INSIGHT SUPPORT GROUP LTD

Executive Summary

INSIGHT SUPPORT GROUP LTD shows critical liquidity issues with zero current assets and negative net assets, indicating financial distress despite being active. Immediate actions to rebuild cash reserves and restructure liabilities are necessary to restore financial health and viability.

INSIGHT SUPPORT GROUP LTD - Analysis Report

Company Number: 13245174

Analysis Date: 2025-07-20 18:06 UTC

Financial Health Assessment Report for INSIGHT SUPPORT GROUP LTD

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1. Financial Health Score: D

Explanation:
The company exhibits signs of financial distress with negative net current assets and net liabilities as of the latest financial year. While the company remains active, its liquidity position is weak, indicating potential cash flow problems. This score reflects the need for close monitoring and remedial action to restore fiscal health.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Current Assets	0	No liquid or short-term assets to meet liabilities
Current Liabilities	5,448	Short-term debts due within one year
Net Current Assets (Working Capital)	-5,448	Negative working capital indicates liquidity crunch
Net Assets (Shareholders' Funds)	-5,448	Company's total liabilities exceed assets, implying insolvency risk
Average Number of Employees	0	No staff employed, possibly minimal operations
Share Capital	2	Nominal capital, very small equity base

Interpretation:

• The "vital signs" show a company with no current assets (cash, receivables, stock) to cover current liabilities, leading to a working capital deficit.
• Negative net assets imply the company’s total liabilities surpass total assets, a red flag for solvency and financial stability.
• The reduction of current liabilities from £20,000 in 2023 to £5,448 in 2024 is positive but insufficient given zero current assets.
• No employees suggest limited operational activity, possibly a holding or dormant state despite being active legally.

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3. Diagnosis: Financial Condition

The financial "symptoms" reveal a company struggling with liquidity and solvency. The complete absence of current assets as of March 2024 indicates an inability to generate or hold cash or equivalents, threatening day-to-day operations. The negative net assets suggest the company is effectively insolvent on a balance sheet basis, which could lead to creditor pressure or insolvency proceedings if unaddressed.

The company operates in "Other residential care activities" under SIC 87900, which typically requires ongoing operational cash flow to sustain services. The financials imply either a pause in trading or reliance on external funding or shareholder loans not reflected in current assets.

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4. Recommendations to Improve Financial Wellness

• Rebuild Liquidity: Focus on generating or securing cash reserves. This could involve accelerating receivables, reducing payables where possible, or injecting new equity/funding.
• Asset Management: Investigate why current assets are nil—assess if accounts receivable or stock can be reinstated or if cash inflows are halted.
• Cost Control: With zero employees, ensure fixed costs are minimized. Review contractual obligations to reduce liabilities.
• Financial Restructuring: Consider recapitalisation or debt restructuring to improve net assets and solvency position.
• Strategic Review: Evaluate business model viability given current financial distress. Consider pivoting operations or merging with a financially stronger entity.
• Compliance & Reporting: Maintain timely filing to avoid penalties and ensure transparency with creditors and stakeholders.
• Professional Advice: Engage financial and legal advisors promptly to explore insolvency risk mitigation and turnaround possibilities.

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Medical Analogy Summary:

INSIGHT SUPPORT GROUP LTD is currently exhibiting symptoms akin to a patient with severe dehydration and organ stress—its financial "vital signs" (liquidity and solvency) are critically low, putting the company in a state of distress. Immediate intervention is required to restore "healthy cash flow" and rebuild financial "immune strength" to avoid collapse.

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