GLOBAL STUDY&CAREER CONSULTANCY LTD

Executive Summary

GLOBAL STUDY&CAREER CONSULTANCY LTD currently shows signs of financial distress with negative net assets and worsening liquidity. Immediate action to improve cash flow, control costs, and potentially inject capital is crucial to restore financial health. With proactive management, the company can stabilize and improve its financial outlook.

GLOBAL STUDY&CAREER CONSULTANCY LTD - Analysis Report

Company Number: 12394609

Analysis Date: 2025-07-20 19:17 UTC

Financial Health Assessment: GLOBAL STUDY&CAREER CONSULTANCY LTD

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress with net current liabilities worsening from £24,970 in 2023 to £60,434 in 2024. Negative net assets indicate that liabilities exceed assets, a critical "symptom" signaling insolvency risk. Despite this, the company remains active, with a sole director/owner controlling 100% equity and voting rights, indicating strong governance but limited financial buffer.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	34,193	127,927	Sharp decrease in liquid and short-term assets, reducing liquidity "reserves."
Current Liabilities	94,627	152,897	High short-term debts, although reduced, still significantly exceed current assets.
Net Current Assets	-60,434	-24,970	Negative working capital, worsening over the year, indicating liquidity distress.
Net Assets (Shareholders’ Funds)	-60,434	-24,970	Negative net worth, liabilities outweigh assets, a serious “health” issue for the business.
Share Capital	1.00	1.00	Nominal share capital, typical for micro-entities but provides limited financial cushion.
Number of Employees	1	1	Very small operation, limiting scalability and diversification.

Interpretation:
The company's "vital signs" reveal a declining liquidity position and an increasing burden of short-term liabilities relative to assets. Negative net assets suggest insolvency symptoms, which require urgent attention to avoid worsening financial health.

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3. Diagnosis

The financial "symptoms" exhibited by GLOBAL STUDY&CAREER CONSULTANCY LTD indicate the company is currently in a vulnerable state:

• Liquidity distress: Negative net current assets indicate the company cannot cover its short-term liabilities with its available liquid assets. This "cash flow" weakness poses an immediate operational risk.

• Solvency concerns: Negative net assets mean total liabilities exceed total assets, signaling potential insolvency. This undermines creditor confidence and limits the ability to raise funds.

• Declining asset base: A significant drop in current assets from 2023 to 2024 weakens the company's financial cushioning.

• Small scale and concentration risk: With only one employee and a single controlling shareholder/director, operational risks are concentrated and the company lacks diversification.

While the company remains active and compliant with filing requirements, the financial data reveals "symptoms of distress" that should be addressed promptly to prevent further deterioration.

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4. Recommendations

To improve financial wellness and restore "health," consider the following actions:

• Liquidity management:

  • Seek to improve cash flow by accelerating debtor collections and negotiating longer payment terms with creditors.
  • Explore short-term financing options (e.g., overdraft, invoice financing) to cover immediate working capital gaps.

• Cost control:

  • Review operating expenses thoroughly to identify reductions or efficiencies, especially given the small scale of operations.

• Capital infusion:

  • Consider injecting additional equity capital to improve net assets and provide a financial buffer. The current share capital of £1 is minimal.

• Financial restructuring:

  • Engage professional advice to evaluate restructuring options for liabilities, including potential negotiations with creditors.

• Business strategy review:

  • Assess the business model and revenue generation to ensure sustainable income streams.
  • Explore partnerships or diversification to reduce operational concentration risk.

• Regular monitoring:

  • Implement monthly financial reviews to monitor key liquidity and solvency indicators before they become critical.

Early intervention can improve prognosis significantly, turning around the company’s financial health and ensuring long-term viability.

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