GOLDBULLION DEALERS LIMITED

Executive Summary

GOLDBULLION DEALERS LIMITED is currently facing financial distress marked by negative working capital and net assets in its latest financial year, indicating liquidity and solvency challenges. Immediate actions to improve cash flow, reduce costs, and potentially raise new capital are essential to restore financial health and ensure ongoing viability. Without intervention, the company risks further deterioration of its financial condition.

GOLDBULLION DEALERS LIMITED - Analysis Report

Company Number: 14251707

Analysis Date: 2025-07-20 15:47 UTC

Financial Health Assessment for GOLDBULLION DEALERS LIMITED

---

1. Financial Health Score: D

Explanation:
The company shows signs of financial distress in its most recent year, with net current liabilities and negative net assets reported for the year ending May 2024. Previously, the company demonstrated a positive net asset position and working capital. The sudden deterioration suggests liquidity challenges and potential solvency concerns. While still operational, this indicates the business is experiencing a cash flow "ailment" that needs urgent attention to avoid further decline.

---

2. Key Vital Signs

Metric	2024	2023	Interpretation
Fixed Assets	£1,465	£1,465	Stable asset base, minimal long-term investment.
Current Assets	£8,341	£35,652	Significant drop (~77%), indicating shrinking liquid resources or receivables.
Current Liabilities	£11,014	£33,755	Significant drop (~67%), but still exceeds current assets in 2024.
Net Current Assets (Working Capital)	-£2,673	£1,897	Negative working capital in 2024 signals liquidity stress—"healthy cash flow" is lacking.
Total Net Assets	-£1,208	£3,362	Negative equity in 2024 implies liabilities exceed assets, a "symptom of financial distress."
Shareholders Funds	-£1,208	£3,362	Equity erosion, indicating losses absorbed or capital withdrawals.

Additional Notes:

• The company employs 2 people, stable workforce.
• Classified as a Micro-entity, so limited disclosure but still critical to monitor liquidity.
• Directors are actively involved with significant control, indicating strong governance presence.

---

3. Diagnosis

Underlying Business Health Condition:
GOLDBULLION DEALERS LIMITED has transitioned from a modestly stable financial position in 2023 to a precarious state in 2024. The key "vital sign" of working capital has flipped from positive to negative, suggesting that short-term obligations now outweigh liquid assets. This is a classic "symptom" of cash flow difficulties, which could stem from reduced sales, increased costs, or poor receivables management. Negative net assets denote that the company’s total liabilities exceed its assets—akin to a patient experiencing organ failure in financial terms.

While the company remains active and has not defaulted on filing obligations, these signals suggest the business is currently under financial strain, risking insolvency if the trend continues. The stable fixed asset base indicates no major capital investment or asset disposals. The drop in current assets is worrisome and points toward either shrinking cash reserves or inventory/debtors being converted less efficiently.

---

4. Recommendations

To improve financial wellness and restore a healthy "financial pulse," GOLDBULLION DEALERS LIMITED should consider the following steps:

• Improve Cash Flow Management: Tighten credit control and accelerate collection of receivables to boost current assets. Consider negotiating longer payment terms with suppliers to ease current liabilities pressure.
• Cost Reduction: Review operating expenses and reduce non-essential costs to conserve cash.
• Capital Injection: Explore options for equity funding or shareholder loans to rebuild shareholder funds and improve net asset position.
• Sales and Revenue Growth: Increase marketing efforts or diversify product offerings to enhance income streams and stabilize cash inflows.
• Financial Monitoring: Implement frequent cash flow forecasting and financial health reviews to detect early warning signs and take corrective actions swiftly.
• Professional Advice: Engage with financial advisors or turnaround specialists to develop a robust recovery plan, especially if liquidity issues persist.

---