GNR8 SOLUTIONS LIMITED

Executive Summary

GNR8 SOLUTIONS LIMITED has experienced a significant decline in financial health in 2023, shifting from a stable micro-entity to a position of negative net assets and working capital. The company is currently facing liquidity issues and potential insolvency risks. Immediate financial management actions and possible capital injections are essential to improve its financial wellness and ensure future viability.

GNR8 SOLUTIONS LIMITED - Analysis Report

Company Number: 13799881

Analysis Date: 2025-07-29 13:40 UTC

Financial Health Assessment: GNR8 SOLUTIONS LIMITED (as of 31 December 2023)

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1. Financial Health Score: D

Explanation:
The company displays clear symptoms of financial distress in its latest financial year. The net current assets have turned negative, net assets have declined sharply into negative territory, and shareholders’ funds are also negative. This indicates the company is currently insolvent on a balance sheet basis, which is a serious warning sign. The previous two years showed positive net assets and working capital, so this decline signals a recent deterioration in financial health.

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2. Key Vital Signs

Metric	2023 Value	2022 Value	Interpretation
Current Assets	£184	£6,710	Cash and receivables drastically decreased
Current Liabilities	£540	£1,362	Short-term debts reduced slightly but still > assets
Net Current Assets (Working Capital)	-£356	£5,348	Negative working capital = liquidity crisis
Total Net Assets	-£356	£3,890	Negative equity signals insolvency
Shareholders Funds	-£356	£3,890	Owners’ stake wiped out, reflecting accumulated losses
Employees	0	0	No staff, potentially limiting operational capacity

Interpretation:

• Healthy cash flow and liquidity are indicated by positive net current assets, which were present in 2022 but reversed dramatically in 2023.
• The negative net current assets in 2023 are a symptom of distress, suggesting the firm does not have enough short-term assets to cover its short-term liabilities.
• A negative net asset position (negative equity) is akin to a patient whose vital organs are failing—the company’s financial stability is compromised.

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3. Diagnosis: Financial Condition Summary

GNR8 SOLUTIONS LIMITED has moved from a stable micro-entity with positive net assets and working capital in 2022 to a precarious position of negative net assets and working capital in 2023. The sharp drop in current assets (from £6,710 to £184) combined with current liabilities exceeding current assets indicates the company may be facing cash flow problems or has incurred significant losses. The absence of employees suggests a lean or possibly non-operational status, which may contribute to limited revenue generation.

The micro-entity accounting exemptions limit detailed disclosures, but the balance sheet alone shows the company is currently experiencing financial strain. The controlling shareholder has full ownership and voting rights, which may allow for decisive management actions but also concentrates control risk.

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4. Recommendations: Steps to Improve Financial Wellness

1. Immediate Cash Flow Management:

   • Conduct a thorough review of cash inflows and outflows to identify and plug leaks.
   • Explore short-term financing options if necessary to cover immediate liabilities.

2. Cost Restructuring:

   • Evaluate fixed and variable costs to reduce unnecessary expenses.
   • Consider strategies to generate revenue or diversify income streams.

3. Capital Injection:

   • The controlling shareholder could consider injecting additional equity capital to restore positive net assets and improve solvency.

4. Financial Monitoring:

   • Implement regular financial reporting and forecasting to detect early signs of distress.
   • Engage a financial advisor or turnaround specialist if necessary.

5. Strategic Review:

   • Assess business model viability given current financial distress.
   • Explore potential restructuring, merger, or sale if recovery seems unlikely.

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Medical Analogy Summary

GNR8 SOLUTIONS LIMITED’s financial "vital signs" reveal symptoms of "acute financial distress" with a "negative working capital" and "insolvent balance sheet" akin to a patient showing signs of organ failure. Without immediate intervention—such as cash infusion, cost control, and strategic management—the prognosis is poor. Restoring financial health will require urgent and sustained treatment to reverse these symptoms and stabilize the company.

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