IMPOSSIBLE PROBLEMS SOLVED LIMITED

Executive Summary

IMPOSSIBLE PROBLEMS SOLVED LIMITED currently exhibits signs of financial distress, with negative net assets and working capital deficit indicating insolvency risk. Immediate capital support and stringent cash flow management are critical to stabilizing the company’s financial health. With proactive measures, the company can improve liquidity and work towards sustainable operations.

IMPOSSIBLE PROBLEMS SOLVED LIMITED - Analysis Report

Company Number: 14977059

Analysis Date: 2025-07-20 14:49 UTC

Financial Health Assessment for IMPOSSIBLE PROBLEMS SOLVED LIMITED (As of 31 December 2024)

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1. Financial Health Score: D

Explanation:
The company shows a negative net asset position of £616, indicating it is technically insolvent on a balance sheet basis. This is a serious symptom of financial distress akin to a patient exhibiting signs of organ failure. Although it is a micro-entity with minimal financial activity and one employee, the negative equity base signals underlying issues that require urgent attention to restore financial health.

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2. Key Vital Signs (Critical Financial Metrics):

Metric	Value	Interpretation
Fixed Assets	£42	Very low long-term asset base; typical for a start-up or micro-entity without significant investments.
Current Assets	£42	Extremely low liquid or short-term resources to cover immediate obligations.
Current Liabilities	£700	Short-term debts exceed current assets by £658, indicating working capital deficit (negative).
Net Current Assets	-£658	Negative working capital is a symptom of liquidity stress; the business may struggle to meet short-term obligations.
Total Assets Less Current Liabilities	-£616	Negative figure shows the company’s liabilities exceed assets, a clear sign of insolvency.
Net Assets / Shareholders’ Funds	-£616	Negative equity means the company’s capital structure is impaired.
Number of Employees	1	Minimal payroll burden; however, limited human resources may restrict operational capability.

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3. Diagnosis: Financial Condition and Underlying Business Health

The financial "vital signs" indicate a company in a fragile and unhealthy state. The negative net assets and working capital deficit are symptoms of financial distress, similar to a patient with low blood pressure and insufficient oxygenation — the company lacks the necessary "financial oxygen" (cash and liquid assets) to sustain normal operations without external support or rapid corrective measures.

Given the company’s young age (incorporated mid-2023) and micro-entity status, this negative financial position could be due to initial start-up costs, investment in intangible assets, or early losses before revenue generation. However, without positive cash flow or capital injection, the risk of insolvency or inability to meet obligations is elevated.

The fact that the sole director and controlling shareholder is actively involved suggests good governance potential, but also points to a dependency on this individual for financial rescue or strategic direction.

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4. Recommendations: Actions to Improve Financial Wellness

• Immediate Capital Injection: Inject fresh equity or secure short-term financing to cover the working capital deficit. This will stabilize the balance sheet and provide a financial "boost" to support operations.

• Cash Flow Management: Implement strict cash flow monitoring to avoid liquidity crises. Prioritize collection of receivables and negotiate payment terms with creditors.

• Cost Control: Review and minimize discretionary expenses to conserve cash, especially given the single-employee structure.

• Business Model Review: Assess revenue generation plans critically to ensure the business can transition from initial losses to profitability. Explore additional revenue streams or partnerships.

• Regular Financial Review: Establish monthly financial health checks ("vital signs monitoring") to detect early symptoms of distress and enable proactive management.

• Seek Professional Advice: Engage with financial advisors or insolvency practitioners early to explore restructuring options if needed.

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