LANGUAGE WRITING SERVICES LIMITED

Executive Summary

LANGUAGE WRITING SERVICES LIMITED shows severe financial distress with almost no net assets and cessation of trading as of February 2025. Its liquidity position is critically weak, leaving the company unable to meet short-term obligations, reflecting a business in terminal decline. Immediate steps towards formal closure or restructuring are advisable to protect stakeholders.

LANGUAGE WRITING SERVICES LIMITED - Analysis Report

Company Number: 13909019

Analysis Date: 2025-07-20 18:34 UTC

Financial Health Assessment of LANGUAGE WRITING SERVICES LIMITED

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1. Financial Health Score: D

Explanation:
The company shows significant signs of financial distress with a critically low net asset base and near-zero working capital at the most recent year-end. The equity position has drastically eroded, indicating a severe decline in financial stability, likely linked to cessation of trading. This reflects a fragile financial condition akin to a patient showing acute symptoms requiring urgent intervention.

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2. Key Vital Signs: Core Financial Metrics and Interpretation

Metric	2025 (£)	2024 (£)	Analysis
Cash at Bank	2,759	4,921	Cash reserves have nearly halved, indicating reduced liquidity — akin to a weakening pulse.
Current Liabilities	2,758	2,536	Slight increase in short-term obligations, exerting pressure on cash outflows.
Net Current Assets (Working Capital)	1	2,385	Near-zero working capital signals inability to cover immediate liabilities — a critical distress signal.
Net Assets (Equity)	1	2,385	Equity has almost vanished, showing substantial capital erosion and loss accumulation.
Profit & Loss Reserve	-	2,384	The negative reserve in 2025 (implied) points to accumulated losses or depletion of retained earnings.
Trading Status	Ceased trading at 28/02/2025	Active	Ceasing operations confirms a terminal symptom indicating business shutdown.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Deteriorating Liquidity: The company’s cash position has diminished sharply with current liabilities almost equal to cash available, leaving virtually no buffer to meet short-term debts.
• Capital Erosion: The equity base has been eroded to a negligible amount (£1), which implies the business has consumed nearly all its net assets, likely due to losses or write-downs.
• Cessation of Operations: The accounts explicitly state the company ceased trading on 28 February 2025 and the financial statements are not prepared on a going concern basis. This is a critical red flag indicating the business is effectively non-operational.
• Financial "Symptom" of Distress: The near-zero working capital and collapse of net assets resemble a patient in acute shock with failing vital signs, reflecting a company in the final stages of financial life.
• No Audit Required: The company qualifies for audit exemption, typical for small entities, but the lack of audit means less external assurance on the financial position.

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4. Recommendations: Specific Actions to Improve Financial Wellness

Given that the company ceased trading and has minimal net assets, the focus now shifts to orderly closure or restructuring:

• Immediate Action: Assess options for formal insolvency procedures (e.g., liquidation) if not already underway to protect creditors and limit director liabilities.
• Director Review: The sole director should seek professional advice on obligations regarding creditor notifications and final tax filings.
• Asset Realisation: Identify any remaining assets for realisation to settle outstanding liabilities.
• Stakeholder Communication: Transparently communicate with creditors, shareholders, and employees regarding the company’s status.
• Future Prevention: For any future ventures, implement robust cash flow management and build working capital reserves to withstand operational shocks.

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Executive Summary