QUAXITAS LTD

Executive Summary

Quaxitas Ltd is currently in a fragile financial state characterized by negative net assets and a significant working capital deficit, signaling liquidity challenges and potential solvency risks. Immediate actions to improve cash flow, reduce costs, and strengthen the balance sheet are crucial to stabilize the company’s financial health and ensure sustainable operations going forward.

QUAXITAS LTD - Analysis Report

Company Number: 14597004

Analysis Date: 2025-07-29 13:05 UTC

Financial Health Assessment for Quaxitas Ltd as of 16 July 2024

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1. Financial Health Score: D

Explanation:
Quaxitas Ltd is currently exhibiting clear symptoms of financial distress. The company has negative net assets (shareholders' funds of -£10,042) and a significant working capital deficit (negative net current assets of -£15,252). These signs point to solvency concerns typical of an entity with financial strain, meriting a grade of D. While not yet insolvent, the company must take urgent remedial actions to restore financial health.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£8,930	Small asset base typical of a micro company.
Current Assets	£13,420	Limited liquid resources; cash, receivables, inventory combined.
Current Liabilities	£28,672	Short-term debts and payables exceed current assets by a wide margin.
Net Current Assets (Working Capital)	-£15,252	Negative working capital indicates liquidity strain—"cash flow cold symptoms."
Total Assets Less Current Liabilities	-£6,322	Company owes more than it owns after short-term debts considered.
Net Assets / Shareholders' Funds	-£10,042	Negative equity signals accumulated losses or over-leveraging.
Number of Employees	3	Small team consistent with micro entity status.
Account Category	Micro	Minimal filing requirements, but financials still critical to monitor.

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3. Diagnosis: What the Financial Data Reveals

Quaxitas Ltd is a newly incorporated micro private limited company in the performing arts and related sectors. The financial statements to 16 July 2024 reveal the company is operating with a negative net asset base and a working capital deficit. This suggests the company has been funding its operations through liabilities exceeding its liquid resources, a "symptom of financial distress."

The negative shareholders’ funds indicate that the company has likely incurred losses or accrued obligations greater than its capital contributions. The current liabilities nearly double the current assets, implying potential challenges meeting short-term obligations without additional funding or improved cash inflows.

The company is not in liquidation or administration but is experiencing financial pressure which, if unaddressed, poses risks to ongoing operational viability.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Liquidity:
  Inject additional capital or secure short-term financing to cover immediate liabilities and restore positive working capital. This is akin to providing a "financial transfusion" to revive cash flow.

• Cost Control and Cash Flow Management:
  Review and reduce operating expenses, delay non-essential payments, and accelerate receivables collection to preserve cash. Establish a strict cash flow forecast to monitor "vital signs" regularly.

• Revenue Enhancement:
  Explore opportunities to increase sales or diversify income streams within the performing arts and education sectors to generate healthier cash inflows.

• Financial Restructuring:
  Engage with creditors to negotiate payment terms or restructure debt to ease short-term pressures.

• Regular Monitoring:
  Implement monthly financial reviews to detect early symptoms of distress and adjust strategies promptly.

• Seek Professional Advice:
  Consider consulting financial advisors or turnaround specialists to guide recovery efforts and avoid progression to insolvency.

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Executive Summary