IZABELLA STUEFLOTTEN CYBER SECURITY LTD

Executive Summary

IZABELLA STUEFLOTTEN CYBER SECURITY LTD is currently experiencing financial distress characterized by negative net assets and liquidity pressures. Immediate actions focused on improving cash flow, reducing liabilities, and injecting capital are essential to restore financial stability and avoid insolvency risks. With timely intervention, the company can recover and build a sustainable financial footing.

IZABELLA STUEFLOTTEN CYBER SECURITY LTD - Analysis Report

Company Number: 14174038

Analysis Date: 2025-07-29 16:43 UTC

Financial Health Assessment Report

Company: IZABELLA STUEFLOTTEN CYBER SECURITY LTD
Assessment Date: As of 30 June 2024

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1. Financial Health Score: D (Weak Financial Health)

The company exhibits signs of financial distress with negative net assets and shareholders’ funds, indicating that liabilities exceed assets. While there is some increase in cash and net current assets, the overall balance sheet shows a concerning deficit in equity, which warrants caution and active management interventions.

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2. Key Vital Signs:

Metric	Value (£)	Interpretation
Cash at Bank	1,400	Positive cash flow signal; small but increasing liquidity buffer.
Current Assets	1,500	Low level of short-term assets; largely reliant on cash holdings.
Current Liabilities	2,601	Short-term debts exceed current assets, implying liquidity strain.
Net Current Assets	(1,101)	Negative working capital indicates potential difficulty meeting short-term obligations.
Creditors (Long-term)	2,601	Significant long-term debt relative to assets; potential financing risk.
Net Assets (Equity)	(1,101)	Negative net assets reflect “balance sheet insolvency” — liabilities exceed total assets.
Shareholders’ Funds	(1,201)	Negative equity means the business is financially underwater.
Trend (2023 to 2024)	Cash ↑, Liabilities ↑	Cash improved but liabilities increased more, worsening net asset position.

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3. Diagnosis:

Like a patient presenting with symptoms of financial distress, IZABELLA STUEFLOTTEN CYBER SECURITY LTD shows several warning signs:

• Negative Net Assets & Equity: The company’s liabilities surpass its assets by over £1,100, suggesting it is "technically insolvent." This is akin to a weak heartbeat in financial terms — the company’s foundation is compromised.

• Liquidity Concerns: Although cash has increased to £1,400, current liabilities (debts due within one year) are almost double at £2,601. This mismatch indicates a liquidity crunch — the company may struggle to pay bills on time without additional funding or improved cash inflows.

• Increasing Long-term Creditors: The rise in creditors from £895 (2023) to £2,601 (2024) indicates growing long-term obligations, possibly loans or payables, which could strain future cash flows.

• No Employees: The company has no staff, and turnover figures are not disclosed, which might suggest limited operational activity or a startup phase with minimal revenue generation.

• Small Scale & Exempt Accounts: Being a small private company with exemption from audit reflects minimal regulatory scrutiny but also signals limited complexity or scale.

Taken together, these symptoms suggest the company is in a fragile state, requiring urgent attention to avoid deeper financial distress or insolvency.

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4. Prognosis:

If current financial trends continue without intervention, the outlook is concerning. The company risks:

• Inability to meet short-term obligations leading to creditor pressure.
• Negative equity may deter investors or lenders from providing additional support.
• Without increased revenue or capital injection, the company may face insolvency or forced restructuring.

However, the modest increase in cash shows some potential for recovery if the company can improve operational cash flow or secure funding.

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5. Recommendations (Prescriptions for Recovery):

a) Improve Liquidity Management

• Prioritize collection of receivables and delay non-essential payments to improve cash flow.
• Negotiate extended terms with creditors to alleviate short-term pressure.

b) Capital Injection

• Consider new equity investment or shareholder loans to strengthen the balance sheet and restore positive net assets.
• Explore government grants or support schemes especially relevant for tech and cyber security startups.

c) Increase Revenue Generation

• Accelerate sales efforts or service delivery to generate sustainable turnover.
• Diversify client base to reduce concentration risk and enhance cash inflows.

d) Cost Control

• Maintain lean operations; avoid hiring until cash flow stabilizes.
• Review and reduce overheads or discretionary expenses.

e) Financial Monitoring & Reporting

• Implement regular financial reviews to monitor cash flow and liabilities closely.
• Prepare forecasts and scenario analyses to anticipate financial needs and risks.

f) Professional Advice

• Engage a financial advisor or turnaround specialist to develop a detailed recovery plan.
• Consider early dialogue with creditors to manage repayment expectations.

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Medical Analogy Summary:

This company is like a patient with low blood pressure and weak pulse: the core financial measures indicate the business is under stress and requires urgent treatment to stabilize. Cash flow is the lifeblood, currently weak but showing signs of improvement. Without timely intervention, the risk of collapse (insolvency) increases. However, with proper care—capital infusion, tighter cash management, and revenue growth—the company can regain financial health and vitality.

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