EZZEE CONSULTING LTD

Executive Summary

EZZEE CONSULTING LTD is currently in a precarious financial position with negative net assets and no liquid assets to meet liabilities. The company shows signs of financial distress that require urgent intervention to avoid insolvency. Immediate measures to improve cash flow and restructure liabilities are essential to restore financial health.

EZZEE CONSULTING LTD - Analysis Report

Company Number: 13598998

Analysis Date: 2025-07-19 12:26 UTC

Financial Health Assessment: EZZEE CONSULTING LTD (as of 30 September 2024)

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1. Financial Health Score: D

Explanation:
EZZEE CONSULTING LTD shows clear signs of financial distress. The company’s net assets have turned negative, indicating insolvency on a balance sheet basis. Despite being a micro-entity with minimal filing requirements, the deterioration from positive net assets in previous years to negative net liabilities is a critical warning. The absence of current assets in 2024 and continuing liabilities reflect an unhealthy liquidity and capital position. This score indicates urgent attention is required to restore financial stability.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Current Assets	0	No liquid or short-term assets to cover immediate obligations, showing a “dry” cash flow state.
Current Liabilities	204	Small short-term debts exist, but with no assets to cover them, the company is under liquidity pressure.
Net Current Assets	-86	Negative working capital, a symptom of operational cash flow distress.
Total Assets Less Current Liabilities	-86	Indicates liabilities exceed assets, a classic symptom of financial distress.
Net Assets (Shareholders Funds)	-290	Negative equity signals insolvency, meaning liabilities exceed all assets owned.
Average Employees	0	No staff, which may reduce overhead but also limits operational capacity and growth prospects.

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3. Diagnosis

EZZEE CONSULTING LTD is exhibiting symptoms akin to a patient with critical organ failure—in this case, liquidity and solvency. The company’s balance sheet has deteriorated significantly over the past two years. The negative net assets and net current assets reveal an inability to meet short-term obligations without external support, reflecting a serious cash flow crisis. The company has no employees, which may reduce costs but also suggests minimal business activity or inability to grow.

The steady increase in liabilities without corresponding asset growth is a red flag for creditors and investors. This condition, if left unmanaged, could lead to formal insolvency procedures such as administration or liquidation. The lack of current assets means the company has no buffer to absorb financial shocks or invest in growth.

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4. Recommendations

• Immediate Cash Flow Management: Investigate sources of emergency funding or credit lines to address liquidity shortfalls. Without cash or equivalents, the company risks forced closure.
• Liability Restructuring: Engage with creditors to restructure existing debts, possibly negotiating payment terms to ease short-term pressure.
• Operational Review: Evaluate business model viability—consider cost reduction, revenue enhancement, or pivoting to more profitable service lines within IT consultancy.
• Capital Injection: Seek shareholder or external investment to restore positive equity and fund operations.
• Financial Monitoring: Implement rigorous financial controls and regular cash flow forecasting to catch early signs of distress.
• Professional Advice: Given the risk of insolvency, consult insolvency practitioners or financial advisors promptly for restructuring options.

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