GRAPHENE-BSM LTD

Executive Summary

GRAPHENE-BSM LTD is currently in a financially distressed state with persistent negative net assets and no turnover in the latest year, indicating serious operational and balance sheet challenges. Immediate capital injection and strategic action are required to restore financial health and prevent insolvency risk. The company remains compliant with filings but needs urgent focus on revenue revival and cost management to improve its outlook.

GRAPHENE-BSM LTD - Analysis Report

Company Number: 12578427

Analysis Date: 2025-07-29 18:47 UTC

Financial Health Assessment for GRAPHENE-BSM LTD

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1. Financial Health Score: D

Explanation:
GRAPHENE-BSM LTD shows persistent negative net assets over the last several years with increasing losses and no significant turnover in the latest financial year. The company's balance sheet reveals a state akin to a patient suffering from chronic malnutrition—long-term financial distress without recovery signs. While the company is still active and compliant with filing deadlines (a positive "vital sign"), the lack of profitability and negative equity are serious symptoms of financial strain.

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2. Key Vital Signs

Metric	Latest Value (2024)	Interpretation
Turnover	£0 (no sales reported in 2024)	No revenue generation indicates halted or severely reduced commercial activity.
Profit / (Loss) for Period	-£1,074	Ongoing losses indicate inability to cover even minimal costs.
Net Assets (Equity)	-£11,123	Negative net assets indicate liabilities exceed assets — a sign of insolvency risk.
Current Liabilities	£11,123	Short-term obligations that must be met promptly; fully offset by liabilities.
Share Capital	£100	Minimal capital base, insufficient to absorb losses or fund growth.
Employees	2	Very small team, indicating micro entity status and limited operational capacity.
Filing Status	Up to date	No overdue filings suggests good compliance but does not offset financial weaknesses.

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3. Diagnosis

GRAPHENE-BSM LTD’s financial health shows chronic distress characterized by:

• Negative equity over multiple years: The company’s liabilities exceed its assets persistently from 2021 through 2024, signaling balance sheet insolvency. This is akin to a patient with a long-term deficiency condition that impairs recovery.

• No turnover in the latest year: Turnover dropped to zero in 2024, indicating business activity has stalled or ceased, which is a critical symptom of operational distress.

• Sustained losses: Although losses are currently small (£1,074), absence of revenue and negative equity suggest no profitable operations or asset base to sustain the business.

• Small capital and resources: Share capital of just £100 and two employees limit the company’s ability to invest or absorb shocks.

• No audit requirement and micro entity status: While these reduce compliance costs, they may also mean less rigorous financial scrutiny, potentially masking deeper issues.

Overall, the company resembles a patient with a chronic illness that requires urgent intervention to avoid collapse. Without corrective measures, the risk of insolvency or forced liquidation increases.

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4. Recommendations

To improve financial wellness, GRAPHENE-BSM LTD should consider the following steps, akin to a treatment plan:

1. Inject Capital or Raise Funds:
   Infuse additional equity or secure debt financing to restore positive net assets and provide operational breathing room.

2. Revive Revenue Streams:
   Develop and implement a sales and marketing strategy to restart income generation, focusing on core IT consultancy and software development services.

3. Cost Control Measures:
   Review and reduce fixed and variable costs to limit cash burn during the turnaround phase.

4. Financial Restructuring:
   Engage with creditors to renegotiate terms if possible, and explore restructuring options to manage liabilities.

5. Strategic Review:
   Assess business model viability, market positioning, and operational effectiveness. Consider pivoting or partnerships if current offerings are not generating demand.

6. Regular Financial Monitoring:
   Implement monthly financial reviews and cash flow forecasting to detect early warning signs and adjust course as needed.

7. Seek Professional Advice:
   Given the persistent negative equity, consulting insolvency practitioners or turnaround specialists early can help design a sustainable recovery plan.

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