IT'S ALL IN THE NAME LTD

Executive Summary

IT'S ALL IN THE NAME LTD is currently facing financial challenges characterized by a working capital deficit and negative equity, signaling operational strain and accumulated losses. The company’s liquidity situation requires urgent attention, and a strategic financial overhaul including capital injection, improved cash flow management, and governance restructuring is recommended to stabilize and improve its financial wellness.

IT'S ALL IN THE NAME LTD - Analysis Report

Company Number: 14130350

Analysis Date: 2025-07-29 12:32 UTC

Financial Health Assessment: IT'S ALL IN THE NAME LTD

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1. Financial Health Score: D

Explanation:
The company exhibits signs of financial strain and fragility. Negative net current assets (working capital deficit) over consecutive years, combined with negative shareholders’ funds, indicate a weak financial condition. While not immediately critical, these symptoms suggest the company is under financial distress and needs remedial action to stabilize.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	51,445	38,378	Increased cash and receivables—positive liquidity sign
Current Liabilities	53,163	39,108	Growing short-term debts—pressure on cash flow
Net Current Assets	-1,718	-730	Working capital deficit—company may struggle to meet short-term obligations
Shareholders’ Funds (Equity)	-1,718	-730	Negative equity—indicates accumulated losses or liabilities exceeding assets

• Working Capital Deficit: The company consistently has more short-term liabilities than assets, meaning it may face challenges paying bills on time.
• Negative Shareholders’ Funds: Reflects accumulated losses or insufficient capital, undermining financial stability.
• Cash Position: Cash increased from £21,880 in 2023 to a higher current assets figure in 2024, but still insufficient to cover liabilities.
• Micro Entity Status: The company’s small size limits filing requirements but also means limited financial cushion.

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3. Diagnosis: Signs of Financial Distress

The company is exhibiting symptoms akin to a patient with a chronic condition:

• "Working Capital Deficiency" is like a heart struggling to pump sufficient blood; the company’s day-to-day liquidity is weak, risking operational hiccups.
• "Negative Equity" signals a weakened immune system—accumulated losses are eating into the company’s net worth, which may hinder future borrowing or investment.
• The increasing current liabilities outpacing current assets suggest the company is relying on short-term credit, which if unchecked, may lead to insolvency risk.
• The company has a very small workforce (1 employee), indicating limited operational scale.
• Recent change in director and control may reflect ongoing restructuring or attempts to address governance issues.
• The absence of audit requirements for micro-entities implies limited external scrutiny, which can mask deeper issues.

Overall, the company's "vital signs" show a patient in mild to moderate distress, requiring intervention to prevent deterioration.

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4. Recommendations: Treatment Plan for Financial Wellness

To improve financial health, the company should consider the following steps:

a. Improve Liquidity and Working Capital Management

• Tighten credit control and accelerate receivables collection.
• Negotiate longer payment terms with suppliers to ease cash flow pressure.
• Review and reduce unnecessary expenses to conserve cash.

b. Capital Injection

• Consider fresh equity funding or loans from shareholders or external investors to restore positive net assets.
• Explore government support schemes for micro businesses if applicable.

c. Financial Restructuring

• Evaluate liabilities for potential refinancing or restructuring, possibly extending payment terms or consolidating debt.
• Implement rigorous budgeting and cash flow forecasting to anticipate and manage shortfalls.

d. Governance and Strategic Review

• With the recent director change, ensure clear strategic direction focusing on sustainable growth.
• Seek professional financial advice to establish financial controls and reporting systems.

e. Monitor Financial Health Regularly

• Establish key performance indicators (KPIs) such as current ratio, quick ratio, and cash runway.
• Schedule regular financial reviews to detect early symptoms of distress.

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In medical terms, the company is showing early symptoms of financial distress but is not yet critically ill. With timely intervention and treatment, there is a good chance of recovery and restoration of financial health.

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