GLOBAL OCEAN DATA SERVICES LIMITED

Executive Summary

Global Ocean Data Services Limited shows early signs of financial distress with significant liquidity shortfall and negative net assets in its first year. Immediate actions to improve cash flow, reduce costs, and increase capital are critical to stabilize the company’s financial health. Without intervention, the company faces risks associated with insolvency and operational disruption.

GLOBAL OCEAN DATA SERVICES LIMITED - Analysis Report

Company Number: 14684538

Analysis Date: 2025-07-29 14:55 UTC

Financial Health Assessment for Global Ocean Data Services Limited

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1. Financial Health Score: D (Poor)

Explanation:
The company is in its infancy, having been incorporated in February 2023, and its first set of accounts show significant financial distress. The net current liabilities of £62,244 indicate a severe liquidity shortfall, meaning the company does not have enough short-term assets (like cash or receivables) to cover its immediate debts. Shareholders’ funds are negative, signaling that the company’s liabilities exceed its assets. This sets a challenging financial baseline and highlights symptoms of financial strain.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£4,458	Very low short-term resources to cover immediate debts.
Current Liabilities	£66,702	High short-term debts payable within one year.
Net Current Assets	-£62,244	Negative working capital; liquidity is unhealthy.
Total Assets less Current Liabilities	-£62,166	Negative net assets, indicating solvency concerns.
Share Capital	£100	Minimal equity investment; low capital buffer.
Number of Employees	3	Small operational scale, typical for micro-entity.

• Liquidity ("Healthy cash flow"): The company lacks a healthy cash flow as evidenced by its negative net current assets. This is a critical symptom of distress, indicating potential difficulty meeting short-term obligations.

• Solvency ("Balance sheet health"): Negative shareholders’ funds show the company is currently insolvent on a balance sheet basis, a red flag for creditors and investors.

• Scale & Stage: As a micro-entity in its first year with minimal share capital, it is expected to have limited financial resources, but the large shortfall relative to assets is concerning.

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3. Diagnosis

Underlying Financial Condition:
Global Ocean Data Services Limited exhibits clear symptoms of financial distress in its first year. The negative working capital ("unhealthy liquidity") indicates the company faces challenges in meeting its short-term liabilities. This can be due to undercapitalization, insufficient revenue generation, or high startup costs typical of a new business.

The negative net assets and shareholders’ funds reflect a solvency issue — the company’s debts exceed its total assets. This condition is precarious because it may hinder the ability to obtain financing or trade on credit.

The presence of multiple directors and shareholders with significant control suggests a closely held company, which may provide some operational support but does not offset the immediate financial strain.

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4. Recommendations

To improve financial wellness and move towards a stable and healthy financial state, the company should consider the following action plan:

1. Address Liquidity Shortfall:

   • Increase cash reserves through additional capital injection or shareholder loans.
   • Negotiate extended payment terms with creditors to ease short-term cash outflows.
   • Accelerate receivables collection and tighten credit control to improve cash inflows.

2. Review Cost Structure:

   • Carefully monitor and reduce operating expenses to limit cash burn.
   • Align staffing and overheads with current revenue-generating capacity.

3. Revenue Generation Strategy:

   • Focus on securing contracts or clients to boost revenue quickly.
   • Explore partnerships or joint ventures to leverage external resources.

4. Financial Monitoring:

   • Implement regular financial reporting and cash flow forecasting to detect and manage liquidity risks early.
   • Consider external advisory support to guide financial restructuring if necessary.

5. Capital Structure:

   • Evaluate the possibility of increasing equity capital to provide a buffer for losses and improve solvency.
   • Engage with lenders or investors for potential financing options once operational stability improves.

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Medical Analogy Summary

Think of the company as a patient recently admitted with low vital signs—very low liquidity (“weak pulse”) and insolvency (“deteriorated organ function”). Immediate intervention is needed to stabilize cash flow and strengthen the balance sheet (“boost immune system”) to prevent “financial collapse.” With proper treatment (capital support, cost control, and revenue growth), the company can recover and build resilience.

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