PICKLESTIX TCG LIMITED

Executive Summary

PICKLESTIX TCG LIMITED is currently experiencing severe financial distress characterized by a critical liquidity shortage and a negative net asset position, putting the company at risk of insolvency. Immediate actions focusing on cash flow management, capital reinforcement, and cost control are essential to stabilize the business and improve financial health. Without prompt intervention, the prognosis remains poor, with a high risk of formal insolvency procedures.

PICKLESTIX TCG LIMITED - Analysis Report

Company Number: 14227168

Analysis Date: 2025-07-19 13:03 UTC

Financial Health Assessment: PICKLESTIX TCG LIMITED (as of 30 June 2024)

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1. Financial Health Score: D

Explanation:
The company shows significant signs of financial distress, mainly due to a drastic deterioration in liquidity and net asset position. The current liabilities far exceed current assets, resulting in negative net current assets and net liabilities. This indicates poor short-term financial health and potential solvency concerns, warranting a "D" grade.

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2. Key Vital Signs

Metric	2023 (£)	2024 (£)	Interpretation
Current Assets	25,035	1	Sharp decline; virtually no liquid resources available in 2024.
Current Liabilities	44,138	79,064	Significant increase in short-term obligations; rising pressure on liquidity.
Net Current Assets	-19,103	-79,063	Negative and worsening; symptoms of acute cash flow distress.
Net Assets (Equity)	19,003	-78,963	Shift from positive to deeply negative equity; indicates insolvency risk.
Shareholders’ Funds	19,003	-78,963	Mirrors net assets; shareholder value eroded substantially.
Employees (Average)	2	2	Stable staffing; no reduction despite financial stress.

Interpretation of Vital Signs:

• The company's liquidity is critically low, with current assets dropping to just £1 against current liabilities of £79,064. This is akin to a patient whose vital signs show dangerously low blood pressure—an urgent red flag.
• The negative net assets reflect a balance sheet where liabilities exceed assets, implying the company owes more than it owns—a symptom of insolvency.
• The increase in current liabilities likely reflects unpaid debts or accrued expenses, suggesting difficulties in meeting obligations on time.
• Despite financial strain, the workforce remains steady, which could indicate commitment but also increased cash burn.

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3. Diagnosis

The financial data reveals that PICKLESTIX TCG LIMITED is in a state of severe financial distress. The company has moved from a modestly positive net asset position in 2023 to a heavily negative one in 2024. The liquidity crunch—evidenced by virtually no current assets—indicates the business may be struggling to fund day-to-day operations. This is a critical symptom akin to a patient experiencing organ failure due to lack of essential nutrients.

The rise in current liabilities suggests the company may be accumulating unpaid debts or deferring payments, which can quickly escalate into insolvency if not addressed. The negative equity position means the company is effectively insolvent on a balance sheet basis, a serious red flag for creditors and stakeholders.

While the micro-entity status limits the depth of financial disclosures, these headline figures alone point to an urgent need for intervention to avoid formal insolvency proceedings.

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4. Recommendations

To improve financial wellness and steer away from potential liquidation, the company should consider:

• Immediate Cash Flow Management:

  • Review all payables and receivables to accelerate cash inflows and defer non-essential outflows.
  • Negotiate with creditors for extended payment terms to ease liquidity pressure.

• Capital Injection:

  • Seek additional equity investment or shareholder loans to restore positive net assets and fund operations.
  • Explore bridging finance options if necessary to support working capital.

• Cost Control:

  • Assess operational expenses critically and reduce overheads where possible without harming core business activities.
  • Evaluate staff costs carefully; while current employment is stable, consider temporary reductions if cash flow remains tight.

• Financial Monitoring:

  • Implement rigorous monthly cash flow forecasting to detect symptoms of distress early.
  • Regularly review financial metrics to ensure alignment with recovery plans.

• Strategic Review:

  • Evaluate business model sustainability in the current market.
  • Consider restructuring options or seeking professional insolvency advice to explore alternatives.

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