IQCP IV C2 LIMITED

Executive Summary

IQCP IV C2 LIMITED is currently in a fragile financial state with severe liquidity shortfalls and negative net assets, largely financed through associate loans. While it remains operational and compliant administratively, the company depends heavily on future gains to restore financial health. Immediate actions to strengthen capital, improve liquidity, and clarify operational plans are critical to avoid worsening distress.

IQCP IV C2 LIMITED - Analysis Report

Company Number: 13250129

Analysis Date: 2025-07-20 14:58 UTC

Financial Health Assessment for IQCP IV C2 LIMITED

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1. Financial Health Score: Grade D

Explanation:
The company exhibits significant financial strain marked by severe net liabilities and negative working capital. While the company remains active and compliant with filing deadlines, its balance sheet shows deep deficits and dependency on associate funding, indicating distress symptoms. The going concern assumption is maintained by directors based on future expectations rather than current financial robustness, warranting a cautious grade.

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2. Key Vital Signs

Metric	2022 Value (£)	Interpretation
Fixed Assets	1	Minimal long-term assets; essentially negligible capital investment in fixed assets.
Current Assets	1	Extremely low liquid and near-liquid assets; essentially no cash or receivables of substance.
Current Liabilities	444,518	Very high short-term debts, largely owed to associates, indicating heavy reliance on related parties.
Net Current Assets	-444,517	Severe working capital deficit, indicating inability to cover short-term debts with current assets.
Net Assets / Shareholders’ Funds	-444,516	Negative equity position, showing accumulated losses or liabilities exceeding assets.
Share Capital	1	Minimal share capital, suggesting limited initial funding from shareholders.
Directors’ Remuneration	£0	No remuneration paid, which may reduce cash outflows but could indicate early-stage or non-operational status.
Filing Status	Up to date	No overdue filings; administrative compliance is maintained.
Going Concern Statement	Positive	Directors believe future gains will cover deficits; assumption yet to be proven.

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3. Diagnosis

The company’s financial "vital signs" reveal symptoms of distress akin to a patient with severe malnutrition and frailty:

• Severe liquidity strain: The company's current assets (£1) are grossly insufficient to meet current liabilities (£444,518), resulting in a working capital deficit of over £444k. This is a critical symptom indicating that the company cannot meet its short-term obligations from easily accessible resources.

• Negative net assets: The net liabilities position (negative equity) of £444,516 is substantial relative to the company's minimal share capital. This far exceeds typical tolerances and signals accumulated losses or debts that have not been offset by capital injections or profits.

• Heavy reliance on associates: The entire current liability is owed to associates, suggesting the company is being financed through related party loans rather than external or operating cash flow. This may mask underlying operational challenges or a lack of independent funding sources.

• No employee remuneration: Directors have taken no pay, which can be a sign of conserving cash but also points to limited operational activity or early-stage development.

• Going concern uncertainty: Although directors affirm the company will continue to operate and cover liabilities via future gains, there is no substantive evidence of such gains yet. This assumption is a clinical judgment but remains a risk factor.

• Limited asset base: Fixed assets and current assets are negligible, indicating the company likely has no substantial operational infrastructure or inventory—typical of fund management entities, but still highlighting dependence on external funding.

Overall, the company resembles a patient in a fragile state dependent on external support, with a high risk profile if future gains or funding do not materialize.

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4. Recommendations

To improve financial wellness and stabilize the company’s condition, the following steps are advised:

• Strengthen capital base: Consider equity injections or restructuring of debt to improve net asset position and reduce reliance on associate loans. An infusion of capital would provide a healthier balance sheet.

• Improve liquidity: Develop a plan to increase liquid assets or secure more sustainable funding sources to meet current liabilities promptly, avoiding liquidity crises.

• Operational clarity: If the company plans to generate future gains to cover deficits, it should document and communicate clear business strategies, revenue projections, and timelines to stakeholders.

• Cost management: Continue to control costs tightly, including director remuneration until the company’s financial health improves.

• Regular financial monitoring: Implement frequent cash flow and balance sheet reviews to detect and address symptoms of distress early.

• Transparency and governance: Maintain compliance with filing deadlines and ensure disclosures on going concern assumptions are updated as circumstances evolve.

• Consider professional advice: Early engagement with restructuring or insolvency professionals may be prudent to explore all options to safeguard company viability.

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