MY CTO LTD

Executive Summary

MY CTO LTD is currently in a critical financial state characterized by negative net assets and insufficient liquidity to meet short-term obligations. The company shows symptoms of financial distress requiring urgent remedial actions including capital injection and debt restructuring. Without intervention, the outlook is poor, and insolvency risks are high.

MY CTO LTD - Analysis Report

Company Number: 12662309

Analysis Date: 2025-07-29 12:58 UTC

Financial Health Assessment of MY CTO LTD as of 30 June 2024

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1. Financial Health Score: Grade F

Explanation: The company shows persistent and worsening negative net assets over recent years, indicating financial distress. The balance sheet reveals liabilities exceeding assets substantially, a critical symptom of insolvency risk in accounting terms. Immediate corrective actions are necessary to restore financial stability.

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2. Key Vital Signs

Metric	2022/23 (£)	2023/24 (£)	Interpretation
Current Assets	17	17	Extremely low cash and liquid resources; unhealthy "cash flow" position.
Current Liabilities	200	300	Short-term debts increasing, putting pressure on liquidity.
Net Current Assets (Working Capital)	-183	-283	Negative working capital; the company cannot cover short-term debts with short-term assets—"symptom of distress".
Total Net Assets (Equity)	-254	-554	Equity is negative and deteriorating, reflecting accumulated losses and financial imbalance.
Share Capital	1.00	1.00	Nominal capital; no buffer against losses.
Employees	0	0	No human resources employed; may reflect minimal operational scale or paused operations.

Additional Observations:

• The company has no fixed assets reported in recent years, limiting collateral or tangible asset base.
• Long-term creditors have increased from £71 to £271, increasing leverage and risk.
• The sole director and 100% shareholder is Mr. Steven Ronald Atkins.

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3. Diagnosis

The financial "vital signs" of MY CTO LTD strongly indicate a company in financial distress. The persistent negative net assets (equity deficit) are major symptoms of "balance sheet insolvency," where liabilities significantly exceed assets. The working capital deficit (negative net current assets) shows that the company lacks sufficient liquid resources to meet short-term obligations, a "cash flow crisis" signal.

The absence of employees and minimal current assets suggest either a dormant or severely under-resourced operational state. The company's liquidity position is precarious, with increasing creditor demands and no apparent operational income or asset base to cover these liabilities.

This financial profile indicates a "sick patient" scenario requiring urgent intervention to avoid insolvency or forced liquidation. Without corrective measures, the company risks worsening financial health and potential formal insolvency procedures.

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4. Recommendations

To improve the financial wellness of MY CTO LTD, the following specific actions are advised:

1. Immediate Liquidity Assessment and Cash Management

   • Perform a cash flow forecast to identify short-term funding gaps.
   • Negotiate with creditors to restructure payment terms or seek extensions.
   • Inject working capital from the shareholder or external sources to stabilize cash flow.

2. Debt Restructuring

   • Engage with financial advisors to explore refinancing or debt consolidation options.
   • Consider converting some creditor claims into equity to reduce liabilities.

3. Operational Review

   • Assess business model viability, given no employees and minimal assets.
   • Determine if the company intends to restart active trading or pursue orderly closure.
   • If continuing, develop a clear business plan with revenue generation strategies.

4. Financial Reporting and Compliance

   • Maintain timely filing of accounts and confirmation statements to avoid penalties.
   • Consider preparing more detailed financial reports to attract potential investors or lenders.

5. Director’s Duties and Risk Management

   • The director should review duties under insolvency law to avoid wrongful trading.
   • Seek professional advice if insolvency is considered imminent.

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Medical Analogy Summary

MY CTO LTD’s financial health resembles a patient with severe malnutrition and organ failure—liabilities overwhelm assets, akin to vital organs failing due to lack of resources. The "symptoms" of negative net assets and cash shortages suggest the company is in critical condition. Without prompt and effective treatment (capital infusion, debt restructuring, operational revitalization), the prognosis is poor, with a high risk of insolvency "mortality."

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