NEW AGE TRANSPORT LTD

Executive Summary

NEW AGE TRANSPORT LTD is currently facing significant financial challenges, characterized by negative working capital and net liabilities, which place it in a vulnerable liquidity position. Immediate actions to improve cash flow, reduce costs, and restructure finances are critical to restoring its financial health and ensuring ongoing operational viability.

NEW AGE TRANSPORT LTD - Analysis Report

Company Number: 13827767

Analysis Date: 2025-07-29 18:05 UTC

Financial Health Assessment for NEW AGE TRANSPORT LTD

---

1. Financial Health Score: D

Explanation:
The company exhibits clear symptoms of financial distress. Persistent negative net current assets and net liabilities indicate a fragile liquidity position and insolvency risk. While the business is still active, these vital signs suggest urgent attention is needed to restore financial health.

---

2. Key Vital Signs:

Metric	Latest (2024)	Interpretation
Current Assets	£2,012	Low cash and equivalents; very limited short-term resources.
Current Liabilities	£7,636	Obligations due within one year, significantly higher than assets.
Net Current Assets (Working Capital)	-£5,624	Negative working capital; company cannot cover short-term debts with current assets.
Net Assets (Shareholders’ Funds)	-£6,138	Negative net worth indicating liabilities exceed assets; possible insolvency sign.
Employee Count	2	Small workforce consistent with Micro entity status; limited scale.
Account Category	Micro	Smallest reporting requirements; limited financial disclosure.
Company Status	Active	The business is operational but financially fragile.
Industry	Other passenger land transport (SIC 49390)	Capital and operationally intensive sector.

---

3. Diagnosis:

NEW AGE TRANSPORT LTD is currently showing symptoms akin to a patient with poor vital signs—its liquidity is weak, and its balance sheet is in the "red." Negative net current assets over consecutive years indicate persistent cash flow issues, where short-term liabilities far outstrip liquid assets. This “cash flow anemia” limits the company’s ability to meet immediate obligations, which can trigger supplier pressure, risk of insolvency, or forced restructuring.

The negative net assets suggest accumulated losses or shareholder withdrawals exceeding the company's asset base—an unhealthy state indicating that the company’s financial “immune system” is compromised. The company’s small size and micro-entity status imply limited resources and resilience.

Director and control structures show a small group of significant controllers, which may facilitate quick decision-making but also concentrates risk.

---

4. Recommendations:

• Immediate Cash Flow Management:
  Assess and improve short-term liquidity by negotiating extended payment terms with creditors, accelerating receivables, or injecting working capital. Consider emergency funding to stabilize “circulatory” financial flow.

• Cost Control and Efficiency:
  Given the negative working capital, carefully scrutinize operational expenses. Explore cost reductions without compromising service quality.

• Financial Restructuring:
  Engage with financial advisors to explore restructuring liabilities, possibly converting short-term debts into longer-term obligations to relieve immediate pressure.

• Explore Additional Capital Injection:
  Given the negative net worth, consider equity injection or shareholder loans to strengthen the balance sheet.

• Regular Financial Monitoring:
  Implement rigorous monthly financial reporting to detect and address “symptoms” early before they worsen.

• Strategic Review:
  Evaluate the business model in the context of the competitive passenger transport sector. Consider diversification or scaling strategies to improve profitability and cash generation.

• Compliance and Governance:
  Ensure timely filing of accounts and returns continue to avoid regulatory penalties that could exacerbate financial strain.

---