Company Number: 13803540

Analysis Date: 2025-07-29 17:10 UTC

Financial Health Assessment for PROCURA GLOBAL LIMITED

---

1. Financial Health Score: D

Explanation:
PROCURA GLOBAL LIMITED shows clear symptoms of financial distress, with negative net assets and working capital deficiencies. The company’s financial "vital signs" indicate a fragile condition that requires urgent attention to avoid further deterioration.

---

2. Key Vital Signs

Metric	2023 (£)	Interpretation
Net Current Assets (Working Capital)	(3,079) (liability)	Negative working capital indicates short-term liquidity issues – "cash flow congestion."
Net Assets (Total equity)	(73,415) (liability)	Negative net assets signal insolvency risk; liabilities exceed assets. "Underlying structural weakness."
Shareholders’ Funds	(73,415) (liability)	Equity wiped out by accumulated losses; shareholders have no "buffer."
Debtors (Receivables)	0 (nil)	Absence of receivables may indicate lack of incoming funds or sales on credit.
Creditors due within 1 year	9,416	Substantial short-term obligations demanding immediate payment. "Pressing symptom."
Creditors due after 1 year	70,336	Long-term liabilities significantly high; adds burden on future cash flows.

Additional Notes:

• Company has only 1 employee, indicating a very small operational scale.
• No audit required; accounts unaudited, which may limit transparency.
• Share capital is minimal (£121), providing little capital cushion.
• No reported cash at bank in 2022 but £6,337 in 2023, a positive sign for liquidity.
• Debtors have decreased from £121 to nil, which may imply decline in sales or collection issues.

---

3. Diagnosis

PROCURA GLOBAL LIMITED is currently in a precarious financial state. The company exhibits classic "symptoms of distress": negative working capital and net asset deficit, indicating it cannot comfortably meet short-term obligations and is technically insolvent on a balance sheet basis. The significant long-term liabilities further strain the company’s financial health, suggesting reliance on debt financing without adequate asset backing.

The lack of receivables and minimal equity suggest operational challenges, possibly low sales volume or delayed payments. While there is some cash presence in 2023, it’s insufficient to cover immediate liabilities. The company’s small scale (single employee) and recent incorporation (2021) may indicate it is in a startup phase but is struggling to establish financial stability.

The director changes in early 2025 hint at possible management restructuring, which could be a response to the financial condition.

---

4. Recommendations

To restore a healthier financial state, the company should consider the following steps:

• Improve Liquidity: Boost cash inflows by accelerating receivables collection or securing short-term financing. Explore debtor credit control enhancements or new client acquisition to increase sales.

• Restructure Debt: Negotiate with creditors to extend payment terms or reduce liabilities, especially the significant long-term debts, to relieve pressure on cash flow.

• Capital Injection: Seek additional equity investment to eradicate negative net assets and create a financial buffer. Engage shareholders or new investors for fresh capital.

• Cost Control: Review and reduce operating expenses to preserve cash. With only one employee, focus on efficient resource allocation.

• Financial Reporting: Consider audited accounts to enhance transparency and trust with lenders and investors, aiding future financing opportunities.

• Strategic Review: Assess the business model and market positioning. Given the wholesale trade SIC classification, evaluate supply chain efficiency and client base to improve profitability.

---