QADRI DEVELOPMENT LTD

Executive Summary

QADRI DEVELOPMENT LTD is currently in a fragile financial state, with very limited equity and negative working capital indicating liquidity challenges. While the company holds valuable fixed assets, its ability to meet short-term obligations is constrained, necessitating urgent focus on improving cash flow and strengthening its equity base. Immediate action on liquidity and debt management will be crucial to stabilize and support future growth.

QADRI DEVELOPMENT LTD - Analysis Report

Company Number: 12953305

Analysis Date: 2025-07-20 19:07 UTC

Financial Health Assessment for QADRI DEVELOPMENT LTD (as at 31 March 2024)

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1. Financial Health Score: D

Explanation:
The company exhibits signs of financial fragility, primarily due to extremely low net assets and a precarious balance between liabilities and assets. While it remains active and compliant with filing deadlines, the underlying financial structure shows symptoms that warrant cautious attention and remedial measures.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	116,260	The company holds significant long-term assets (likely property or development projects), a positive sign of asset base strength.
Current Assets	169	Very low liquid or short-term assets; signals limited available cash or receivables to meet immediate expenses.
Current Liabilities	115,927	High short-term obligations nearly equal to fixed assets. Risky for liquidity.
Net Current Assets (Working Capital)	-331	Negative working capital indicates strain on day-to-day operations and a potential cash flow "heart attack."
Net Assets (Equity)	2	Almost zero equity; shareholder funds are minimal, indicating the company is "on life support."
Share Capital	2	Minimal paid-in capital, showing limited initial funding or equity buffer.
Average Number of Employees	1	Very small workforce, consistent with micro-entity classification and low operational scale.

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3. Diagnosis: What the Financial Data Reveals

QADRI DEVELOPMENT LTD is a micro-entity focused on building project development, with a significant investment in fixed assets but almost negligible liquid assets and equity. The company’s total liabilities (both current and non-current) closely match its asset base, leaving almost no margin to absorb financial shocks or operational setbacks.

The negative net current assets reveal a symptom of potential liquidity distress — the company may struggle to meet short-term obligations without relying on asset sales or additional funding. The near-zero net assets (equity) suggest the company’s "financial health" is at a critical low, akin to a patient with dangerously low vital signs.

The company has remained compliant with statutory filings and is operationally active, which is positive. However, the financial structure signals vulnerability, especially if the company needs to expand or withstand unexpected expenses.

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4. Recommendations: Steps to Improve Financial Wellness

• Improve Liquidity:
  The company should prioritize increasing current assets, particularly cash or receivables, to build a buffer for short-term obligations. This might involve negotiating better payment terms with customers or securing short-term financing.

• Strengthen Equity Base:
  Consider a capital injection or seek new investors to increase shareholder funds, providing a stronger foundation and reducing financial risk.

• Review Liabilities:
  Explore refinancing or restructuring current liabilities to ease immediate cash flow pressures. Negotiating longer payment terms or converting short-term debt into longer-term obligations can improve working capital.

• Asset Utilization:
  Evaluate the fixed assets to ensure they are generating sufficient returns or consider monetizing underutilized assets to improve liquidity.

• Operational Efficiency:
  With a minimal workforce, ensure the business model is scalable and cost-effective. Tight control over expenses and project management will help sustain operations.

• Financial Monitoring:
  Regularly track cash flow forecasts, and key financial ratios to detect early warning signs of distress and respond proactively.

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