DE KUBUS CONSULTANCY LTD

Executive Summary

DE KUBUS CONSULTANCY LTD is currently experiencing significant financial distress, characterized by negative net assets and zero liquidity, indicating a critical need for immediate financial intervention. While the company remains active and compliant with filings, urgent actions such as capital injection and cash flow management are essential to avoid insolvency and stabilize its financial health.

DE KUBUS CONSULTANCY LTD - Analysis Report

Company Number: 12818419

Analysis Date: 2025-07-20 16:19 UTC

Financial Health Assessment: DE KUBUS CONSULTANCY LTD (As of 31 August 2024)

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1. Financial Health Score: D

Explanation:
The company exhibits significant financial distress, as evidenced by a negative net asset position and negative working capital. The lack of current assets to cover current liabilities signals liquidity issues. Although the company is active and up to date with filings, the financial "vital signs" indicate symptoms that warrant urgent attention.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	0	No short-term liquid assets available; cash or receivables at zero—critical concern
Current Liabilities	5,882	Obligations due within one year
Net Current Assets	-5,882	Negative working capital; unable to cover short-term debts—symptom of liquidity distress
Total Assets Less Current Liabilities	-5,882	Indicates overall net liabilities after subtracting current liabilities from total assets
Net Assets (Equity)	-7,182	Shareholders’ funds are negative—capital erosion and insolvency risk
Share Capital	100	Minimal initial capital; insufficient to cover losses
Average Number of Employees	0	No workforce expense burden, but also no operational scale

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3. Diagnosis: Financial Condition Overview

"Symptoms" observed:

• Negative net assets and negative working capital: These are classic symptoms of financial distress, indicating that the company does not have enough resources to meet its current obligations. This could lead to solvency issues if not remedied.
• Zero current assets: The absence of cash or receivables suggests a lack of liquidity, which is critical for day-to-day operations. This "flatlined" cash flow is a danger signal.
• Increasing liabilities: Current liabilities have grown significantly from £500 in 2023 to £5,882 in 2024, while assets have disappeared, worsening the balance sheet health.
• No employees: The company currently has no employees, which might mean a low operational cost base but could also indicate inactivity or reliance on contractors or the director(s).
• Shareholders’ funds erosion: The capital base has been eroded from £975 in 2023 to a negative position, which may reflect accumulated losses or unrecorded liabilities.

Potential underlying causes:

• Poor revenue generation or delayed payments from clients leading to cash shortages.
• Accumulation of debts possibly related to operational costs or supplier invoices.
• Limited capital injection or reinvestment to sustain or grow the business.

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4. Prognosis: Future Financial Outlook

Without corrective action, the company risks insolvency due to inability to meet short-term obligations, which may lead to:

• Creditor enforcement actions or insolvency proceedings.
• Difficulties in securing credit or investment.
• Loss of business credibility impacting future contracts or partnerships.

However, as the company is still active and up to date with filings, there is a window to stabilize the situation through capital infusion, cost control, or restructuring.

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5. Recommendations: Actions to Improve Financial Wellness

1. Inject Capital: Immediate injection of funds or shareholder loans to improve liquidity and restore positive net assets.
2. Cash Flow Management: Establish strong cash flow monitoring and forecasting to avoid surprises and ensure timely payments.
3. Reduce Liabilities: Negotiate with creditors for extended payment terms or debt restructuring to ease short-term pressures.
4. Operational Review: Evaluate business model and cost structure, as zero employees may mean reliance on external contractors—ensure costs align with revenue.
5. Increase Revenue: Accelerate sales efforts, diversify client base, or improve billing and collection processes to boost current assets.
6. Regular Financial Monitoring: Implement monthly financial reviews to detect early warning signs and adjust strategies promptly.
7. Seek Professional Advice: Engage financial or turnaround specialists to assist with restructuring and cash flow improvements.

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Medical Analogy Summary

The company’s financial “vital signs” reveal a patient in critical condition with symptoms of liquidity failure and capital depletion. Without intervention, this “patient” risks collapse (insolvency). However, with timely treatment—capital support, cash flow stabilization, and cost management—the prognosis can improve, returning the company to a state of financial health.

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