RED STEPPE LTD

Executive Summary

RED STEPPE LTD shows concerning financial health with negative net assets and working capital, indicating liquidity stress and potential solvency issues. Immediate actions to improve cash flow and restructure liabilities are essential to avoid financial failure. With focused management and capital support, the company can stabilize its position and work towards sustainable operations.

RED STEPPE LTD - Analysis Report

Company Number: 14528398

Analysis Date: 2025-07-29 12:57 UTC

Financial Health Assessment for RED STEPPE LTD (As of 31 December 2024)

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1. Financial Health Score: D

Explanation:
RED STEPPE LTD’s financial data presents clear symptoms of distress. The company exhibits persistent negative net current assets (working capital), meaning its short-term liabilities exceed its current assets, which is a serious liquidity concern and an indicator of potential cash flow problems. The company’s net assets are negative and deteriorating year-over-year. Despite being a micro-entity, the financial position is weak, warranting a below-average grade.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	836	Very low cash and short-term assets to cover immediate liabilities.
Current Liabilities	4,300	High short-term obligations relative to assets.
Net Current Assets (Working Capital)	-3,464	Negative; red flag for liquidity problems and day-to-day operations.
Net Assets (Shareholders' Funds)	-3,464	Negative equity indicates liabilities exceed total assets.
Number of Employees	0	No staff, which may mean minimal operational costs but also limited operational capacity.
Account Category	Micro	Minimal filing requirements but financial health is still critical.

Interpretation:

• Healthy cash flow is absent. The company’s short-term debts more than outweigh its liquid resources, akin to a patient with dangerously low blood pressure that cannot sustain vital functions.
• Persistent negative net assets (equity) resemble chronic conditions where the company’s liabilities are greater than assets, risking insolvency if no corrective measures are taken.
• Lack of employees suggests either a very lean operating model or minimal business activity, which might limit revenue generation capacity.

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3. Diagnosis: Financial Condition Overview

RED STEPPE LTD is currently experiencing financial distress, characterized by insufficient liquidity and negative net worth. The company’s balance sheet shows that it owes more in short-term debts than it owns in assets, which is a critical symptom indicating the company may struggle to meet its immediate obligations without additional capital or restructuring.

The absence of employees and the micro-entity status suggest this might be an early-stage or holding-type company, but the financial indicators are not consistent with a stable growth phase. The negative working capital and shareholders’ funds indicate that the company’s financial foundations are weak and vulnerable to external shocks.

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4. Recommendations: Prescriptions for Financial Wellness

• Improve Liquidity: The company must inject fresh capital or access short-term financing to cover liabilities and stabilize cash flow. This is like administering fluids to a dehydrated patient to restore balance.
• Cost Management: Review and minimize any recurring obligations or debts. Even with zero employees, creditor management is vital to reduce pressure on cash flow.
• Revenue Generation: If not already active, focus on operational activities to generate consistent income streams. This will strengthen assets and improve net current assets over time.
• Financial Restructuring: Consider negotiating with creditors to extend payment terms or reduce liabilities to better align with asset values.
• Regular Monitoring: Implement monthly cash flow forecasts and financial reviews to detect early warning signs and respond promptly.
• Professional Advice: Seek strategic advice on business restructuring or capital raising to prevent insolvency risks.

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