Company Number: 13567146

Analysis Date: 2025-07-20 16:58 UTC

Financial Health Assessment of Fatcat Consultancy Limited

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1. Financial Health Score: D

Explanation:
The company’s current financial condition shows clear signs of distress. The latest year-end figures reveal negative net current assets and net liabilities, indicating a liquidity crunch and erosion of shareholder funds. Although the company is still active with no overdue filings, the downward trend from positive net assets to a significant deficit suggests financial instability that needs urgent attention.

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2. Key Vital Signs

Metric	FY 2024	FY 2023	Interpretation
Current Assets	£516	£17,381	Sharp decrease in liquid resources indicates cash flow issues.
Current Liabilities	£5,929	£13,776	Liabilities have decreased but remain significant relative to assets.
Net Current Assets (Working Capital)	-£5,413	£3,605	Negative working capital signals inability to meet short-term obligations.
Net Assets / Shareholders Funds	-£5,413	£413	Equity erosion; company is insolvent on a balance sheet basis.
Average Employees	1	1	Small workforce consistent with micro-entity status.

Interpretation of Vital Signs:

• The "healthy cash flow" indicated by current assets has dramatically deteriorated, a symptom of liquidity distress.
• Negative net current assets (working capital) imply the company may struggle to pay bills on time, increasing risk of creditor pressure.
• The decline from positive to negative net assets points to accumulated losses or write-downs eroding shareholder value.
• Given the micro-entity scale, even small financial shocks can severely impact stability.

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3. Diagnosis

Fatcat Consultancy Limited is displaying symptoms of financial distress, primarily liquidity shortage and balance sheet insolvency. The sudden plunge in current assets from £17,381 to £516 while liabilities remain substantial points to either poor cash management, delayed receivables, or increased short-term debt. The net liabilities of £5,413 at the latest year-end reflect an unhealthy financial position where the company owes more than it owns.

Despite no overdue filings and continued active status, this financial snapshot is akin to a patient whose vital signs have taken a sharp downturn — immediate intervention is necessary to prevent further deterioration.

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4. Recommendations

• Improve Cash Flow Management:
  Tighten control over receivables and payables to restore positive working capital. Consider negotiating extended payment terms with creditors and accelerating collections from debtors.

• Cost Control and Expense Review:
  Evaluate all operational expenses to identify and cut non-essential costs, preserving cash reserves.

• Capital Injection or Financing:
  Explore options for additional equity investment or short-term financing to stabilize net assets and meet liabilities timely.

• Regular Financial Monitoring:
  Implement frequent cash flow forecasting and monitoring to detect and address liquidity issues early.

• Consult Professional Advice:
  Given the negative net assets, seek advice from insolvency practitioners early to explore restructuring options before the situation worsens.

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