CUNDA LIMITED

Executive Summary

CUNDA LIMITED shows clear signs of financial strain, with negative working capital and net liabilities indicating liquidity and solvency concerns at this early stage. Immediate focus on liquidity management, cost control, and capital strengthening is essential to restore financial health and ensure sustainable operations. Regular financial oversight and strategic growth initiatives will be critical to improving the company's outlook.

CUNDA LIMITED - Analysis Report

Company Number: 14581873

Analysis Date: 2025-07-19 12:42 UTC

Financial Health Assessment of CUNDA LIMITED

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1. Financial Health Score: D

Explanation:
CUNDA LIMITED currently exhibits signs of financial distress, primarily indicated by negative net current assets and net liabilities. The company’s working capital position has deteriorated from a slight positive in the prior year to a negative working capital position this year, suggesting liquidity pressure. Given it is a micro-entity with no employees and modest current assets, the financial health is fragile, warranting close monitoring and corrective action.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	5,049	4,037	Slight increase in liquid and short-term assets, a positive sign.
Current Liabilities	6,012	3,969	Significant increase in short-term debts, a warning symptom for liquidity.
Net Current Assets	(963)	68	Shift from a small positive to negative indicates cash flow strain.
Net Assets (Equity)	(963)	(112)	Negative equity indicates accumulated losses or funding shortfall.
Shareholders Funds (Equity)	(963)	(113)	Mirrors net assets, confirming negative retained earnings/funding.
Average Employees	0	0	No employees; operations likely lean or early-stage.

Interpretation of Vital Signs:

• Negative working capital ("symptom of distress") means CUNDA LIMITED currently owes more in short-term liabilities than it can cover with its short-term assets, which can lead to cash flow problems and difficulty meeting immediate financial obligations.
• The increase in current liabilities outpacing current assets suggests rising short-term financial pressure.
• The negative net assets/shareholders funds indicate that the company’s liabilities exceed its total assets, a red flag for solvency and financial stability.
• No employees indicates perhaps a startup or very lean operation but also limits operational capacity and revenue generation.

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3. Diagnosis

CUNDA LIMITED is in the early stages of operation (incorporated Jan 2023) and classifies as a micro-entity. The financial statements reveal negative net current assets and net liabilities, signaling a liquidity crunch and an imbalance between resources and obligations. The company has not yet generated sufficient retained earnings or equity to build a positive net asset base.

The company’s retail and wholesale activities (mail order, internet sales, market stalls) may be in initial setup or growth phases, reflected in modest asset sizes and no employees. However, the growing current liabilities without matching asset growth could indicate delayed payments, rising creditor demands, or operational inefficiencies.

There is no indication of insolvency proceedings, and filings are up to date, which is positive. But the company’s financial “vital signs” show symptoms of distress that require intervention to restore healthy financial balance.

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4. Recommendations

To improve financial wellness and navigate the current challenges, CUNDA LIMITED should consider the following actions:

• Improve Liquidity Management:
  Prioritize collecting receivables quickly and managing payables to avoid overdue liabilities. Negotiate longer payment terms with suppliers if possible to ease cash flow pressure.

• Cost Control and Operational Efficiency:
  Since the company has no employees, review operational expenses and overheads carefully. Avoid unnecessary spending and optimize inventory and stock turnover.

• Capital Injection or Funding:
  Address negative equity by seeking additional capital from shareholders or external investors to strengthen the balance sheet and provide a buffer against financial shocks.

• Revenue Growth Initiatives:
  Accelerate sales efforts, marketing, or product range diversification to increase turnover and generate cash inflows, which will help turn current liabilities into manageable levels.

• Regular Financial Monitoring:
  Implement monthly cash flow forecasting and financial reporting to detect and respond to liquidity issues proactively before they become critical.

• Professional Advice:
  Engage with finance or business advisors to explore restructuring options, funding routes, or operational improvements tailored to the company’s retail and wholesale business model.

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