NDN TELECOMS LTD

Executive Summary

NDN TELECOMS LTD is currently in a financially critical state with net liabilities exceeding assets by over £72,000, indicating liquidity and solvency issues. Immediate action focused on cash flow management, debt restructuring, and potential capital infusion is essential to prevent further financial deterioration. Without swift intervention, the company risks insolvency despite having a small but stable team and centralized ownership control.

NDN TELECOMS LTD - Analysis Report

Company Number: 14470196

Analysis Date: 2025-07-20 13:11 UTC

Financial Health Assessment: NDN TELECOMS LTD (As of 30 November 2023)

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1. Financial Health Score: F

Explanation:
NDN TELECOMS LTD shows critical financial distress with net liabilities of £72,091. This indicates the company’s liabilities exceed its current assets, reflecting a negative working capital position. The absence of fixed assets and significant current liabilities signals poor financial stability and an immediate need for corrective action.

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2. Key Vital Signs:

Metric	Value	Interpretation
Fixed Assets	£0	No long-term assets, possibly limited investment in infrastructure or equipment.
Current Assets	£59,047	Cash and receivables available to meet short-term obligations.
Current Liabilities	£131,138	Short-term debts and obligations due within one year, markedly higher than current assets.
Net Current Assets (Working Capital)	-£72,091	Negative working capital suggests liquidity stress and potential cash flow problems.
Net Assets (Equity)	-£72,091	Negative equity indicates liabilities exceed assets; company is technically insolvent on balance sheet.
Employees	8	Small team size, which could strain operational capacity given financial constraints.

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3. Diagnosis:

The company exhibits symptoms of severe financial distress:

• Negative net current assets and net equity signify that the company owes more than it owns in terms of liquid assets and overall financial resources. This condition is akin to a patient with dangerously low blood pressure—there is insufficient financial "circulation" (cash flow) to support ongoing operations.
• The lack of fixed assets may indicate a start-up phase or divestment but also limits collateral value or long-term investment in the business infrastructure.
• The significant short-term liabilities create a liquidity crunch, risking inability to meet immediate financial obligations.
• Operating with 8 employees suggests fixed operational costs which may be unsustainable without sufficient cash inflows.
• The company is classified as micro-entity, so reporting requirements are minimal, but the financial position is nonetheless alarming.
• Director and majority shareholder control by Mr. Dominic Permo Diawuo indicates centralized decision-making, which could be advantageous for swift strategic action, but also means the financial risks are concentrated.

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4. Recommendations:

To stabilize and improve financial wellness, the company should urgently consider the following actions:

• Cash Flow Management: Implement strict cash flow monitoring and forecasting to prevent insolvency. Prioritize payments to critical creditors to avoid legal actions.
• Cost Control: Review and reduce operating expenses, especially fixed costs related to staffing and overhead, to conserve cash.
• Debt Restructuring: Engage with creditors to negotiate extensions or reductions in liabilities to ease short-term financial pressure.
• Capital Injection: Seek additional equity investment or shareholder loans to restore positive net assets and improve liquidity.
• Asset Strategy: Consider acquiring or leveraging fixed assets to improve operational capability and borrowing power.
• Strategic Review: Reassess business model viability in the construction sector; explore new revenue streams or partnerships to enhance income.
• Professional Advice: Consult insolvency or financial restructuring specialists for options such as Company Voluntary Arrangements (CVA) if distress worsens.
• Governance: Ensure director is fully aware of fiduciary duties to avoid wrongful trading risks.

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