Company Number: 13611155

Analysis Date: 2025-07-29 14:04 UTC

Financial Health Assessment for DEALT WITH LIMITED

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1. Financial Health Score: D

Explanation:
The company's financials reveal persistent negative net assets and working capital deficits, indicating financial distress. While the company remains active and compliant with filings, its balance sheet shows sustained losses and insufficient liquidity to cover short-term obligations, meriting a below-average health grade.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Current Assets	1,988	Very low liquid assets; company has minimal cash or receivables to meet immediate liabilities.
Current Liabilities	16,777	High short-term debts relative to assets; potential liquidity crunch.
Net Current Assets	-14,789	Negative working capital; symptoms of cash flow distress and inability to cover short-term debts.
Net Assets (Shareholders' Funds)	-15,189	Negative equity indicates accumulated losses exceeding capital invested; a sign of balance sheet insolvency risk.
Average Employees	2	Very small workforce consistent with micro entity status; limited operational scale.
Filing Status	Up to date	No overdue accounts or confirmation statements; good compliance symptom.

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3. Diagnosis

Symptoms Analysis:

• The company has reported negative net assets and negative working capital consistently over the last four years, which suggests chronic financial strain.
• Current liabilities are significantly higher than current assets, creating a "symptom" of liquidity risk, meaning the company might struggle to pay bills and creditors on time without additional financing.
• Negative shareholders’ funds indicate that accumulated losses have eroded the owners' equity, a "diagnostic sign" of financial distress and potential solvency issues in the absence of corrective measures.
• The company operates within the "Other software publishing" sector (SIC 58290), which typically requires investment in intellectual property and development but shows no significant fixed assets or capital investment reported, implying perhaps early-stage or limited operational activity.
• The company maintains a small staff and is compliant with filing deadlines, reflecting operational discipline but this does not alleviate the financial strain.

Overall, these symptoms point towards a fragile financial state characterized by insufficient liquidity, erosion of capital, and a risk of insolvency if current trends continue.

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4. Recommendations

1. Improve Liquidity:

   • Seek additional working capital injections either from shareholders or external lenders to stabilize cash flow and reduce negative net current assets.
   • Accelerate collection of receivables and manage payables carefully to improve cash flow cycles.

2. Cost Control and Revenue Enhancement:

   • Evaluate operational expenses and reduce discretionary spending to conserve cash.
   • Explore new revenue streams or increase sales efforts to improve top-line performance.

3. Financial Restructuring:

   • Consider restructuring debt to extend repayment terms or convert debt to equity to strengthen the balance sheet.
   • Engage with financial advisors or insolvency practitioners early if financial distress worsens.

4. Regular Financial Monitoring:

   • Implement monthly financial reviews focusing on cash flow forecasts and liquidity ratios to detect early warning signs.
   • Enhance reporting transparency to stakeholders regarding financial challenges and recovery plans.

5. Strategic Review:

   • Assess the business model and market positioning within the software publishing industry to identify opportunities for growth or necessary pivots.

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