NW INTELLIGENCE LTD

Executive Summary

NW Intelligence Ltd is currently in a precarious financial state, marked by significant liquidity shortages, negative net assets, and reliance on director loans. Immediate intervention focusing on cash flow improvement, capital reinforcement, and cost control is essential to stabilize the company’s financial health and support future viability.

NW INTELLIGENCE LTD - Analysis Report

Company Number: 13134329

Analysis Date: 2025-07-20 14:30 UTC

Financial Health Assessment of NW Intelligence Ltd

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1. Financial Health Score: D

Explanation:
The company exhibits significant financial distress, reflected in persistent and deep net liabilities and negative shareholders’ funds. The worsening net current liabilities and net assets over the last five years represent symptoms of chronic financial strain. While the company remains active with no overdue filings, the financials signal urgent need for intervention.

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2. Key Vital Signs

Metric	Latest (2025)	Interpretation
Current Assets	£925	Extremely low liquid resources to cover short-term debts.
Cash on Hand	£895	Minimal cash reserves, indicating poor liquidity.
Debtors	£30	Almost negligible receivables, potentially poor sales or collection.
Current Liabilities	£85,265	Very high short-term obligations compared to assets.
Net Current Assets (Working Capital)	-£84,340	Severe working capital deficit; sign of liquidity crisis.
Net Assets (Total Equity)	-£84,340	Negative net worth, suggests insolvency risk.
Shareholders’ Funds	-£84,440	Equity capital wiped out by accumulated losses.
Share Capital	£100	Minimal paid-up capital to absorb losses or support funding.

Trend Analysis:

• Net current liabilities have grown from -£46,481 in 2021 to -£84,340 in 2025.
• Shareholders’ funds have deteriorated consistently, indicating ongoing losses or liabilities accumulation.
• Cash reserves remain insufficient to meet immediate obligations.

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3. Diagnosis

NW Intelligence Ltd’s financial statements reveal chronic symptoms of financial distress:

• Liquidity Crisis: The company has critically low liquid assets (£925) against very high current liabilities (£85k+), indicating it cannot meet obligations as they fall due without external assistance. This is akin to a patient suffering from severe dehydration, unable to sustain bodily functions without urgent intervention.

• Balance Sheet Insolvency: Negative net assets and shareholders’ funds suggest the company’s liabilities exceed its total assets. This is the financial equivalent of organ failure in a patient, where the fundamental structure is compromised.

• Funding Deficiency: The minimal share capital of £100 is inadequate to buffer losses or invest in growth, indicating a weak capital base.

• Stagnant or Declining Receivables: A drop in debtors from £5,149 in 2022 to £30 in 2025 signals potential reduction in sales volume or difficulties in credit collection.

• Reliance on Directors’ Loans: A substantial portion of liabilities (£56,608) is due to directors’ loan accounts, reflecting reliance on internal financing which may not be sustainable long-term.

• No Audit and Micro-Entity Reporting: The company benefits from audit exemption and micro-entity reporting, which limits transparency but may also mask underlying operational issues.

In medical terms, the company shows "symptoms of chronic financial distress" with a poor prognosis if corrective measures are not taken promptly.

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4. Recommendations

To improve the financial wellness of NW Intelligence Ltd, the following specific actions are advised:

• Urgent Cash Flow Management:
  Implement strict cash management protocols. Explore immediate options to increase cash inflows such as accelerating debtor collections, negotiating extended payment terms with creditors, or securing bridging finance.

• Capital Injection:
  Seek new equity investment or shareholder loans to strengthen the capital base and reduce reliance on directors’ loans. This is akin to administering a life-saving transfusion to restore strength.

• Cost Control & Operational Review:
  Conduct a thorough review of operating expenses and overheads to identify and eliminate unnecessary costs. Streamlining operations may improve margins and cash burn rate.

• Debt Restructuring:
  Engage with creditors and directors to restructure liabilities, potentially converting some debt to equity or extending repayment terms to alleviate immediate pressure.

• Revenue Enhancement Strategies:
  Focus on business development to increase sales and diversify income streams. Reviewing pricing, marketing, and sales approaches can stimulate growth.

• Financial Monitoring & Reporting:
  Establish robust financial monitoring with regular reporting to the board, ensuring early detection of financial stress and timely corrective action.

• Professional Advice:
  Consider engaging insolvency practitioners or turnaround specialists early to explore formal restructuring options if informal measures fail.

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