Company Number: 13884910

Analysis Date: 2025-07-29 17:39 UTC

Financial Health Assessment for PRAISE CC TEAM LTD.

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1. Financial Health Score: D

Explanation:
The company exhibits symptoms of financial distress with negative net assets and worsening liquidity in the most recent financial year. Although it began with a positive working capital and net asset position, the latest accounts show a significant deterioration, indicating a fragile and unhealthy financial state.

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2. Key Vital Signs

Metric	2022/23 (£)	2023/24 (£)	Interpretation
Current Assets	3,189	3	Drastic reduction suggests severe depletion of liquid resources.
Current Liabilities	2,543	4,181	Increase in short-term obligations raises concern over payables.
Net Current Assets (Working Capital)	646	-4,178	Shift from positive to negative working capital signals liquidity stress.
Net Assets (Shareholders’ Funds)	646	-4,178	Negative net assets indicate the company owes more than it owns.
Employees	0	0	No employees, indicating limited operational scale or activity.

Interpretation of Vital Signs:

• Working Capital: The move from a net current asset of £646 to a net current liability of £4,178 is a clear symptom of cash flow problems — akin to a patient whose vital signs have worsened sharply. This suggests that the company may struggle to meet its short-term obligations without additional financing or asset liquidation.
• Net Assets: Negative net assets are a critical symptom of balance sheet insolvency, meaning liabilities exceed assets. This indicates an unhealthy capital structure and potential financial distress.
• Cash Position: The near depletion of current assets (from £3,189 to £3) is a red flag, showing the company’s liquid resources are almost exhausted.
• Operational Scale: No employees and minimal assets suggest the business might be at an early stage or not actively trading, which can explain limited financial activity but also raises questions about revenue generation.

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3. Diagnosis

PRAISE CC TEAM LTD. shows clear signs of financial distress as of 28 February 2024. The company’s liquidity has deteriorated markedly, with current liabilities outstripping current assets by a wide margin. The negative shareholders’ funds underscore a capital deficiency, implying that the company’s obligations exceed its resources.

This financial profile resembles a patient whose vital signs indicate systemic weakness: the company is at risk of insolvency without intervention. The lack of employees and extremely low current assets may indicate minimal trading activity or reliance on external funding/support.

The company has not filed a profit and loss statement publicly (common in micro-entity filings), so profitability cannot be directly assessed. However, the worsening balance sheet position strongly suggests operational losses or unaddressed liabilities.

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4. Recommendations

To restore financial wellness and avoid potential collapse, PRAISE CC TEAM LTD. should consider the following:

• Improve Liquidity:

  • Inject additional capital or secure short-term financing to cover immediate liabilities.
  • Review and accelerate debtor collections if applicable.

• Cost Control and Operational Review:

  • Evaluate ongoing expenses and commitments to reduce unnecessary outflows.
  • Since there are no employees, focus on generating revenue or monetizing assets.

• Financial Restructuring:

  • Engage with creditors to negotiate payment terms or restructuring of debts.
  • Consider a formal financial review with insolvency practitioners if recovery is uncertain.

• Business Activity Assessment:

  • Reassess the business model to ensure it generates sufficient cash flow.
  • If inactive, consider whether to continue operations or seek formal closure to prevent further liabilities.

• Governance and Reporting:

  • Maintain timely filings to avoid penalties and maintain transparency with stakeholders.
  • Regularly monitor key financial indicators as "vital signs" to detect early warning symptoms.

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