NONGOR LTD

Executive Summary

NONGOR LTD’s financial health is currently critical, with negative net assets and working capital signaling insolvency risks. Immediate actions to improve cash flow, control costs, and restructure liabilities are essential to stabilize the company’s financial condition. Without intervention, the company faces severe financial distress that could threaten its survival.

NONGOR LTD - Analysis Report

Company Number: 14848863

Analysis Date: 2025-07-29 17:43 UTC

Financial Health Assessment for NONGOR LTD as at 31 May 2024

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1. Financial Health Score: Grade F

Explanation:
The company’s financials show a critical imbalance between current assets and liabilities, with net current liabilities of £4,964. This indicates a severe liquidity issue—like a patient with dangerously low blood pressure—highlighting an inability to cover short-term obligations. The negative net assets and shareholders’ funds further imply insolvency risks. This financial profile signals distress and urgent need for remedial action.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	112	Very low liquid or near-liquid resources available to meet obligations.
Current Liabilities	5,076	Short-term debts and payables due within one year.
Net Current Assets	-4,964	Negative working capital indicates inability to cover debts with available assets.
Net Assets (Equity)	-4,964	Total liabilities exceed assets, reflecting insolvency “symptoms.”
Shareholders’ Funds	-4,964	Equity is negative, meaning owners’ investment is effectively wiped out.
Employee Count	1	Very small operation, minimal overhead but limited capacity for income generation or diversification.

Interpretation:
The company’s “vital signs” reveal an acute liquidity deficiency and a balance sheet in the red. The very low current assets versus liabilities ratio is like a patient with little blood volume facing high demand—indicating a high risk of financial collapse if not stabilized.

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3. Diagnosis

NONGOR LTD is exhibiting severe financial distress with:

• Negative working capital: Current liabilities exceed current assets by a large margin, meaning the company cannot pay its immediate debts from available resources.
• Negative net assets: Total liabilities surpass assets, signaling insolvency under accounting standards.
• Micro-entity status: The company is very small, with minimal assets and only one employee, limiting its operational and financial flexibility.
• Recent incorporation (2023): With just over a year since formation, the company may be in early developmental stages or facing initial trading losses.

The financial "symptoms" strongly suggest the company is not currently financially “healthy” and is at risk of insolvency unless corrective steps are taken promptly.

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4. Recommendations

To restore financial wellness and avoid further deterioration, the company should consider the following actions:

• Urgent Cash Flow Management:
  Increase liquid assets by securing additional funding (e.g., director loans, investor capital) or negotiating extended payment terms with creditors to improve short-term liquidity.

• Cost Control:
  Limit expenses aggressively, focusing only on critical operational costs to conserve cash given the minimal asset base.

• Business Model Review:
  Evaluate revenue generation strategies and the viability of current operations. Given the director’s background in nutrition, explore niche market opportunities or partnerships to boost income.

• Financial Restructuring:
  Consider restructuring debts or refinancing to reduce immediate liabilities and improve balance sheet health.

• Professional Advice:
  Seek early advice from insolvency practitioners or financial advisors to explore options such as company voluntary arrangements if insolvency risk persists.

• Regular Monitoring:
  Implement strict financial monitoring procedures to track liquidity and solvency metrics closely, much like regular health check-ups for a patient with chronic illness.

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