Company Number: 13885543

Analysis Date: 2025-07-29 14:15 UTC

Financial Health Assessment Report for QUADACE LTD.

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1. Financial Health Score: D

Explanation:
The company's financial health score is a D grade due to persistent negative net assets and net current liabilities, indicating a fragile liquidity position and potential solvency concerns at this early stage of operations. While the company is still operating and filings are up to date, the very thin margin of working capital and negative equity warrants careful attention.

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2. Key Vital Signs (Core Metrics)

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	462	21	Very low cash and receivables; slight improvement in 2024 but still minimal.
Current Liabilities	466	23	Slightly exceeding current assets, indicating short-term obligations exceed readily available resources.
Net Current Assets (Working Capital)	-4	-2	Negative working capital, a symptom of liquidity stress.
Net Assets (Equity)	-4	-2	Negative equity signals that liabilities exceed assets, a sign of financial distress.
Average Employees	1	1	Very small operation, consistent with micro-entity classification.

Interpretation of Vital Signs:
The vital signs resemble symptoms of a patient with low energy reserves—minimal cash or assets to cover immediate obligations. The negative net assets and working capital highlight an underlying weakness in the company’s financial structure that could impair its ability to meet short-term debts or fund growth without external support.

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3. Diagnosis: Financial Condition Analysis

• Liquidity Stress: The company shows symptoms of liquidity strain, with current liabilities slightly exceeding current assets. This means the company might struggle to cover immediate bills if not managed carefully.

• Capital Deficiency: Negative net assets indicate the company has been operating at a loss or accruing liabilities not balanced by assets. This can be likened to a patient with a prolonged nutrient deficiency, weakening the body’s core strength.

• Early Stage & Micro Scale: Incorporated in 2022 and classified as a micro-entity, the company is very young and small. Early-stage businesses often operate with tight financial margins as they establish themselves.

• Single Shareholder Control: The 75-100% ownership and director control by Ms. Darlene Bautista Aromin provide stable decision-making but also concentrate financial risk at one individual.

• No Audit & Simplified Reporting: As a micro-entity, the company benefits from simplified accounting and exemption from audit, which limits detailed external scrutiny but reduces compliance costs.

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4. Recommendations: Actions to Improve Financial Wellness

• Improve Working Capital Management:
  Aim to boost current assets, particularly cash reserves, to comfortably exceed current liabilities. This could involve tighter credit control, accelerating receivable collections, or negotiating longer payment terms with suppliers.

• Inject Equity or Secure Financing:
  Address the negative equity by considering capital injection from the shareholder or seeking external financing (e.g., loans, grants). This will provide a stronger financial buffer and reduce solvency risks.

• Monitor Cash Flow Closely:
  Maintain a healthy cash flow by forecasting inflows and outflows weekly/monthly. Healthy cash flow is essential to avoid symptoms of financial distress.

• Cost Control and Revenue Growth:
  As a micro business in hospital activities, focus on controlling operational costs and identifying revenue opportunities to improve profitability and build retained earnings.

• Plan for Scalability and Compliance:
  As the company grows, prepare for filing requirements beyond micro-entity thresholds and consider professional accounting advice to optimize financial strategy.

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