PROCLASS HEALTHCARE SOLUTIONS LIMITED

Executive Summary

PROCLASS HEALTHCARE SOLUTIONS LIMITED is currently facing liquidity challenges and has negative net assets, indicating financial distress. While some improvement is visible, the company needs to urgently enhance cash flow management and strengthen capital to ensure ongoing viability. Prompt action on these fronts will be critical to reversing the current downward financial trend.

PROCLASS HEALTHCARE SOLUTIONS LIMITED - Analysis Report

Company Number: 14155636

Analysis Date: 2025-07-29 21:16 UTC

Financial Health Assessment: PROCLASS HEALTHCARE SOLUTIONS LIMITED

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1. Financial Health Score: D

Explanation:
The company shows persistent negative net current assets (working capital deficit) over the past two reported years, indicating liquidity stress. Despite being a micro-entity with limited financial complexity, the current liabilities significantly exceed current assets, which is a symptom of financial strain. However, a slight improvement is visible from 2023 to 2024, suggesting some stabilization efforts. Overall, the financial health is weak but not yet critical.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	1,597	Very low liquid assets available to cover short-term debts.
Current Liabilities	13,756	High short-term obligations; a red flag for liquidity risk.
Net Current Assets	-12,159	Negative working capital; indicates potential cash flow problems.
Total Net Assets	-12,159	Negative equity; company owes more than it owns, a sign of financial distress.
Average Number of Employees	2	Small workforce consistent with micro-entity status; limited operational scale.

Interpretation:

• Working Capital Deficit ("Symptoms of Distress"): The company has a significant shortfall in short-term assets versus liabilities, indicating difficulty in meeting immediate obligations without additional financing or asset conversion.
• Negative Net Assets ("Underlying Illness"): The company’s liabilities exceed assets, suggesting accumulated losses or insufficient capital injection. This could hamper long-term viability if not addressed.
• Stable Employee Numbers: The small and stable workforce implies limited operational expansion, which may contain overhead costs but also limits revenue scaling.

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3. Diagnosis

PROCLASS HEALTHCARE SOLUTIONS LIMITED is currently exhibiting signs of financial distress primarily due to inadequate liquidity and negative net assets. The working capital shortage suggests unhealthy cash flow management or undercapitalization. While the company is still active and has no overdue filings, the financial position reflects an illness that requires immediate attention to avoid worsening prognosis.

The slight improvement from a net assets deficit of £-14,106 in 2023 to £-12,159 in 2024 might indicate initial steps toward financial recovery, but the company remains financially unwell. Its micro-entity scale and limited staff imply that any cash flow issues could rapidly impact operations.

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4. Recommendations

To improve financial wellness, the company should consider:

1. Boost Liquidity ("Improve Vital Signs")

   • Seek additional working capital through equity injections from shareholders or short-term financing facilities.
   • Accelerate receivables collection and manage payables to enhance cash flow.

2. Cost Control and Efficiency

   • Review operational expenses to reduce overheads without compromising core activities.
   • Explore opportunities to increase revenue streams within the social work and healthcare sector to improve profitability.

3. Financial Monitoring

   • Implement strict cash flow forecasting and management tools to detect liquidity issues early.
   • Regularly review financial statements and key ratios to track progress and adjust strategies accordingly.

4. Stakeholder Engagement

   • Communicate transparently with shareholders and creditors to build confidence and explore restructuring if necessary.
   • Consider professional advice on restructuring or turnaround strategies if financial strain persists.

5. Strengthen Capital Base

   • Evaluate potential for grants, subsidies, or partnerships given the company’s healthcare/social work domain, which might attract supportive funding.

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Executive Summary