INTERNATIONAL SOCIAL WORK LTD

Executive Summary

INTERNATIONAL SOCIAL WORK LTD is in its infancy and currently exhibits financial strain characterized by negative net assets and low liquidity, sustained primarily by director loans. Immediate capital infusion and improved cash flow management are essential to stabilise the company's financial health and support operational launch. Without intervention, the risk of insolvency increases, but with strategic financial management, there is potential for recovery and growth.

INTERNATIONAL SOCIAL WORK LTD - Analysis Report

Company Number: 15199581

Analysis Date: 2025-07-29 21:00 UTC

Financial Health Assessment: INTERNATIONAL SOCIAL WORK LTD

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1. Financial Health Score:

Grade: D

Explanation:
The company shows significant financial distress with negative net current assets and net liabilities exceeding total assets. While it is an early-stage company (incorporated October 2023), the financial "vital signs" indicate symptoms of liquidity strain and undercapitalisation, warranting close monitoring and corrective action.

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2. Key Vital Signs and Interpretation:

Metric	Value (£)	Interpretation
Cash at Bank	136	Critically low "cash flow pulse" indicating poor liquidity and limited immediate funds for operations.
Current Liabilities	18,832	Significant short-term debts due soon; a potential "symptom of distress" if not managed or refinanced.
Net Current Assets	(18,696)	Negative working capital - current liabilities exceed current assets by this amount, showing a liquidity crunch.
Total Assets Less Current Liabilities	(18,696)	Negative, indicating total liabilities outweigh total assets; a worrying "diagnostic marker" of insolvency risk.
Net Assets / Shareholders’ Funds	(18,696)	Negative equity signifies accumulated losses or underfunding; the company is "under the weather" financially.
Called Up Share Capital	1,000	Minimal capital invested by shareholders; signals limited financial buffer.
Profit and Loss Account	(19,696)	Accumulated losses reflected here, indicating the company has yet to generate profits or has incurred expenses exceeding income.
Employees	0	No staff employed yet; possibly in pre-operational or developmental phase.

Additional Notes:

• The director's current account owes £17,992 to the company, which may represent loans or funds advanced by the director to support operations.
• The company holds no fixed assets, indicating no tangible capital investment yet.

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3. Diagnosis:

The financial "symptoms" of INTERNATIONAL SOCIAL WORK LTD suggest it is in an early developmental stage but showing signs of financial strain. The negative net working capital and net asset position indicate the company is currently "cash starved" and relies heavily on director funding to stay afloat. This is typical for startups but is a red flag if prolonged without substantial capital infusion or revenue generation.

The absence of employees and minimal cash on hand further point to a company not yet fully operational or generating steady income. The director’s loans may be a temporary "life support" but are not a sustainable financing method.

Overall, the company is in a fragile financial state, akin to a patient with low blood pressure and weak pulse—requiring immediate intervention to avoid worsening.

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4. Recommendations:

Immediate Actions:

• Capital Injection: Secure additional equity or external funding to strengthen the capital base and improve liquidity. This will provide a healthier "cash flow pulse" and working capital buffer.
• Cash Flow Management: Develop a detailed cash flow forecast to manage short-term liabilities and avoid insolvency risks. Prioritize payments and negotiate terms with creditors if possible.
• Revenue Generation: Accelerate efforts to commence operations and generate income, reducing dependence on director loans. Consider strategic partnerships or contracts in the educational and residential care sectors (aligned with SIC codes).

Medium-Term Actions:

• Cost Control: Monitor and control operational expenses closely once active to prevent further losses.
• Financial Reporting: Continue timely filing of accounts and returns to maintain transparency and compliance.
• Governance: Strengthen financial governance, possibly appoint a finance advisor to assist with budgeting and strategic financial planning.

Long-Term Outlook:

• Building a sustainable business model with positive net assets and healthy working capital will be critical.
• Monitor liquidity and profitability indicators regularly to catch any early signs of financial distress.

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