CRICFAN LIMITED

Executive Summary

CricFan Limited shows healthy short-term liquidity but is burdened by significant long-term debt, resulting in substantial negative equity and a distressed financial position. Immediate focus should be on restructuring liabilities and improving profitability to achieve sustainable financial health. With appropriate action, the company can stabilize and build a stronger financial foundation.

CRICFAN LIMITED - Analysis Report

Company Number: 14678383

Analysis Date: 2025-07-29 17:41 UTC

Financial Health Assessment of CricFan Limited

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1. Financial Health Score: D

Explanation: CricFan Limited’s financial health currently shows significant signs of distress. Despite positive net current assets indicating some short-term liquidity, the company carries a large long-term liability, resulting in substantial negative net assets and shareholders’ funds. This indicates a financial structure under strain, suggesting that urgent corrective measures are needed to restore balance and solvency.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	591	Minimal investment in long-term assets; typical for a startup or early-stage service company.
Current Assets	68,120	Healthy level of liquid assets and receivables to cover short-term obligations.
Current Liabilities	2,468 (creditors)	Very low short-term debt, indicating manageable immediate obligations.
Net Current Assets (Working Capital)	65,652	Positive and healthy cash flow indicator; company can meet short-term debts comfortably.
Creditors due after one year (Long-Term Liabilities)	474,990	Large long-term debt burden, potentially a loan or deferred payment; major financial strain.
Accruals and Deferred Income	24,711	Obligations or income recognition timing issues that add to liabilities.
Net Assets (Total Equity)	-433,458	Negative equity indicates liabilities exceed assets, a symptom of financial distress.
Shareholders’ Funds	-433,458	Reflects accumulated losses or debt exceeding capital, raising solvency concerns.
Employees	5	Small workforce, indicating a micro or small enterprise.

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3. Diagnosis: What the Financial Data Reveals

CricFan Limited is in its infancy stage, having been incorporated in early 2023, and classified as a micro-entity. The company shows a healthy short-term liquidity position—it has enough current assets to cover current liabilities comfortably, which is a positive sign akin to a patient with a strong pulse and stable blood pressure.

However, the large long-term liability (£474,990) is a critical symptom of financial distress, equivalent to a chronic condition that threatens the company’s viability. This is the dominant factor causing the company’s negative net assets (-£433,458), suggesting the company is technically insolvent on a balance sheet basis.

The negative equity indicates that the business has either taken on significant debt to finance its operations or has experienced losses beyond its initial capital injection. Without profit generation or capital injection, this condition may worsen, risking insolvency or creditor pressure.

The company currently employs five people, indicating it is operational but likely in a developmental or growth phase, possibly investing heavily in infrastructure or product development funded by debt.

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4. Recommendations: Steps to Improve Financial Wellness

• Debt Restructuring or Capital Injection: Address the large long-term liability urgently. Explore options such as converting debt to equity, negotiating payment terms, or securing additional investment to improve solvency.

• Profitability Focus: Implement a clear plan to generate revenue and control costs. The company must move towards generating operating profits to start reversing negative equity.

• Cash Flow Management: Maintain and improve positive net current assets by carefully managing receivables, payables, and inventory to ensure ongoing liquidity.

• Financial Monitoring: Establish regular financial reviews and forecasts to track progress and anticipate potential liquidity issues before they become critical.

• Stakeholder Communication: Keep shareholders and creditors informed about financial strategies and progress to maintain confidence and support.

• Consider Professional Advice: Engage financial advisors or turnaround specialists to assist with restructuring and business strategy to avoid liquidation risk.

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