FORC LTD

Executive Summary

FORC LTD is currently showing signs of financial stress with no liquid assets and a history of negative net assets, indicating a fragile financial position. Immediate action is needed to restore cash flow and operational activity to avoid potential insolvency. Maintaining regulatory compliance is a positive, but a strategic turnaround plan should be prioritized to improve financial health.

FORC LTD - Analysis Report

Company Number: 14284028

Analysis Date: 2025-07-29 20:10 UTC

Financial Health Assessment for FORC LTD

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1. Financial Health Score: D

Explanation:
FORC LTD shows signs of financial distress with zero current assets and net liabilities reported in the latest fiscal year (2024). The company has no cash or debtors this year, and its net assets have deteriorated from a negative position in previous years. While the company is active and compliant with filing deadlines, the absence of working capital and persistent losses suggest a fragile financial state.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	0	10,557	Complete depletion of current assets (cash + debtors)
Cash	0	7	No liquid cash available, risky for day-to-day ops
Debtors	0	10,550	No receivables, possibly no sales or collections
Current Liabilities	0	10,936	Cleared current liabilities, but no assets backing
Net Current Assets	0	-379	Improved nominally but zero net working capital now
Net Assets	0	-379	Negative net assets previously, now zero but no buffer
Shareholders Funds	1	-379	Equity restored nominally but fragile

Interpretation of Vital Signs:

• "Healthy Cash Flow" is absent: The company currently holds no cash or receivables, a critical symptom indicating inability to fund operations or pay creditors from liquid assets.
• "Symptom of distress" in net assets: Negative net assets in prior years indicate accumulated losses, although year 2024 shows zero net liabilities, this is due to no recorded assets or liabilities, which is not inherently positive.
• No current liabilities in 2024: This may reflect delayed transactions or accounting timing rather than true elimination of obligations.
• Minimal equity base: Share capital remains at £1, indicating minimal financial cushion against shocks.

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3. Diagnosis

FORC LTD appears to be in a precarious financial condition. The company has effectively exhausted its liquid resources and has no current assets to support ongoing operations. The absence of debtors and cash in 2024 suggests either a cessation or severe reduction in business activity, or possibly a delay in recording transactions. The prior years' negative net assets and creditors due to taxation/social security obligations point toward prior operating losses and financial strain.

The company is not in liquidation or administration, and filings are up to date, indicating no immediate regulatory distress. However, the financial "vital signs" resemble a patient with depleted energy reserves and no immediate capacity to sustain normal metabolic functions (business operations). Without intervention, this state could lead to insolvency.

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4. Recommendations

• Immediate Cash Injection: The company needs fresh working capital to restore liquidity—consider shareholder loans, capital injection, or external financing. This will help restart healthy cash flow and cover short-term obligations.
• Review Business Operations: Assess why trade receivables dropped to zero and if sales activities have ceased or are stalled. Reinvigorate revenue-generating activities or pivot business strategy.
• Cost Control: Tighten expense management to reduce cash burn while re-establishing income streams.
• Financial Monitoring: Implement rigorous cash flow forecasting and regular financial health checks to detect early symptoms of distress.
• Seek Expert Advice: Engage financial and business advisors to develop a turnaround plan or explore restructuring options before distress worsens.
• Compliance and Transparency: Continue timely filing of accounts and confirmation statements to maintain regulatory compliance and stakeholder confidence.

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