Company Number: 13456536

Analysis Date: 2025-07-29 18:01 UTC

Financial Health Assessment for GILLIONAIRE LTD. (as of 30 June 2024)

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1. Financial Health Score: D

Explanation:
GILLIONAIRE LTD. currently shows signs of financial distress, indicated primarily by negative shareholders' funds and a significant increase in current liabilities. While it has some current assets, the company's net working capital and equity position have deteriorated sharply over the last two years. This score reflects a company with symptoms of financial stress that requires urgent attention to stabilize and restore financial health.

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2. Key Vital Signs

Metric	2024	2023	Interpretation
Fixed Assets	£4,436	£5,550	Low level of long term assets; typical for micro company in software & retail sector.
Current Assets	£46,399	£64,209	Noticeable decrease; cash and receivables shrinking — possible cash flow pressure.
Current Liabilities	£27,417	£3,948	Sharp increase in short-term debts/creditors; potential liquidity strain.
Net Current Assets (Working Capital)	£18,982	£60,261	Significant drop; less buffer to cover short-term obligations.
Shareholders' Funds (Equity)	£-10,432	£31,961	Negative equity signals accumulated losses or liabilities exceeding assets; a critical red flag.
Provisions for liabilities	£33,850	£33,850	Stable but substantial; indicates existing contingent or future obligations.
Employee count	1	1	Micro entity with minimal staff, limiting fixed costs but also operational capacity.

Interpretation of Vital Signs:

• Liquidity: Current assets still exceed current liabilities, but the margin has narrowed significantly, indicating a "weak pulse" in working capital. The company may struggle to meet short-term debts if this trend continues.
• Solvency: Negative shareholders' funds represent a "symptom of distress," implying that liabilities outweigh net assets, endangering long-term viability.
• Asset Base: Fixed assets are minimal, which is typical for the sector but also means limited collateral for borrowing.
• Provisions: Significant provisions remain unchanged, suggesting ongoing or unresolved liabilities impacting financial health.

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3. Diagnosis

GILLIONAIRE LTD exhibits symptoms of financial distress. The key indicator is the move from positive equity in 2023 (£31,961) to negative equity in 2024 (-£10,432), showing the company has either incurred losses or liabilities have increased beyond its assets. The sharp rise in current liabilities (almost 7-fold increase) is concerning and may be due to mounting trade creditors, short term loans, or provisions crystallizing.

The company’s current assets have shrunk while liabilities increased, signaling potential liquidity crunch. Although current assets still cover current liabilities, the reduced working capital cushion is akin to a patient whose blood pressure has dropped dangerously low — still alive but unstable.

The small scale of the business (micro entity) and minimal employees mean fixed costs are low, but the company lacks scale to absorb shocks or invest in growth without additional funding.

Given the company operates in software development and retailing of computer products, sectors that can be competitive and capital intensive, the financial strain suggests operational or market challenges impacting profitability and cash generation.

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4. Recommendations

To improve financial wellness, GILLIONAIRE LTD should consider the following actions akin to a medical treatment plan:

• Cash Flow Stabilization: Prioritize collection of receivables and management of payables to restore healthy cash flow. Consider negotiating extended payment terms with suppliers or short-term financing to ease liquidity pressure.
• Cost Control: Review all operating expenses to identify and cut non-essential spending. Maintaining a lean cost structure is vital given current financial strain.
• Capital Injection: Explore options for equity funding or loans to restore positive net assets and strengthen the balance sheet. This infusion can act like a transfusion to revive weakened equity.
• Review Provisions: Assess the nature of the substantial provisions (£33,850) to understand if liabilities can be resolved or minimized, reducing future financial burden.
• Business Model Assessment: Evaluate product lines and market positioning to identify reasons for profitability decline. Adjust strategy to focus on higher-margin activities or growth niches within software and retail sectors.
• Regular Financial Monitoring: Establish tighter financial controls and forecasting to detect early warning signs and avoid further deterioration.

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