NEXT LEVEL LIMITED

Executive Summary

NEXT LEVEL LIMITED is exhibiting symptoms of financial fragility with minimal net assets and no cash reserves, indicating constrained liquidity and operational capacity. The company remains solvent but is at risk without capital infusion and improved cash flow management. Immediate actions to strengthen liquidity, control costs, and clarify operational strategy are essential to restore financial health.

NEXT LEVEL LIMITED - Analysis Report

Company Number: SC676536

Analysis Date: 2025-07-20 13:29 UTC

Financial Health Assessment for NEXT LEVEL LIMITED (as of 31 October 2023)

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress with minimal net assets (£120) and zero cash at year-end, indicating a fragile liquidity position. The downward trend in net assets and current assets over recent years signals weakening financial stability. While the company remains solvent, it is operating with very limited working capital and no employees, which may constrain operational capacity and growth.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Cash at Bank	£0	No liquid cash reserves; potential cash flow challenges ("flatlined liquidity")
Current Assets	£N/A	Insufficient recent data; previously declining from £13,606 (2020) to near zero
Current Liabilities	£120	Very low short-term liabilities, manageable but minimal buffer
Net Current Assets	£120	Positive but very low working capital; "weak pulse" in short-term solvency
Net Assets (Shareholders’ Funds)	£120	Minimal equity base, sharply reduced from £7,253 in 2020, indicating erosion of capital
Share Capital	£1	Nominal share capital; no significant equity injections
Employees	0	No staff employed, raising concerns about operational capability
Debt from Directors	(£633)	Interest-free or informal loan from director; adds to liabilities but flexible

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3. Diagnosis

The company exhibits clear symptoms of financial distress, primarily characterized by:

• Dwindling net assets: A steep decline from £7,253 in 2020 to £120 in 2023 reflects accumulated losses or asset depletion. This is akin to a patient losing body mass rapidly, signaling underlying illness.

• Zero cash reserves: The lack of liquid funds at year-end indicates constrained cash flow, making it difficult to cover immediate expenses or respond to unexpected costs. This is like a patient with no energy reserves, vulnerable to shocks.

• Minimal working capital: While current liabilities are low, current assets are equally minimal, providing little buffer for day-to-day operations.

• No employees: Operating with zero staff suggests either a dormant or very limited operational activity, which may impair revenue generation, or potentially indicates a company in a holding pattern.

• Director’s loan: The presence of director loans indicates reliance on internal funding, which may be a temporary lifeline but is not a substitute for sustainable business earnings.

Overall, NEXT LEVEL LIMITED appears to be in a precarious financial state, with limited capacity to grow or invest without new capital or improved cash flow. The company is solvent but teetering on a fragile balance sheet.

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4. Recommendations

To improve financial wellness, NEXT LEVEL LIMITED should consider the following specific actions:

1. Boost liquidity: Explore options to generate cash flow, such as accelerating receivables, reducing non-essential expenses, or securing short-term financing to build a cash buffer. Healthy cash flow is like a steady heartbeat supporting the business.

2. Capital injection: Consider equity funding or additional director loans to strengthen the equity base and shore up net assets. This acts like replenishing vital nutrients to regain strength.

3. Operational review: Assess the business model and operational needs. If the company intends to remain active, hiring or contracting essential personnel is critical to drive revenue and sustainability.

4. Cost control: Tighten cost management to ensure expenses do not exceed income, preventing further erosion of capital.

5. Strategic planning: Develop a clear business plan with financial forecasts to identify break-even points and growth paths, helping to diagnose root causes of financial decline and prescribe treatment.

6. Regular financial monitoring: Implement monthly cash flow and balance sheet reviews to catch early warning signs of distress and respond promptly.

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