CSN HEALTHCARE LTD

Executive Summary

CSN Healthcare Ltd, a recently established micro-entity in specialist medical practice, currently exhibits financial stress marked by negative working capital and net assets. While typical for a start-up, these signs require urgent attention to improve liquidity and solvency. Immediate steps to boost cash flow and control costs will be critical to stabilizing the company’s financial health.

CSN HEALTHCARE LTD - Analysis Report

Company Number: 14569071

Analysis Date: 2025-07-20 18:16 UTC

Financial Health Assessment for CSN Healthcare Ltd (As of 31 January 2024)

---

1. Financial Health Score: D

Explanation:
The company is currently showing a negative net asset position and a working capital deficit, indicating early symptoms of financial distress. Given its very recent incorporation and micro-entity status, these figures are not uncommon for a start-up phase but require close monitoring and intervention to avoid worsening liquidity and solvency issues.

---

2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£1,241	Very limited liquid resources available.
Current Liabilities	£3,666	Short-term obligations exceed liquid assets.
Net Current Assets (Working Capital)	-£2,425	Negative working capital—a warning sign of liquidity strain.
Net Assets (Shareholders’ Funds)	-£2,425	Company is technically insolvent on a balance sheet basis.
Employee Count	1 (average)	Very small operation, low overhead.
Account Category	Micro	Simplified reporting; limited scale of operations.
Status	Active	Business currently operating, not in liquidation.
Industry (SIC 86220)	Specialist medical practice activities	Sector typically requiring stable cash flow and regulatory compliance.

---

3. Diagnosis: What the Financial Data Reveals

• Symptoms of Liquidity Stress: The company’s current liabilities are more than three times its current assets, indicating an inability to cover short-term debts with readily available resources. This "cash flow congestion" is a critical symptom often seen in new businesses still establishing revenue streams or awaiting customer payments.

• Negative Net Assets (Balance Sheet Insolvency): The shareholders’ funds are negative, meaning the company’s debts exceed its assets. This suggests the business has been funded through liabilities or equity injections not yet reflected as positive retained earnings.

• Early Stage / Start-up Characteristics: Given incorporation in January 2023 and a single employee, these financial "symptoms" may represent typical start-up phase challenges—initial costs, investment in infrastructure, and limited revenue generation.

• Risk of Financial Distress: Without improvement in cash generation or capital injection, the company risks escalating its liquidity problems, possibly leading to insolvency proceedings.

• Governance Note: The sole director (also secretary) holds significant control and responsibility, which may streamline decision-making but concentrates risk.

---

4. Recommendations: Steps to Improve Financial Wellness

• Strengthen Cash Reserves: Seek additional capital from shareholders or external investors to improve liquidity and reduce short-term creditor pressure.

• Enhance Revenue Generation: Accelerate client acquisition and billing cycles to improve cash inflows. Explore prepayment or deposit arrangements to increase available cash.

• Tighten Cost Controls: Monitor and minimize operational expenses until revenue stabilizes. Given the micro size, overheads are low but still require careful management.

• Regular Cash Flow Forecasting: Implement monthly cash flow projections to identify potential shortfalls early and plan funding or cost adjustments accordingly.

• Consider External Advice: Engage professional advisors for financial restructuring, funding options, or operational improvements to support sustainable growth.

• Monitor Liabilities: Negotiate extended payment terms with creditors where possible to ease immediate cash pressure.

• Governance and Compliance: Ensure all filing deadlines are met to avoid penalties and maintain good standing with Companies House.

---

Medical Analogy Summary

CSN Healthcare Ltd is currently displaying "symptoms of financial distress" common in the early "incubation phase" of a business. The "vital signs" such as negative working capital and net assets indicate the company is "in a critical condition" needing immediate "intervention" to restore "healthy cash flow" and balance sheet strength. Prompt "treatment" via capital injection and revenue enhancement is essential to avoid progressing from acute liquidity issues to chronic insolvency.

---