CORE DUMP CONSULTING LTD

Executive Summary

CORE DUMP CONSULTING LTD is currently facing significant financial challenges, with severe liquidity issues and negative net assets indicating ongoing losses and financial distress. Immediate cash flow management and capital injection are critical to stabilizing the company’s financial health and preventing insolvency risk. A strategic review and cost control are also recommended to improve future resilience.

CORE DUMP CONSULTING LTD - Analysis Report

Company Number: 12927321

Analysis Date: 2025-07-20 14:17 UTC

Financial Health Assessment of CORE DUMP CONSULTING LTD

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1. Financial Health Score: D

Explanation:
The company is currently showing significant signs of financial distress, with consistently negative net assets and working capital over multiple years. The negative equity position deteriorated sharply in the most recent year, indicating underlying financial challenges. While the company remains active and compliant with filings, its financial "vital signs" point to poor health without clear signs of recovery.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Fixed Assets	19,630	30,351	Tangible/long-term assets reduced - potential asset disposals or depreciation.
Current Assets	954	8,533	Very low current assets, indicating limited cash or liquid resources.
Current Liabilities	59,215	44,504	High short-term debts increasing year-on-year - liquidity risk.
Net Current Assets (Working Capital)	-58,261	-35,944	Severe negative working capital; company cannot cover short-term debts with current assets.
Net Assets (Equity)	-38,631	-5,593	Negative equity worsening, indicating accumulated losses and potential insolvency risk.
Share Capital	1.00	1.00	Minimal equity investment from shareholders.

Interpretation of Vital Signs:

• "Weak pulse" in liquidity: The company is unable to meet its short-term obligations with its available liquid assets, which is a critical symptom of financial distress.
• "Declining strength" in asset base: Fixed assets have decreased, possibly through sales or impairment, reducing collateral or resource base.
• "Negative equity" indicates accumulated losses: The company’s liabilities exceed its assets by a significant margin, a worrying sign akin to an unhealthy organ struggling to function.

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3. Diagnosis

CORE DUMP CONSULTING LTD presents multiple symptoms of financial distress:

• Liquidity Strain: The large negative working capital means the company likely faces difficulties paying suppliers and creditors in a timely manner. This is a classic symptom of cash flow problems.
• Balance Sheet Weakness: Negative net assets indicate the company has been consuming capital without generating sufficient profits or new equity injections to offset losses.
• No Employees: With zero employees reported in 2023, operational capacity may be limited, potentially constraining revenue generation.
• Micro-entity Status: While this simplifies reporting, it also means the company may lack scale or diversified income streams.
• Single Director/Owner: The control is centralized, potentially limiting external oversight or access to additional capital.

Overall, the company is in poor financial health and may be at risk of insolvency if current trends continue. The absence of audit and limited disclosures limit insight into profit and loss performance but the balance sheet alone signals a critical need for intervention.

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4. Recommendations

To improve CORE DUMP CONSULTING LTD’s financial wellness, consider the following steps:

1. Urgent Cash Flow Management:

   • Prioritize collection of receivables and negotiate extended payment terms with creditors to ease cash pressure.
   • Explore short-term financing options or overdraft facilities as a "financial oxygen" to meet immediate obligations.

2. Capital Injection:

   • The sole shareholder should consider injecting new equity capital to restore positive net assets and improve creditor confidence.
   • Alternatively, seek external investors or loans with manageable repayment terms.

3. Cost Rationalization:

   • Review all operational costs and fixed overheads. The zero employee count suggests minimal payroll, but other expenses should be scrutinized.
   • Consider if fixed asset disposals were strategic or distress sales; plan to stabilize asset base.

4. Strategic Business Review:

   • Evaluate core business activities and market strategy to identify revenue growth opportunities or diversification to improve income streams.
   • Assess whether the company’s IT consultancy services align with market demand and competitive positioning.

5. Professional Financial Advice:

   • Engage a financial advisor or insolvency practitioner for a structured turnaround plan before financial distress worsens.
   • Consider preparing management accounts regularly to monitor financial health more closely.

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Medical Analogy Summary:
CORE DUMP CONSULTING LTD exhibits "symptoms of severe financial distress" with "critical liquidity deficiency" and "negative equity syndrome." Without immediate "medical intervention" in the form of cash flow management and capital infusion, the "patient" risks progressing towards insolvency, akin to organ failure in a living system.

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