NOMAD-IK BUILDING SERVICES LIMITED

Executive Summary

NOMAD-IK BUILDING SERVICES LIMITED is currently facing financial distress, marked by negative working capital and shareholders’ funds, indicating liquidity challenges and erosion of net worth. Immediate action to improve cash flow, re-evaluate operations, and secure additional capital is essential to avoid further deterioration. Despite these challenges, the company remains compliant with statutory filings and under active management, which provides a foundation for recovery.

NOMAD-IK BUILDING SERVICES LIMITED - Analysis Report

Company Number: SC659641

Analysis Date: 2025-07-29 12:44 UTC

Financial Health Assessment of NOMAD-IK BUILDING SERVICES LIMITED

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1. Financial Health Score: D

Explanation:
The company demonstrates signs of financial distress, characterized by persistent negative net current assets and shareholders’ funds. While the company remains active with no overdue filings, its balance sheet shows a continued erosion of equity and a working capital deficit, which are symptoms of liquidity strain and potential solvency concerns. The financial health score of D reflects these warning signs, indicating caution and the need for remedial financial management.

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2. Key Vital Signs

Metric	Latest (29 Feb 2024)	Interpretation
Cash Balance	£100	Minimal cash reserves—indicates very limited liquidity.
Current Liabilities	£2,276	Short-term debts exceeding cash and current assets.
Net Current Assets	-£2,176	Negative working capital—a key symptom of liquidity issues.
Shareholders’ Funds	-£2,176	Negative equity indicating accumulated losses or deficits.
Share Capital	£100	Small capital base, typical of a micro/small entity.
Employee Count	Nil (0) in latest year	No staff employed, could indicate minimal operations or cost-cutting.

Interpretation:

• Healthy cash flow is absent; the company holds just £100 in cash, insufficient to cover its current liabilities of £2,276.
• Negative net current assets reveal the company’s inability to meet short-term obligations from its liquid assets, a red flag for financial stability.
• Negative shareholders’ funds imply the company’s liabilities exceed its assets, reflecting an erosion of net worth and a symptom of financial distress.
• The lack of employees could mean a dormant operational phase or outsourcing, but also signals limited business activity.

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3. Diagnosis

NOMAD-IK BUILDING SERVICES LIMITED exhibits clear symptoms of financial stress. The persistent negative working capital and negative equity suggest the company is operating in a state of financial imbalance. This could be due to ongoing losses, insufficient capital injection, or delayed revenue generation relative to liabilities. The minimal cash holdings exacerbate liquidity risks, making it difficult to cover immediate debts.

The company’s classification as a private limited company engaged in "Development of building projects" suggests capital-intensive activity, but the current balance sheet shows no assets or cash to support such operations robustly. The absence of employees may also indicate halted or minimal business activities during the latest year.

Despite these symptoms, the company has maintained compliance with filing deadlines, indicating sound administrative management. The director holds full control, but the financial position suggests urgent attention is needed to restore financial health.

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4. Recommendations

1. Improve Liquidity:
   Seek immediate capital injection or short-term financing to cover current liabilities and stabilize cash flow. Without healthy cash inflows, the company risks insolvency.

2. Review Cost Structure and Operations:
   Analyze and reduce unnecessary costs. The absence of employees might be a cost-saving measure, but ensure operational capacity aligns with business goals.

3. Strategic Financial Planning:
   Develop a detailed forecast and business plan that addresses revenue generation, debt management, and capital needs. Engage with a financial advisor to explore restructuring options if losses continue.

4. Monitor Working Capital Closely:
   Implement tighter controls on payables and receivables to improve net current assets and avoid worsening liquidity.

5. Consider Equity Injection:
   The current share capital is minimal (£100). Additional equity investment by the owner or external investors could help restore positive shareholders’ funds.

6. Explore External Funding:
   Investigate government grants, loans, or private investment tailored to the building development sector to bolster working capital.

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