FOX GREEN G D LTD

Executive Summary

FOX GREEN G D LTD currently exhibits financial distress with negative net assets and working capital, indicating liquidity and solvency challenges. While operational and compliant, the company requires urgent strategic financial actions such as improving cash flow, restructuring debt, and capital reinforcement to restore financial stability and ensure sustainable operations.

FOX GREEN G D LTD - Analysis Report

Company Number: 13343088

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

Financial Health Assessment for FOX GREEN G D LTD as of 30 April 2024

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1. Financial Health Score: D

Explanation:
The company is showing clear signs of financial distress with negative net assets and persistent working capital deficits. While it remains active and compliant with filing deadlines, the financial "vital signs" indicate it is struggling to maintain a healthy balance sheet and liquidity position. The score 'D' reflects a company with significant financial challenges but not yet insolvent or in formal distress procedures.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	3,598	Minimal long-term assets — typical for a small micro-entity.
Current Assets	529	Very low short-term assets, indicating limited liquid resources.
Current Liabilities	(7,454)	Short-term debts significantly exceed current assets, a symptom of liquidity strain.
Net Current Assets (Working Capital)	(6,925)	Negative working capital: "symptom of cash flow distress," inability to cover short-term debts.
Total Assets less Current Liabilities	(3,327)	Negative figure implies liabilities exceed total assets, indicating "balance sheet weakness."
Net Assets (Shareholders’ Funds)	(3,903)	Negative net assets show accumulated losses or liabilities surpass equity — a sign of financial erosion.
Share Capital	1.00	Minimal equity injection; limited buffer to absorb losses.
Employees	1	Small workforce consistent with micro company status.

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3. Diagnosis

Symptoms Analysis:
FOX GREEN G D LTD exhibits classic symptoms of financial distress:

• Negative Net Assets: The company’s liabilities exceed its assets by approximately £3,900, indicating it is technically insolvent on a balance sheet basis. This "balance sheet deficit" weakens the company’s ability to attract investment or obtain credit.

• Negative Working Capital: With current liabilities exceeding current assets by nearly £7,000, the company may struggle to meet short-term obligations as they fall due. This "cash flow symptom" suggests potential liquidity issues.

• Declining Asset Base: Fixed assets decreased from £5,597 to £3,598 year over year, possibly due to asset sales or depreciation outpacing investment, reducing the company's operational capacity.

• Minimal Capital: The £1 share capital indicates a very small equity base, offering limited financial resilience.

• Compliance Status: Despite financial challenges, the company is current on statutory filings and has maintained its active status, which is a positive sign of governance discipline.

Overall Financial Condition:
The company is in a fragile financial state, with ongoing losses or liabilities eroding its capital base. This situation resembles a patient with chronic illness where the vital signs are below normal thresholds, requiring intervention to prevent further deterioration.

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4. Recommendations

To improve financial wellness and restore a healthy financial profile, FOX GREEN G D LTD should consider the following actions:

• Improve Liquidity: Focus on increasing current assets like cash or receivables. This could involve accelerating collections, negotiating longer payment terms with suppliers, or reducing unnecessary expenses.

• Restructure Short-term Debt: Engage creditors to possibly extend payment terms or convert some liabilities to longer-term debt to ease immediate cash flow pressure.

• Capital Injection: Consider raising additional equity or obtaining shareholder loans to bolster net assets and provide a financial cushion.

• Cost Management: Tighten control on overheads and discretionary spending, given the small scale of operations.

• Asset Utilization: Evaluate fixed assets to ensure they contribute effectively to revenue generation; consider asset sales only if they free up cash without harming operations.

• Financial Monitoring: Regularly track key metrics such as working capital and net assets to detect early warning signs and act promptly.

• Explore Revenue Growth: Given the company's classification in “Other service activities not elsewhere classified,” explore niche market opportunities or augment service offerings to increase turnover.

Failure to address these issues may lead to worsening financial health and potential insolvency risks.

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