GOLDFINGER INVESTMENTS LTD

Executive Summary

GOLDFINGER INVESTMENTS LTD is showing early signs of financial distress, primarily due to negative working capital and shareholders’ funds caused by high director loans and short-term liabilities exceeding current assets. Immediate actions to improve liquidity and seek capital injection are recommended to stabilize the company’s financial health and support future growth. Without intervention, the company risks ongoing financial strain despite its current active status.

GOLDFINGER INVESTMENTS LTD - Analysis Report

Company Number: 14849116

Analysis Date: 2025-07-29 16:37 UTC

Financial Health Assessment Report for GOLDFINGER INVESTMENTS LTD

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1. Financial Health Score: D (Below Healthy)

Explanation:
The company exhibits clear signs of financial distress. Key indicators such as net current liabilities and negative shareholders’ funds highlight a fragile liquidity position and an equity deficit. While the company is newly incorporated and micro-sized, its financial "vital signs" indicate symptoms of imbalance that require immediate attention to avoid further deterioration.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	349	Minimal investment in long-term assets; typical for a holding company in early stage.
Current Assets	75,322	Healthy short-term assets, primarily cash or equivalents, which is a positive sign.
Current Liabilities	86,149	High short-term obligations exceeding current assets, indicating liquidity strain.
Net Current Assets (Working Capital)	-10,827	Negative working capital ("symptom of distress") suggests difficulty in meeting short-term debts.
Total Assets Less Current Liabilities	-10,478	Negative net assets confirm liabilities exceed total assets, a critical warning sign.
Shareholders' Funds (Equity)	-13,478	Negative equity indicates the company is "under the weather" financially, relying on director loans.

Additional Notes:

• The entire current liabilities figure includes £86,149 owed as director loans, interest-free and repayable on demand. This represents a significant reliance on internal financing and may mask underlying cash flow constraints.
• The company benefits from micro-entity accounting exemptions, so limited financial disclosures are available.

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3. Diagnosis

GOLDFINGER INVESTMENTS LTD is in its infancy, incorporated less than a year ago, operating as a micro private limited company primarily engaged in holding activities. The company’s financial "pulse" reveals that despite holding a decent level of current assets, it has overextended its short-term liabilities, resulting in negative working capital and shareholders’ deficit. This liquidity mismatch is a symptom of financial distress that could impair operational flexibility.

The director’s loans providing the bulk of the current liabilities show that the business is currently dependent on internal funding to sustain its operations. While this can be a common practice in startups or holding companies, the absence of external capital or profit generation to improve equity positions raises concerns about sustainability without further capital infusion or revenue generation.

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4. Recommendations

1. Improve Liquidity Management:

   • Address the negative working capital by negotiating terms to either extend payables or accelerate receivables if applicable.
   • Consider converting director loans to equity where feasible to strengthen the balance sheet.

2. Capital Injection:

   • Secure additional funding either through equity investment or external loans to reduce reliance on director loans and improve net assets.

3. Financial Monitoring:

   • Implement regular cash flow forecasting to detect and mitigate liquidity crunches early.

4. Strategic Review:

   • As a holding company, evaluate the portfolio and plan for revenue generation or asset acquisition to move towards profitability and positive equity.

5. Compliance and Reporting:

   • Ensure timely filing of accounts and confirmation statements to maintain good standing with Companies House.

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