PROJECTS 11 DEVELOPMENTS LTD

Executive Summary

PROJECTS 11 DEVELOPMENTS LTD is currently exhibiting signs of financial distress, including negative net assets and sharply decreased liquidity, indicating a fragile financial condition. Immediate action to manage cash flow, control costs, and explore strategic restructuring is essential to improve its financial health and avoid insolvency risks.

PROJECTS 11 DEVELOPMENTS LTD - Analysis Report

Company Number: 13514029

Analysis Date: 2025-07-19 13:02 UTC

Financial Health Assessment for PROJECTS 11 DEVELOPMENTS LTD

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1. Financial Health Score: D

Explanation:
The company shows clear symptoms of financial distress in its latest year (2024), with negative net assets and a sharp deterioration in liquidity. While it was marginally solvent in prior years, the significant decline in current assets and increase in net current liabilities indicate unhealthy cash flow and potential solvency risk.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	0	1,499	Complete write-down or disposal of fixed assets, possibly reflecting asset sales or impairment.
Current Assets	92	9,459	Drastic decrease, indicating severely reduced cash or receivables—"dry throat" symptom for liquidity.
Current Liabilities	1,743	10,731	Improved (reduced) but still exceeds current assets, indicating short-term obligations likely unmet.
Net Current Assets	-1,651	-1,272	Negative and worsening working capital—"poor circulation" warning sign.
Total Net Assets	-1,651	227	Shift from positive equity to negative net worth, indicating insolvency "symptom."
Shareholders' Funds	-1,651	227	Negative retained funds, eroding shareholder value.
Number of Employees	1	3	Workforce reduction indicating possible downsizing or operational contraction.

Summary: The company’s balance sheet shows a transition from a slightly positive net asset base to a negative position within a year. The substantial drop in current assets and disappearance of fixed assets, coupled with negative working capital, signal liquidity and solvency challenges.

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3. Diagnosis

• Cash Flow & Liquidity: The drastic fall in current assets from £9,459 in 2023 to only £92 in 2024 indicates a severe cash flow problem. This "drying up" of liquid resources restricts the company’s ability to meet short-term debts and operational expenses.

• Solvency: Negative net assets and shareholders’ funds (-£1,651) suggest the company is technically insolvent at the balance sheet date. This is a critical "symptom of distress" that requires urgent attention to avoid insolvency proceedings.

• Asset Management: The elimination of fixed assets implies the company may have sold or written off its long-term assets, possibly to generate cash or due to impairment. This may hinder future operational capacity or growth potential.

• Operational Scale: The drop in average employees from 3 to 1 hints at downsizing or reduced business activity, possibly a response to financial strain.

• Overall Financial Condition: The company is currently in a fragile state, with limited liquidity, negative equity, and reduced operational scale. While it remains active and not in liquidation or administration, these "symptoms" point to serious financial health concerns.

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4. Recommendations

1. Immediate Cash Flow Management:

   • Prioritize collecting receivables and managing payables to improve liquidity.
   • Consider short-term financing options or overdraft facilities to cover urgent liabilities.

2. Asset Review:

   • Assess whether any remaining assets can be leveraged or monetized to improve cash position.
   • Avoid further asset disposals that could impair future earning capacity unless absolutely necessary.

3. Cost Control and Operational Efficiency:

   • Continue evaluating the cost base; consider further staff and overhead reductions to align with current business volume.
   • Review contracts and commitments to minimize fixed costs.

4. Strategic Business Review:

   • Explore new revenue streams, partnerships, or restructuring opportunities to restore profitability and rebuild equity.
   • Engage professional advice on turnaround strategies to avoid insolvency risks.

5. Stakeholder Communication:

   • Keep shareholders and creditors informed transparently to maintain confidence and negotiate terms if needed.
   • Monitor compliance with filing deadlines and maintain good governance to avoid regulatory complications.

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