Company Number: 13824821

Analysis Date: 2025-07-29 18:13 UTC

Financial Health Assessment for ITERO GAMING LTD (as at 31 December 2022)

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1. Financial Health Score: D

Explanation:
The company exhibits signs of financial distress with negative net assets and a working capital deficit. The balance sheet shows liabilities exceeding assets, indicating the business is "ill" financially. This score reflects the need for urgent attention to improve solvency and liquidity.

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2. Key Vital Signs:

Metric	Value (£)	Interpretation
Fixed Assets	2,154	Very low investment in long-term assets; typical for a micro entity, but limits asset backing.
Current Assets	10,374	Limited liquid assets, including cash and receivables.
Prepayments and Accrued Income	4,534	Amounts paid in advance or income recognized but not yet received; affects cash flow.
Current Liabilities	19,702	Short-term debts due within a year exceed current assets, signaling liquidity strain.
Net Current Assets	-4,794	Negative working capital indicates cash flow problems—“symptom of distress.”
Creditors due after 1 year	9,269	Medium-term liabilities adding to financial burden.
Accruals and Deferred Income	1,299	Liabilities recognized but not yet paid; further pressure on cash.
Total Net Assets (Equity)	-13,208	Negative net worth implies insolvency on a balance sheet basis.
Number of Employees	3	Small workforce consistent with micro-entity status.

Additional Notes:

• The company is a micro-entity, incorporated in 2022, so it's relatively new with limited historical data.
• The director ownership is concentrated, with Mr Jack Joseph Williams controlling 75-100%, which is common in startups but concentrates risk.
• The company operates in software publishing (SIC 58290), an industry where intangible assets and intellectual property are significant but may not be fully reflected on the balance sheet.

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3. Diagnosis:

The vital signs reveal a company in its infancy stage facing financial challenges typical of startups but with concerning liquidity and solvency indicators. Negative net current assets and overall negative equity ("net assets") are clear symptoms of financial distress. This means the company owes more than it owns, which may threaten ongoing operations if not addressed.

The negative working capital suggests the company may struggle to meet short-term obligations without external financing or additional capital injections. The presence of creditors due after one year adds pressure on longer-term solvency.

The low fixed asset base suggests reliance on intangible assets or software development, which may not be captured on the balance sheet, a common scenario in tech startups.

In summary, the financial data paints a picture of a company with a "weak pulse" — not yet dead, but requiring urgent intervention to avoid worsening health, such as insolvency or forced liquidation.

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4. Recommendations:

To improve financial wellness and return to a "healthy" financial state, ITERO GAMING LTD should consider the following actions:

• Improve Liquidity:

  • Seek additional working capital through equity investment or short-term borrowing to cover immediate liabilities.
  • Tighten credit control and accelerate cash collections to boost current assets.

• Restructure Liabilities:

  • Negotiate with creditors to extend payment terms or reduce debts to ease cash flow pressures.
  • Consider converting some debt to equity if possible, to strengthen the balance sheet.

• Cost Management:

  • Review operating expenses rigorously to conserve cash, especially staff and overhead costs.
  • Implement budgeting controls to monitor cash burn rate closely.

• Asset and Revenue Growth:

  • Focus on growing revenues through marketing and product development to increase cash inflows.
  • Capitalize on software publishing strengths by protecting intellectual property and exploring licensing.

• Financial Monitoring:

  • Regularly update financial forecasts and perform cash flow projections to anticipate future issues early.
  • Engage with financial advisors or mentors specializing in startups for strategic guidance.

• Governance and Transparency:

  • Maintain timely and accurate financial filings to preserve credibility with stakeholders.
  • Consider board or investor oversight to add accountability.

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