GO EXECUTIVE LTD

Executive Summary

GO EXECUTIVE LTD is a young company currently exhibiting liquidity and solvency challenges, with negative working capital and net assets indicating early financial distress. Immediate actions to improve cash flow, manage debt, and enhance operational effectiveness are critical to restore financial health and ensure sustainable growth.

GO EXECUTIVE LTD - Analysis Report

Company Number: 14590269

Analysis Date: 2025-07-20 16:00 UTC

Financial Health Assessment for GO EXECUTIVE LTD
(as at 31 January 2024)

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1. Financial Health Score: D

Explanation:
GO EXECUTIVE LTD is showing signs of financial strain. The company’s net liabilities, negative shareholders’ funds, and working capital deficit indicate early symptoms of financial distress. While the business has tangible fixed assets, the current cash and liquid assets are minimal, which may impair operational agility. The company is young (incorporated in 2023), and these issues may reflect typical start-up challenges but require prompt corrective action to avoid worsening health.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	62,462	Tangible assets mainly plant & machinery; solid asset base for a new company.
Current Assets	2	Alarmingly low liquid assets; insufficient cash reserves for day-to-day operations.
Current Liabilities	14,455	Short-term debts due within one year; exceeds current assets leading to working capital deficit.
Net Current Assets	-14,453	Negative working capital—a key symptom of liquidity issues ("poor pulse of cash flow").
Long-term Liabilities	51,111	Bank loans falling due after one year; significant debt relative to asset base.
Net Assets (Equity)	-3,102	Negative net assets indicate liabilities exceed total assets; a worrying sign of financial health.
Share Capital	2	Nominal equity capital invested by shareholders; minimal capital buffer.
Profit & Loss Reserve	-3,104	Accumulated losses or deficit; no retained earnings to cushion financial shocks.

Additional Notes:

• No employees reported during the year, indicating a possible asset-heavy but lean operational model.
• The company has opted out of filing a profit & loss account in public documents, limiting insight into profitability or revenue trends.
• Directors have changed recently with a new director appointed in January 2025, which may indicate management restructuring.

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3. Diagnosis

GO EXECUTIVE LTD displays early symptoms of financial distress, primarily liquidity and solvency challenges:

• Liquidity Concern ("Weak Pulse"): Current assets (£2) are negligible compared to current liabilities (£14,455), resulting in a net current liability position. This means the company lacks readily available cash or assets easily convertible to cash to meet its short-term obligations, risking payment delays or defaults.

• Solvency Concern ("Negative Net Worth"): The company’s total liabilities exceed its total assets by £3,102, showing negative equity. This is a red flag signifying that if the company had to settle all debts today, it would be insolvent.

• Debt Burden ("Heavy Load"): With over £51,000 in long-term bank loans and minimal equity, the company carries a considerable debt burden relative to its asset base. Interest and principal repayments may strain cash flows further.

• Early Stage Business ("Growing Pains"): Being incorporated in 2023 and reporting no employees yet, the company may still be investing in fixed assets and setting up operations. Start-ups often report losses and negative net assets initially but must reach positive cash flow and profitability quickly.

• Governance Changes: Recent change in directors and control may reflect efforts to stabilize or restructure the company’s financial and operational strategy.

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4. Recommendations

To improve financial health and avoid deeper distress, GO EXECUTIVE LTD should consider:

1. Improve Liquidity ("Resuscitate Cash Flow")

   • Increase cash reserves through short-term financing, shareholder loans, or equity injection.
   • Accelerate receivables collection or negotiate extended payment terms with creditors to ease cash flow pressures.

2. Debt Management ("Lighten the Load")

   • Engage with lenders to restructure or refinance bank loans to reduce immediate repayment obligations.
   • Explore debt-to-equity swaps with investors to strengthen the capital base.

3. Operational Review ("Diagnose Business Model")

   • Analyze revenue streams and cost structures carefully to identify profitability bottlenecks.
   • Consider hiring or contracting operational staff to drive business activities and generate turnover.

4. Financial Reporting and Transparency ("Monitor Vital Signs")

   • Begin preparing and reviewing full profit and loss statements internally to monitor performance trends.
   • Regular financial health check-ups will allow early detection of worsening symptoms.

5. Strategic Leadership ("Strengthen Immune System")

   • Ensure active involvement of directors and significant controllers in steering financial turnaround.
   • Consider external advisory support for business planning and financial restructuring.

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