NODA VERA SOLUTIONS LTD

Executive Summary

Noda Vera Solutions Ltd exhibits significant financial distress characterized by negative net assets, poor liquidity, and high leverage despite owning valuable property assets. Immediate measures to improve cash flow, restructure debt, and inject equity are critical to stabilize the business and improve its financial health.

NODA VERA SOLUTIONS LTD - Analysis Report

Company Number: 15423856

Analysis Date: 2025-07-29 20:09 UTC

Financial Health Assessment of NODA VERA SOLUTIONS LTD
(Assessment Date: 31 January 2025)

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1. Financial Health Score: D

Explanation:
Noda Vera Solutions Ltd shows significant signs of financial strain, reflected in negative net assets and shareholder funds, and a heavily leveraged position. The company's balance sheet reveals more liabilities than assets, indicating distress symptoms. While it owns substantial fixed assets (property), its current liabilities vastly exceed current assets, resulting in poor liquidity. This financial profile suggests caution and highlights the need for urgent remedial measures.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets (Long-term)	248,425	Strong asset base in property; "solid bone structure".
Current Assets	-419	Negative; indicates potential issues with receivables or prepayments (anomalous negative debtors).
Cash on Hand	61	Extremely low cash reserve; "poor blood flow" for daily operations.
Current Liabilities	72,191	High short-term debts; potential "choking" risk on liquidity.
Net Current Assets (Working Capital)	-72,610	Negative working capital indicates immediate financial stress.
Creditors > 1 Year (Long-term Liabilities)	183,313	Large long-term debt burden; "heavy skeleton weight" restricting flexibility.
Net Assets	-7,498	Negative net worth; company owes more than it owns. "Symptoms of insolvency."
Shareholders' Funds	-7,599	Negative equity; shareholders’ capital is effectively wiped out.

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3. Diagnosis: Underlying Financial Condition

The financial snapshot of Noda Vera Solutions Ltd reveals a company in its infancy (incorporated January 2024) whose initial capital injection (£101 share capital) is minimal compared to its liabilities. The company owns a sizable property asset (£248k), but this is overshadowed by a large creditor base (over £255k combined current and long-term liabilities).

The negative current assets figure and negative debtors suggest accounting anomalies or potential prepaid expenses recorded as negative amounts, which should be clarified. The extremely tight cash position (£61) indicates the company is not generating meaningful liquidity, risking operational paralysis.

Negative net assets and shareholders’ funds point to an overleveraged position. The company is effectively insolvent on a balance sheet basis, a critical symptom of financial distress. The absence of turnover or profit figures suggests no revenue generation to offset expenses or service debt.

Given the company's activity in real estate letting/operating (SIC 68209), the tangible fixed asset is likely property held for rental or lease. However, the debt load appears disproportionate and may be secured debt on this property.

Overall, the company appears to be in a fragile financial state with high leverage, negative working capital, and minimal liquidity. Without cash flow from operations or equity injection, the prognosis is guarded.

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4. Recommendations: Prescriptions for Financial Wellness

• Improve Liquidity:
  Immediate focus on generating cash flow or securing additional working capital to alleviate the "cash flow anemia." This may involve renegotiating payment terms with creditors or injecting further equity.

• Clarify Accounting Items:
  Investigate the negative debtors and current asset figures to ensure accurate financial reporting and understand the true liquidity position.

• Debt Restructuring:
  Engage with creditors to restructure the £183k long-term liabilities to reduce the short-term pressure and spread repayments more sustainably.

• Revenue Generation:
  Accelerate efforts to generate rental income or operational revenue to improve cash inflows, reducing reliance on external financing.

• Equity Injection:
  Consider raising additional share capital to strengthen the equity base, improving solvency ratios and shareholder confidence.

• Cost Control:
  Monitor and control operational costs tightly to prevent further erosion of capital reserves.

• Professional Advice:
  Given the symptoms of financial distress, consult financial advisors or insolvency practitioners early to explore turnaround strategies and prevent crisis escalation.

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Medical Analogy Summary

Noda Vera Solutions Ltd's financial health resembles a patient with a strong skeletal structure (property assets) but suffering from severe circulatory issues—negative working capital and minimal cash—indicating poor blood flow. The heart (equity) is weak, showing signs of failure with negative net assets. Without immediate intervention to improve liquidity and reduce debt burden, the company's prognosis is at risk of deterioration.

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