Less Current Liabilities	104,511	Indicates fixed assets remain after settling short-term debts, which is a positive sign.
Creditors Due After One Year	133,957	Significant long-term debt, exceeding total assets, which is a serious concern for solvency.
Net Assets (Equity)	-29,446	Negative net assets indicate the company owes more than it owns—"symptom of financial distress."
Shareholders’ Funds	-29,446	Mirrors net assets, reflecting shareholders’ negative equity stake.

• Note on Net Current Assets: The accounts report net current assets as positive (£74,218), but the balance sheet figures suggest otherwise (current assets £2,465 minus current liabilities £133,957 = negative £131,492). This inconsistency indicates either a reporting anomaly or misclassification. Assuming the balance sheet figures are accurate, liquidity is severely strained.

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3. Diagnosis

CONBUR LTD is in a delicate financial condition. The persistent negative net assets over recent years suggest that the company’s liabilities outweigh its assets—a classic symptom of insolvency risk. The high level of creditors due in both the short and long term compared to its modest asset base points to financial stress.

Despite stable fixed assets (likely property or equipment related to its real estate letting activity), the company's liquidity appears critically low, with very limited current assets to meet debts due within a year. This "cash flow" symptom raises concerns about the company's ability to fund day-to-day operations without external support.

The company's status is active, and it is categorized as a micro-entity, which means it operates on a small scale but still needs to monitor these warning signs carefully.

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4. Recommendations

• Improve Liquidity: Immediate focus should be on increasing current assets (cash or receivables) or reducing current liabilities. This may involve negotiating longer payment terms with creditors or accelerating collection of receivables.

• Debt Restructuring: Given the high creditors due after one year exceeding assets, consider restructuring long-term debt to reduce financial burden and improve solvency.

• Equity Injection: An injection of capital from shareholders or external investors could help restore positive net assets and improve the balance sheet health.

• Cost Control: With only one employee and limited assets, tight control over operating expenses is essential to avoid worsening cash flow.

• Financial Monitoring: Regular financial reviews and cash flow forecasting are critical to detect further symptoms of distress early and take corrective action.

• Professional Advice: Engage with financial advisors or insolvency practitioners proactively to explore options before the situation deteriorates.

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Medical Analogy Summary

CONBUR LTD shows "symptoms of distress" such as negative equity ("organ failure" of net assets) and poor liquidity ("weak pulse" of cash flow). The "vital signs" point to a company struggling to sustain itself without intervention. Without timely treatment—liquidity improvement and debt management—the prognosis could worsen, leading to potential insolvency.

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