FLOYD TWENTY ONE LIMITED

Executive Summary

Floyd Twenty One Limited is currently facing significant financial challenges marked by negative working capital and net liabilities, akin to a patient requiring immediate intervention. The company needs to urgently improve liquidity, manage short-term debts, and consider capital injection to stabilize its financial health. With careful management and strategic action, the company can improve its prognosis and build a sustainable financial foundation.

FLOYD TWENTY ONE LIMITED - Analysis Report

Company Number: 14692870

Analysis Date: 2025-07-29 12:11 UTC

Financial Health Assessment for Floyd Twenty One Limited

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1. Financial Health Score: D

Explanation: The company exhibits significant financial distress signs, particularly a negative net asset position and severely negative working capital, which are critical "vital signs" indicating financial instability. While the company is newly incorporated and in the early stages, the current figures suggest an unhealthy financial state that requires urgent attention.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	76,000	Represents investment in long-term assets; relatively stable but modest for a property trading entity.
Current Assets	1,008	Very low liquidity; minimal cash or receivables available to meet short-term obligations.
Current Liabilities	82,689	High short-term debts due within one year; a concerning level relative to current assets.
Net Current Assets	-81,681	Negative working capital indicates inability to cover short-term debts—a critical symptom of distress.
Total Assets Less Current Liabilities	-5,681	Negative figure shows total assets are insufficient to cover current liabilities.
Net Assets / Shareholders' Funds	-6,131	Negative equity reflects accumulated losses or financial deficit.
Number of Employees	0	No staff costs currently, which might reduce overhead but also indicates limited operational scale.

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3. Diagnosis: Financial Condition Assessment

Floyd Twenty One Limited shows "symptoms of distress" primarily through its severely negative working capital and net asset deficit. The company's current liabilities overwhelm its current and total assets, signaling liquidity constraints and potential solvency issues if these conditions persist. This financial "illness" could hinder the company's ability to meet creditors’ demands promptly, risking insolvency events.

As a micro-entity involved in the buying and selling of own real estate (SIC 68100), the asset base (£76,000 in fixed assets) is modest but could be a foundation for recovery if managed well. However, the lack of current assets (cash or receivables) against a high current liability burden suggests cash flow problems—akin to a patient with a weak pulse and low blood pressure requiring immediate care.

The company is very young (incorporated in 2023), and early-stage deficits may reflect initial investment and setup costs. However, without improving liquidity and reducing liabilities or increasing assets, the prognosis is guarded.

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4. Recommendations: Path to Financial Wellness

• Improve Liquidity: Focus on increasing current assets, particularly cash reserves. This could be achieved by accelerating receivables collection, injecting additional capital, or selling non-core assets.
• Liability Management: Negotiate with creditors to restructure or extend payment terms to reduce short-term pressure. Avoid new short-term debt that worsens liquidity.
• Capital Injection: Given net liabilities, an equity injection from shareholders or new investors is critical to restore positive net assets and confidence.
• Cost Control: Maintain low operating costs given current zero employees, but plan for controlled scaling aligned with cash flow improvements.
• Financial Planning: Develop a detailed cash flow forecast and budget to monitor liquidity regularly and avoid surprises.
• Strategic Asset Management: Review fixed assets for potential sale or better utilization to generate cash without impairing core operations.
• Monitor Director Involvement: With a single controlling shareholder/director holding 75-100% control, ensure governance and decision-making are robust to navigate the financial challenges.

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