IMPROVING HEALTHCARE SOLUTIONS LTD

Executive Summary

IMPROVING HEALTHCARE SOLUTIONS LTD is currently facing significant financial challenges characterized by negative net assets and worsening liquidity, indicating a financial health grade of D. Immediate cash flow management, creditor negotiations, and potential capital injection are critical to stabilizing the business and preventing insolvency. Without swift intervention, the company’s financial condition may deteriorate further.

IMPROVING HEALTHCARE SOLUTIONS LTD - Analysis Report

Company Number: 13579088

Analysis Date: 2025-07-29 15:54 UTC

Financial Health Assessment Report for IMPROVING HEALTHCARE SOLUTIONS LTD

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1. Financial Health Score: D

Explanation:
The company exhibits significant financial distress, with persistent negative net assets and worsening working capital over the past three years. This signals ongoing liquidity challenges and an eroding financial foundation, which warrants concern and urgent corrective action.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	2022 (£)	Interpretation
Current Assets	1,176	506	506	Minimal cash and short-term assets; slight rise but still very low
Current Liabilities	7,031	3,861	3,861	Increasing short-term debts, more than 3x current assets in 2024
Net Current Assets	-5,855	-3,355	-3,355	Negative working capital, worsening year-on-year, indicating cash flow stress
Net Assets (Shareholders’ Funds)	-5,855	-4,755	-4,755	Negative equity, meaning liabilities exceed assets; a symptom of financial distress
Average Employees	0	0	-	No employees, possibly indicating no active trading operations

Interpretation of Vital Signs:
The company’s "vital signs" resemble a patient with a weak pulse—its liquidity (cash and equivalents) is low, and its immediate obligations are increasing, creating a "symptom" of cash flow insufficiency. The persistent negative net assets confirm a balance sheet "disease" where debts outweigh assets, threatening solvency.

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3. Diagnosis

IMPROVING HEALTHCARE SOLUTIONS LTD is currently in a precarious financial condition. Despite being operational (active status), the company shows clear symptoms of distress:

• Liquidity crisis: The working capital deficit has nearly doubled from 2023 to 2024, indicating escalating difficulty in meeting short-term obligations.
• Eroded equity: The shareholder funds are deeply negative, reflecting accumulated losses or unrecouped expenses.
• No operational workforce: The absence of employees suggests that business activities may be minimal or suspended, potentially impacting revenue generation.
• No audit or profit & loss filed: While compliant under micro-entity reporting exemptions, the lack of detailed profit and loss data limits insight into operational performance but raises a flag on transparency and financial monitoring.

These factors combined present a diagnosis of financial distress with a risk of insolvency if corrective measures are not implemented promptly.

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4. Recommendations

To restore financial health and avoid progression to insolvency, the company should consider the following actions:

• Immediate Cash Flow Management:
  Perform a detailed cash flow forecast to understand timing of inflows and outflows. Explore ways to accelerate receivables, defer non-essential payments, or negotiate extended credit terms with suppliers.

• Liability Restructuring:
  Engage creditors to restructure or refinance short-term liabilities to ease pressure on working capital.

• Capital Injection:
  Seek additional equity investment or shareholder loans to bolster net assets and improve solvency ratios.

• Operational Review:
  Assess business activities to determine if the company should restart operations, pivot the business model, or consider orderly winding down to preserve value.

• Financial Reporting Enhancement:
  Even though the company qualifies for micro-entity exemptions, preparing regular internal management accounts and profit & loss statements will aid in monitoring financial “health” and making informed decisions.

• Director’s Vigilance:
  Directors should be alert to insolvency risks and seek professional advice early to fulfill fiduciary duties and avoid wrongful trading.

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