CSELEVEN LTD

Executive Summary

CSELEVEN LTD shows clear symptoms of financial distress with negative working capital and equity, reflecting liquidity and solvency challenges. Immediate actions to improve cash flow, restructure liabilities, and inject capital are critical to avoid further deterioration and secure the company’s future viability.

CSELEVEN LTD - Analysis Report

Company Number: 13127834

Analysis Date: 2025-07-20 12:21 UTC

Financial Health Assessment for CSELEVEN LTD

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1. Financial Health Score: D (At Risk)

Explanation:
CSELEVEN LTD shows persistent negative net current assets and shareholders' funds over the last four years, signaling ongoing financial distress. While the company remains active and compliant with filings, the liquidity "vital sign" is weak, indicating cash flow and solvency challenges. The score D reflects a business that is struggling financially and at risk without corrective actions.

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2. Key Vital Signs

Metric	Latest (2024)	Interpretation
Current Assets	£58,337	Short-term resources including cash and debtors.
Cash at Bank	£15,015	Limited cash cushion; low liquidity buffer.
Debtors	£43,322	Significant receivables; potential cash conversion delay.
Current Liabilities	£218,309	High immediate obligations due within one year.
Net Current Assets (Working Capital)	-£159,972	Negative by a large margin; indicates liquidity stress.
Shareholders’ Funds (Equity)	-£160,972	Negative equity reflects accumulated losses.
Trend (2021-2024)	Worsening net current assets and equity	Financial deterioration over time.

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3. Diagnosis: Symptoms of Financial Distress

• Liquidity Strain: The company is showing clear symptoms of liquidity "illness" with negative working capital of nearly £160k. This means current obligations exceed readily available short-term assets by a large margin, signaling a risk of cash flow crises.

• Negative Equity: Shareholders’ funds are deeply negative, akin to a patient with a chronic condition where accumulated losses have eroded the company’s net worth. This could hinder the ability to raise new capital or secure financing.

• Reliance on Debtors: A large proportion of current assets are tied up in debtors (£43k), which may delay cash inflows and exacerbate liquidity issues if collections are slow.

• Stable but Insufficient Cash: While cash has increased to £15k, this is still insufficient to cover immediate liabilities of £218k.

• No Employees: The company reports no employees, suggesting it may be asset-light or in early-stage operations, which can limit operational flexibility.

• Going Concern Note: Directors state reliance on ongoing support from shareholders, indicating the company may be dependent on external funding or loans to "stay alive" — a fragile position.

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4. Recommendations: Prescription for Financial Wellness

• Improve Cash Flow Management:
  Accelerate collection of debtors and consider tighter credit control to reduce receivables days. This will improve liquidity and reduce working capital strain.

• Restructure Liabilities:
  Negotiate with creditors to extend payment terms or reduce immediate liabilities to ease short-term cash flow pressures.

• Capital Injection:
  Consider equity funding or shareholder loans to restore positive net assets and build financial resilience.

• Cost Control and Revenue Growth:
  Explore ways to increase turnover and reduce overheads to return to profitability, addressing the root cause of losses.

• Regular Financial Monitoring:
  Implement monthly cash flow forecasting and financial reviews to detect early signs of distress and respond proactively.

• Explore Strategic Options:
  If turnaround is not feasible, consider restructuring options to avoid insolvency risks.

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Executive Summary

CSELEVEN LTD is currently experiencing significant financial distress, characterized by ongoing negative working capital and shareholders' funds, indicating liquidity shortages and accumulated losses. Without strategic interventions such as cash flow improvement, liability restructuring, and capital support, the company's financial health may deteriorate further, threatening its going concern status. Immediate attention to operational and financial controls is essential to restore stability and confidence.