GEO-TRAININGS LTD

Executive Summary

GEO-TRAININGS LTD is currently facing serious liquidity challenges, with negative working capital and net assets indicating financial distress. The company's financial condition requires urgent corrective actions including cash flow management, liability restructuring, and potential capital infusion to restore stability. Prompt intervention will be critical to avoid further deterioration and ensure continued operation.

GEO-TRAININGS LTD - Analysis Report

Company Number: 12554121

Analysis Date: 2025-07-29 20:22 UTC

Financial Health Assessment for GEO-TRAININGS LTD (as at 30 April 2025)

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1. Financial Health Score: D

Explanation:
The company's financial condition exhibits significant signs of distress, primarily due to persistent net current liabilities and negative net assets. The sharp deterioration in working capital and shareholders' funds over recent years suggests liquidity challenges and potential solvency issues. This places the business in a precarious position, warranting urgent corrective measures.

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2. Key Vital Signs:

Metric	2025 (£)	2024 (£)	2023 (£)	Interpretation
Current Assets	3	695	695	Drastically reduced cash and receivables, indicating very limited liquid resources.
Current Liabilities	3,432	2,304	2,304	Increasing short-term debts and obligations to pay within a year.
Net Current Assets (Working Capital)	-3,429	-1,609	-1,609	Negative working capital, meaning the company cannot cover short-term liabilities with current assets.
Net Assets / Shareholders' Funds	-3,429	-1,609	-1,609	Negative equity, implying liabilities exceed assets; a sign of balance sheet weakness.
Share Capital	1.00	1.00	1.00	Minimal paid-up capital, typical for a small private micro-entity.
Employees	0	0	0	No staff employed, possibly indicating a dormant operational status or outsourcing.

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3. Diagnosis:

• Symptoms of Distress:
  The company is showing clear symptoms akin to a patient suffering from severe dehydration and malnutrition—here represented by severely limited liquid assets (cash and equivalents) coupled with rising liabilities. The working capital deficit means the business lacks the immediate resources to meet its short-term obligations, which is a critical warning sign of liquidity strain.

• Underlying Issues:
  The negative net assets over multiple years, worsening in the latest year, suggest that the business has been incurring losses or has accumulated debts without corresponding asset growth. In financial terms, this can be compared to a company "running on empty," with insufficient financial reserves to sustain ongoing operations.

• Operational Status:
  The absence of employees and negligible current assets may imply that the company is either inactive operationally or in a holding phase with limited business activity. However, the increasing liabilities point to ongoing obligations that are not being matched by asset inflows.

• Compliance & Filing:
  The accounts are up to date, not overdue, and prepared under micro-entity provisions, which is typical for small companies. This indicates compliance with statutory requirements despite financial difficulties.

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4. Recommendations:

1. Immediate Cash Flow Management:

   • Review and prioritize short-term liabilities to avoid defaults.
   • Explore options to increase liquid assets, e.g., through capital injection, asset sales, or collection of receivables.

2. Restructure Liabilities:

   • Negotiate with creditors to restructure payment terms, possibly extending deadlines or reducing interest rates to ease cash flow pressure.

3. Capital Infusion:

   • Consider bringing in new equity investment or shareholder loans to restore positive net assets and improve the balance sheet.

4. Operational Review:

   • Clarify the company’s business model and operational activity. If inactive, evaluate the rationale for maintaining the entity or consider formal dormancy or closure procedures to limit ongoing liabilities.

5. Financial Monitoring:

   • Implement regular financial health checks, focusing on liquidity ratios and working capital to detect early signs of distress and act proactively.

6. Professional Advice:

   • Seek advice from insolvency practitioners or financial advisors if liquidity issues persist, to explore options like administration or restructuring before insolvency risk materializes.

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Medical Analogy Summary:

GEO-TRAININGS LTD’s financial "vital signs" reveal a business suffering from a critical liquidity deficiency—its "circulatory system" (cash flow) is weak, and its "immune system" (equity base) is compromised. Without prompt intervention, the company risks "organ failure" in the form of insolvency. Immediate "treatment" via capital support and liability management is essential to stabilize and restore financial health.

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