NAUTICAL ID INTERNATIONAL LIMITED

Executive Summary

Nautical Id International Limited is facing significant financial distress, marked by negative equity and poor liquidity. The company must urgently address its cash flow and capital structure to avoid insolvency. With targeted financial interventions and operational adjustments, recovery remains possible.

NAUTICAL ID INTERNATIONAL LIMITED - Analysis Report

Company Number: 12601284

Analysis Date: 2025-07-29 14:25 UTC

Financial Health Assessment of Nautical Id International Limited

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1. Financial Health Score: D

Explanation:
The company’s financial health is currently distressed. The key indicator is the significant net liabilities and negative shareholders’ funds, reflecting a financial imbalance akin to a patient with a critical deficiency in vital nutrients. The deterioration from positive net assets in previous years to a substantial net liability position signals systemic financial stress requiring immediate attention.

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2. Key Vital Signs: Critical Metrics and Interpretation

Metric	Latest (2024)	Interpretation
Fixed Assets	£8,700	Stable intangible assets; represents long-term investment in software/data processing assets.
Current Assets	£167	Extremely low short-term assets (cash + debtors), indicating weak liquidity (very thin cash).
Current Liabilities	£37,173	High short-term obligations compared to current assets, signals liquidity strain.
Net Current Assets	-£37,006	Negative working capital; akin to a patient with inadequate blood volume to sustain operations.
Total Assets Less Current Liabilities	-£28,306	Negative figure confirms liabilities exceed assets; insolvency symptoms present.
Net Assets / Shareholders’ Funds	-£28,306	Negative equity indicates accumulated losses have eroded owner’s capital base.
Share Capital	£19	Nominal capital; does not provide significant buffer against losses.
Trend (2023 vs 2024)	From +£26,731 to -£28,306	Rapid and severe decline in financial position over one year; alarming financial “symptom.”

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

The company is exhibiting clear symptoms of financial distress:

• Liquidity Crisis: With current liabilities (£37,173) vastly exceeding current assets (£167), the company’s ability to meet short-term obligations is severely compromised. This is analogous to a patient with critically low blood pressure unable to sustain vital functions.

• Negative Equity: The shareholders’ funds have plunged from a healthy positive position (£26.7k in 2023) to a deep negative (£-28.3k in 2024). This indicates accumulated losses or write-downs that have wiped out the company’s net worth, a sign of chronic financial illness.

• Stable Fixed Assets: The intangible fixed assets remain constant at £8,700, which suggests no impairment or disposals. However, the asset base is insufficient to offset the liabilities.

• Operational Scale: The average number of employees is just 1, indicating a micro-scale operation with limited resources.

• Control and Governance: Ownership and control rest with a few entities and individuals, including KKVMS Nominees Limited and Mr. Philip Joseph Reid (also a former director). Recent director turnover may reflect governance changes in response to financial stress.

• Industry Context: Operating in data processing and software development suggests a knowledge-based business with intangible asset reliance but limited physical collateral.

Underlying Causes (Symptoms):

• Possible poor cash flow management or revenue shortfall leading to inability to service debts.

• Accumulated operational losses reducing reserves and equity base.

• Timing mismatch between revenue inflows and creditor obligations.

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4. Recommendations: Specific Actions to Improve Financial Wellness

To stabilize and recover, the company should consider the following steps:

1. Immediate Cash Flow Management

   • Conduct a cash flow forecast to identify funding gaps.
   • Prioritize payments to critical creditors to avoid legal actions.
   • Negotiate extended payment terms with suppliers or creditors to ease short-term pressure.

2. Capital Injection or Debt Restructuring

   • Seek additional equity investment or shareholder loans to restore positive net assets.
   • Consider refinancing existing liabilities to improve liquidity.

3. Operational Review

   • Assess business model viability and cost structure to identify cost-saving opportunities.
   • Explore revenue enhancement strategies, potentially leveraging intangible assets.

4. Governance and Oversight

   • Strengthen board oversight and financial controls to detect and prevent further deterioration.
   • Engage professional advisors (e.g., insolvency practitioners) to explore restructuring options if necessary.

5. Compliance and Reporting

   • Ensure timely filing and transparent communication with stakeholders to maintain trust.
   • Monitor financial indicators monthly to detect early warning signs.

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Medical Analogy Summary:
Nautical Id International Limited is currently in a critical financial condition, much like a patient experiencing shock due to severe loss of vital resources. Without prompt intervention—such as replenishing capital (blood transfusion), managing cash flow (stabilizing circulation), and restructuring operations (therapy)—the company risks insolvency.

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