CORE CLOUD GROUP LTD

Executive Summary

CORE CLOUD GROUP LTD is currently in a critical financial state, characterized by large operating losses, negative net assets, and severe liquidity shortfalls. Without urgent corrective actions such as capital infusion and cost control, the company risks insolvency. Immediate focus on cash flow management and strategic restructuring is vital for survival and future recovery.

CORE CLOUD GROUP LTD - Analysis Report

Company Number: 12789314

Analysis Date: 2025-07-20 16:37 UTC

Financial Health Assessment of CORE CLOUD GROUP LTD (as at 31 December 2023)

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1. Financial Health Score: Grade F (Critical Condition)

Explanation:
CORE CLOUD GROUP LTD exhibits severe financial distress indicators, reflected in substantial net liabilities, persistent operating losses, and extremely weak liquidity positions. The company's balance sheet shows a large deficit in shareholder funds and negative working capital, which are symptoms of critical financial illness. Without significant intervention, the prognosis is poor.

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2. Key Vital Signs (Critical Metrics and Interpretation)

Metric	2023 Value	Interpretation
Turnover (Revenue)	£21,008	Very low revenue for a company incorporated in 2020, indicating limited business activity.
Operating Loss	-£933,123	Heavy operating loss, showing expenses far exceed income — a symptom of financial distress.
Net Assets (Shareholders’ Funds)	-£1,742,628	Large negative net assets indicate insolvency on a balance sheet basis — “critical illness”.
Current Assets	£18,498	Extremely low current assets relative to liabilities, implying inability to meet short-term debts.
Current Liabilities	£1,963,470	Very high current liabilities, posing immediate liquidity risk — “heart failure” symptoms.
Net Current Assets (Working Capital)	-£1,944,972	Negative working capital signals inability to cover short-term obligations with liquid assets.
Fixed Assets (Intangible + Tangible)	£202,344	Significant fixed assets, mainly intangible, but these are illiquid and may not be easily monetised.
Cash at Bank	£13,643	Minimal cash reserves, insufficient to cover liabilities or operating costs.
Loss Trend	Increasing losses year-on-year	Losses have escalated over recent years, indicating worsening health and no recovery.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Severe Liquidity Crisis: The company's current liabilities vastly exceed current assets, leaving it unable to meet short-term obligations without external financing or asset sales.
• Balance Sheet Insolvency: Shareholders’ deficit of over £1.7 million indicates that liabilities far exceed assets, a critical sign of insolvency.
• Unsustainable Operating Model: The company’s operating expenses (£954k) dwarf its revenues (£21k), indicating a business model unable to generate sufficient income to sustain operations.
• Negative Equity and Working Capital Deficit: These “symptoms of distress” suggest that the company is unable to fund ongoing operations from internal resources.
• Reliance on Intangible Assets: Significant intangible assets may represent investments in software or intellectual property, but these are not easily liquidated in a crisis.
• Going Concern Uncertainty: Despite the auditor’s statement supporting going concern, the financial data strongly suggests risk unless there is a clear recovery plan or infusion of capital.
• Control and Governance: The company is controlled by Trust Payments Ltd with full voting rights and director appointment powers, which may affect decision-making flexibility.

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4. Prognosis: Future Financial Outlook

• Without immediate and substantial financial restructuring, such as capital injection, cost reduction, or debt renegotiation, the company faces a high risk of insolvency.
• The outlook is poor given the increasing losses and worsening net asset position.
• The company may need to explore turnaround strategies, including business model reassessment, operational efficiency improvements, or strategic partnerships.
• If current trends persist, the company risks entering formal insolvency procedures (administration or liquidation).

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5. Recommendations: Specific Actions to Improve Financial Wellness

• Urgent Cash Flow Management: Prioritize improving liquidity by negotiating with creditors for extended payment terms or debt restructuring.
• Capital Injection: Seek new equity investment or shareholder loans to bolster working capital and restore positive net assets.
• Cost Rationalization: Review and significantly reduce administrative and operating expenses to curb ongoing losses.
• Revenue Enhancement: Develop and implement strategies to increase turnover—possibly diversifying services or targeting new clients.
• Asset Monetization: Evaluate the possibility of selling or licensing intangible assets to generate cash.
• Regular Financial Monitoring: Implement rigorous cash flow forecasting and financial reporting to detect and address issues early.
• Governance Review: Ensure that directors and controlling stakeholders actively engage in financial recovery strategies.
• Consider Professional Advice: Engage turnaround specialists or insolvency practitioners early to explore options before crisis worsens.

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Medical Analogy Summary

The company’s financial statements reveal a business suffering from severe “financial heart failure” — with dangerously low liquidity (cash flow), “organ failure” in the form of huge losses and negative equity, and a “weak immune system” unable to withstand external shocks. Immediate “emergency intervention” through capital support and cost control is essential to prevent “collapse.”

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