PROGRAMME ONE *PO LTD

Executive Summary

Programme One *PO Ltd is currently facing financial strain characterized by negative working capital and equity, indicating liquidity and capitalization challenges. While the company remains operational with support from its controlling party, immediate actions to improve cash flow and secure additional funding are critical to stabilize its financial health and ensure sustainable operations.

PROGRAMME ONE *PO LTD - Analysis Report

Company Number: 13599363

Analysis Date: 2025-07-20 11:02 UTC

*Financial Health Assessment: Programme One PO Ltd

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1. Financial Health Score: D

Explanation:
The company shows significant financial strain with net current liabilities and negative shareholder funds for three consecutive years. This indicates a symptom of financial distress, akin to a patient with chronic health issues that are not yet critical but require urgent intervention. The negative working capital and shareholders' funds reveal that the company's short-term obligations exceed its liquid assets, suggesting liquidity challenges and potential solvency concerns.

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2. Key Vital Signs (Core Financial Metrics):

Metric	2023 Value (£)	Interpretation
Current Assets	44,000	Limited short-term resources; includes £9k cash and £35k debtors.
Current Liabilities	59,976	Debts and obligations due within one year, including £53k owed to group undertakings.
Net Current Assets (Working Capital)	-15,976	Negative working capital; a symptom of liquidity stress.
Shareholders’ Funds (Equity)	-15,976	Negative equity; indicates accumulated losses or undercapitalization.
Turnover	Not disclosed	No turnover data available, limiting revenue analysis.

Additional Observations:

• The company is a private limited by guarantee without share capital, which may limit equity injection options.
• The controlling party is Goodman Masson Limited, which also holds significant creditor balances, potentially signaling intra-group financing.
• The company has one employee, indicating a micro-scale operation.

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3. Diagnosis: Financial Condition Assessment

The financial "vitals" reveal symptoms consistent with a company facing liquidity and capitalization challenges:

• Negative Working Capital: The company’s current liabilities exceed current assets by nearly £16k, reflecting an inability to cover short-term debts with available liquid resources. This is akin to a patient whose immediate energy reserves are insufficient to meet urgent demands.

• Negative Shareholders' Funds: The company’s equity is negative, showing accumulated losses or insufficient capital buffers. Without share capital, recovery relies on guarantees or additional financial support.

• Reliance on Group Funding: A large portion of current liabilities (£53k) is owed to Goodman Masson Limited, the ultimate controlling party. This suggests dependence on intra-group financing to sustain operations, which might be a stabilizing factor but also indicates external funding needs.

• Going Concern Statement: Directors express a reasonable expectation of continuing operations, but the financial indicators suggest close monitoring is necessary to avoid deterioration.

• Limited Operational Scale: With one employee and no disclosed turnover, the business appears to be in early stages or limited activity, possibly affecting cash inflows.

Overall, the company exhibits financial weakness similar to a patient with a manageable but persistent chronic condition that requires careful treatment and monitoring to prevent acute failure.

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4. Recommendations: Actions to Improve Financial Wellness

1. Improve Liquidity (Boost Cash Flow):

   • Accelerate debtor collections to convert £35k trade receivables into cash faster.
   • Negotiate extended payment terms with creditors, especially intra-group balances, to ease short-term cash pressure.

2. Increase Capital Base or Financial Support:

   • Explore guarantees or additional funding from members or controlling parties to restore positive equity.
   • Consider formal capital injections if possible, even though the company is limited by guarantee.

3. Revenue Generation and Cost Control:

   • Clarify and grow turnover by securing more client contracts or placements to enhance operating cash inflows.
   • Review and minimize overhead expenses to conserve cash reserves.

4. Regular Financial Monitoring:

   • Implement monthly cash flow forecasts to detect emerging liquidity issues early.
   • Monitor debtor aging to prevent bad debts and provisions.

5. Governance and Transparency:

   • Maintain regular communication with stakeholders, including controlling parties, to align on financial recovery plans.
   • Consider professional advice if financial stress escalates.

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