Company Number: 12689492

Analysis Date: 2025-07-20 17:16 UTC

Financial Health Assessment for EASY ACCOMMODATION LTD (as of 30 June 2024)

---

1. Financial Health Score: D

Explanation:
The company shows signs of financial distress with a substantial increase in current liabilities and a negative net asset position over recent years, despite some recovery in 2024. The micro-entity status limits detailed disclosures, but available data points to liquidity and solvency challenges. The score reflects a business that is struggling to maintain healthy financial vital signs and requires immediate attention to avoid further deterioration.

---

2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£1,915	Stable but minimal long-term investment
Current Assets	Not reported in 2024, last 2021 = £2,367	Absence of reported current assets in 2024 may indicate liquidity concerns
Current Liabilities	£13,580	Significant increase indicating rising short-term obligations
Net Current Assets (Working Capital)	-£13,580	Negative working capital signals cash flow issues and difficulty meeting short-term debts
Total Assets Less Current Liabilities	-£11,665	Negative value reflects that liabilities exceed assets
Net Assets / Shareholders’ Funds	-£11,815	Negative equity indicates insolvency on a balance sheet basis
Share Capital	£1.00	Nominal capital, minimal buffer for creditors
Employees	0	No staff; possibly a very small or dormant operation

Interpretation:

• The most alarming vital sign is the negative net current assets (working capital) of -£13,580 and the negative net assets of -£11,815 in 2024. This indicates the company’s short-term liabilities exceed its short-term assets and overall liabilities exceed total assets.
• The fixed assets remain minimal and unchanged, suggesting no recent investment in productive capacity or growth assets.
• The absence of current assets reported in 2024 could suggest cash depletion or unreported receivables/inventory, worsening liquidity.
• Increasing current liabilities more than doubled from £5,422 in 2023 to £13,580 in 2024, signaling mounting financial pressure.
• The company has no employees, which could mean limited operational activity, but also no payroll burden.

---

3. Diagnosis: Financial Condition Analysis

Symptoms of Financial Distress:

• Liquidity Strain: Negative working capital (-£13,580) indicates the company is likely struggling to meet immediate obligations. This is akin to a patient showing signs of dehydration—cash inflows are insufficient to cover outflows.
• Solvency Issues: Negative net assets demonstrate that the company’s liabilities exceed its total assets, a critical symptom indicating insolvency risk. This places the company in a precarious financial state, similar to an organ failing to perform essential functions.
• Stagnant Asset Base: Fixed assets remain nominal and unchanged, suggesting no recent capital expenditure or asset growth, which may limit future revenue generation capacity.
• No Employees: This could suggest minimal operational activity, possibly a dormant or non-trading state, which can be a symptom of business inactivity or planned restructuring.
• Volatility in Financial Position: The company has swung from negative net assets in prior years to a slight recovery and back to a worsening position, reflecting unstable financial health.

Underlying Business Health:
The company appears to be under financial strain, with liabilities increasing faster than assets, and insufficient current assets to cover these liabilities. This condition may be caused by operational losses, poor cash flow management, or delayed receivables. Without intervention, the business risks insolvency or forced restructuring.

---

4. Recommendations: Improving Financial Wellness

• Improve Liquidity Management:
  Immediate focus should be on increasing current assets or reducing current liabilities to restore positive working capital. This could involve negotiating extended payment terms with suppliers, accelerating receivables collection, or securing short-term financing.

• Capital Injection:
  Consider raising additional equity or shareholder loans to improve net assets and provide a buffer against liabilities. Increasing the share capital beyond the nominal £1.00 would strengthen the balance sheet and creditor confidence.

• Cost Control and Operational Review:
  With no employees and minimal fixed assets, review operational activities to ensure the company is not incurring unnecessary expenses. If the business model is not sustainable, consider restructuring or pivoting to more profitable activities.

• Financial Planning and Forecasting:
  Develop robust cash flow forecasts and budgets to anticipate and manage financial stress points. Regular financial health checks should be instituted to detect early warning signs.

• Explore Professional Advice:
  Given the symptoms of distress, consulting insolvency practitioners or financial advisors can help in restructuring debt or exploring recovery options before the financial condition worsens.

---