FLICKERFINDSPK LTD

Executive Summary

FLICKERFINDSPK LTD is in the early stages of operation but already showing financial stress signals, including negative net assets and working capital deficits. Immediate action to improve liquidity and capital structure is critical to avoid worsening financial distress. With careful management and funding support, the company can stabilize and pursue growth.

FLICKERFINDSPK LTD - Analysis Report

Company Number: 15211157

Analysis Date: 2025-07-29 14:46 UTC

Financial Health Assessment for FLICKERFINDSPK LTD

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1. Financial Health Score: D

Explanation:
The company shows initial signs of financial distress with negative net assets and liabilities exceeding assets. While it is a micro-entity with minimal operational history (incorporated in late 2023), the financial "vital signs" indicate early symptoms that warrant caution and active management.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	0	No long-term assets; typical for a newly incorporated micro-entity.
Current Assets	9,910	Limited liquid resources, likely cash or receivables.
Current Liabilities	12,125	Short-term debts exceed current assets, indicating working capital deficit.
Net Current Assets	-2,215	Negative working capital ("cash flow symptoms" of distress).
Total Net Assets	-2,215	Equity is negative, meaning liabilities exceed assets.
Shareholders’ Funds	-2,215	Owner's equity is in deficit, a critical financial warning.
Employee Count	1	Very small scale of operations.

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3. Diagnosis: What the Financial Data Reveals

• Liquidity Stress: The company’s current liabilities exceed its current assets, yielding negative net current assets. This indicates a “symptom” of liquidity strain, where the firm may face difficulties in meeting short-term obligations without additional funding or cash inflows.

• Capital Deficiency: Negative net assets and shareholders’ funds suggest the company is technically insolvent on a balance sheet basis. This is a serious “underlying condition” implying that the business has either generated losses or incurred debts exceeding its resources.

• Early Stage Business: Given the incorporation date in October 2023 and micro-entity status, the company may still be in the startup phase, where initial losses and cash flow challenges are common. However, these “early-stage symptoms” need to be carefully managed to avoid deterioration.

• Single Director and Owner Control: Miss Rimsha Pervaiz owns 75-100% of the shares and voting rights, indicating tight control but also concentration risk. The company has only one employee, signaling limited operational scale.

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4. Recommendations: Actions to Improve Financial Wellness

• Strengthen Liquidity: Explore short-term financing options such as director loans, overdrafts, or supplier credit to cover current liabilities and avoid cash flow “crisis symptoms.”

• Increase Capital Base: Consider an equity injection by the shareholder or new investors to restore positive net assets and improve solvency.

• Cost Management: Review and reduce operational expenses to limit cash outflows, preserving the “financial health” needed for survival.

• Revenue Growth Focus: Prioritize sales growth strategies to improve cash inflows and transition from negative working capital to a healthier “cash flow profile.”

• Regular Financial Monitoring: Implement monthly cash flow forecasts and management accounts to detect and address “symptoms” of financial stress early.

• Compliance and Filings: Maintain timely statutory filings and ensure legal compliance to avoid penalties and reputational risks.

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