INVISIBLE INC INSTALLATIONS LTD

Executive Summary

INVISIBLE INC INSTALLATIONS LTD is facing critical financial distress with negative net assets and working capital deficits indicating insolvency. The company is currently in the process of winding up, reflecting a severe liquidity and solvency crisis. Immediate financial intervention and professional advice are essential to manage the winding-up process or pursue potential rescue options.

INVISIBLE INC INSTALLATIONS LTD - Analysis Report

Company Number: 14078146

Analysis Date: 2025-07-29 19:24 UTC

Financial Health Assessment for INVISIBLE INC INSTALLATIONS LTD (Year ending 31 December 2024)

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1. Financial Health Score: D (Distressed)

Explanation:
The company exhibits clear symptoms of financial distress in its latest year. The net current liabilities and negative net assets indicate that the company’s short-term obligations exceed its available liquid resources, a critical warning sign akin to a patient showing signs of acute systemic shock. This deteriorated position contrasts sharply with prior years of positive net assets, signaling a recent and significant decline in financial health.

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2. Key Vital Signs (Core Financial Metrics)

Metric	2024 (Latest)	2023	Interpretation
Current Assets	£230	£33,587	Cash and short-term assets drastically reduced; very low buffer to cover immediate debts.
Current Liabilities	£752	£24,177	Short-term debts decreased but still exceeds current assets, causing liquidity pressure.
Net Current Assets (Working Capital)	-£522	£9,808	Negative working capital implies inability to meet short-term obligations comfortably.
Net Assets (Shareholders Funds)	-£522	£9,808	Equity has turned negative, indicating insolvency on a balance sheet basis.
Average Number of Employees	1	2	Reduced headcount may reflect cost-cutting or operational downsizing.

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3. Symptoms Analysis (What the Numbers Reveal)

• Liquidity Crisis: The sharp drop in current assets from £33,587 to just £230 coupled with current liabilities of £752 results in a working capital deficit of £522. This is analogous to a patient whose vital fluid levels have dangerously dropped, putting immediate survival at risk.

• Balance Sheet Insolvency: Negative net assets mean total liabilities exceed total assets, suggesting the company’s financial "heart" is weak or failing, raising significant concerns over its ability to continue operations without external intervention.

• Operational Contraction: The average number of employees halved, suggesting reduced business activity or cost-cutting measures. This may be a reaction to the financial stress, but also potentially limits the company’s capacity to generate revenue.

• No Audit or Profit & Loss Disclosure: The company benefits from micro-entity exemptions, but lack of detailed profit/loss information limits insight into operational cash flows and profitability trends.

• Winding Up in Process: The accounts note the company is "in the process of being wound up," indicating formal steps towards closure or liquidation, reinforcing the diagnosis of severe distress.

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4. Diagnosis: Overall Financial Condition

INVISIBLE INC INSTALLATIONS LTD is currently in a financial critical state, exhibiting signs of insolvency and liquidity strain. The company’s negative net assets and working capital deficit are red flags indicating it is unable to fully meet its short-term liabilities with available assets. The company’s ongoing winding-up process confirms that it is undergoing a terminal financial condition akin to a patient in critical care requiring urgent intervention.

Without significant financial restructuring, capital injection, or operational turnaround, the prognosis points toward an imminent cessation of business activities.

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5. Prognosis: Future Financial Outlook

• Short Term: Without additional funding or disposal of liabilities, the company will likely continue to struggle to meet obligations, risking creditor action and forced liquidation.

• Medium Term: The ongoing winding-up process suggests the company may soon cease trading and be formally dissolved unless a rescue plan is implemented.

• Long Term: Recovery is unlikely without new capital, restructuring, or a sale of business assets. The current financial indicators predict a poor long-term viability.

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6. Recommendations: Actions to Improve Financial Wellness

• Immediate Cash Flow Boost: Seek emergency funding or shareholder loans to cover immediate liabilities and stabilize liquidity.

• Engage Professional Insolvency Advice: Consult insolvency practitioners to explore options such as Company Voluntary Arrangement (CVA), administration, or orderly wind-up to protect stakeholder interests.

• Cost Rationalization: Evaluate all expenses for possible reductions. The drop in employee numbers suggests some action already taken; further scrutiny is essential.

• Asset Review: Identify any non-core or underutilized assets that could be sold to improve cash position.

• Transparent Communication: Keep creditors and shareholders informed about financial challenges and proposed remedial actions to maintain trust.

• Strategic Review: If continuing operations is viable, develop a robust business plan focusing on sustainable revenue generation and expense control.

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Executive Summary