Company Number: 13109120

Analysis Date: 2025-07-20 18:07 UTC

Financial Health Assessment for INPG LIMITED

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1. Financial Health Score: D (Weak Financial Health)

Explanation:
INPG LIMITED shows persistent net liabilities and negative shareholders' funds over the last several years, indicating a financial condition analogous to a patient with chronic illness that has not yet stabilized. The company’s working capital is negative in the latest period, and total net assets have deteriorated significantly, signaling symptoms of financial distress. This grade reflects the urgent need for intervention to avoid further deterioration.

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2. Key Vital Signs (Critical Financial Metrics)

Metric	2024 (£)	Interpretation
Fixed Assets	0	Total disappearance of fixed assets from previous year; may indicate asset disposal or write-offs, a negative sign for asset base.
Current Assets	1,281	Very low level of liquid assets; "weak pulse" in cash and receivables.
Current Liabilities	4,900	Short-term debts exceed current assets, creating a liquidity crunch.
Net Current Assets (Working Capital)	-3,619 (1,281 - 4,900)	Negative working capital; symptoms of cash flow problems and inability to meet short-term obligations.
Total Assets Less Current Liabilities	-71	Small negative value, indicating liabilities slightly exceed assets.
Creditors Due After One Year	4,900	Presence of long-term liabilities, potentially increasing financial strain.
Net Assets (Shareholders’ Funds)	-5,451	Negative equity; company is "underweight" financially, indicating accumulated losses or liabilities greater than assets.
Average Employees	0	No staff employed; could be a symptom of reduced operational activity.

Note: In prior years (2021-2023), net assets were also negative, but the 2024 figures show a worsening trend.

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3. Diagnosis: Financial Condition Assessment

• Liquidity Strain: Negative working capital indicates the company currently lacks the "healthy blood flow" of cash and liquid assets to cover immediate debts. This is a critical symptom of distress that could impede day-to-day operations.
• Solvency Concerns: Negative net assets and shareholders’ funds suggest the company’s liabilities exceed its assets, akin to a patient with a deficit in vital organ function. This reflects accumulated losses or unmanageable debt.
• Asset Base Erosion: The disappearance of fixed assets from £120,000 in 2023 to zero in 2024 signals a deterioration or disposal of core business resources, possibly due to financial pressure.
• Operational Activity: The average number of employees has dropped to zero, indicating either the company is dormant in operations or outsourcing all functions, potentially limiting revenue generation.
• Ownership and Control: Mr Julius Nussbaum holds majority control and is the current director, suggesting centralized decision-making which can be a strength if used to implement corrective measures.
• Industry Context: As a real estate agency (SIC 68310), the company operates in a sector sensitive to market fluctuations, requiring stable capital and cash flow to survive periods of low sales or lettings.

Overall, the company exhibits the symptoms of financial strain that, if untreated, could lead to insolvency or forced liquidation.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Immediate Cash Flow Management: Implement stringent cash management controls to improve liquidity. Consider negotiating extended payment terms with creditors and accelerating receivables collection to stabilize working capital.
• Asset Review and Recovery: Assess the reasons behind fixed asset disposal. Explore options to recover or reinvest in assets that can generate revenue, as a healthy "organ system" (asset base) is essential for sustainability.
• Debt Restructuring: Engage with creditors to restructure existing debts, especially the long-term £4,900 liability, to reduce immediate financial burden and improve solvency.
• Operational Strategy: Evaluate business operations to identify cost-saving opportunities or revenue-enhancing initiatives. Consider strategic partnerships or outsourcing to reduce overheads while maintaining market presence.
• Capital Injection: Explore possibilities for fresh equity investment or shareholder loans to restore positive net assets and provide a financial buffer.
• Financial Monitoring: Establish regular financial health monitoring akin to routine medical checkups, including monthly cash flow forecasts and balance sheet reviews to detect early signs of distress.
• Professional Advice: Engage financial advisors or insolvency practitioners proactively to design a turnaround plan and avoid crisis.

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