RUTLAND SOLUTIONS LTD

Executive Summary

RUTLAND SOLUTIONS LTD has experienced a significant decline in financial health, shifting from stable net assets to negative equity and working capital in 2024, signaling urgent liquidity and solvency concerns. Immediate financial management actions and potential capital support are essential to restore stability and secure the company's future viability.

RUTLAND SOLUTIONS LTD - Analysis Report

Company Number: 13517439

Analysis Date: 2025-07-20 16:16 UTC

Financial Health Assessment for RUTLAND SOLUTIONS LTD

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1. Financial Health Score: D

Explanation:
The company shows signs of significant financial stress in the latest accounting period. While previous years displayed positive net assets and working capital, the 2024 accounts reveal a sharp deterioration with negative net current assets and overall negative net assets. This indicates a "symptom of distress," akin to a patient suddenly exhibiting severe signs of ill health after a period of stability.

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2. Key Vital Signs

Metric	2024	Interpretation
Fixed Assets	£401	Sharp decline from £6,000 in prior years, possible asset disposals or write-downs.
Current Assets	£10,113	Increased compared to prior years, showing some liquidity but not sufficient.
Current Liabilities	£30,338	New significant short-term obligations introduced; much higher than current assets causing distress.
Net Current Assets (Working Capital)	-£20,225	Negative working capital signals inability to cover short-term debts with liquid assets.
Net Assets (Shareholders Funds)	-£19,824	Negative equity implies liabilities exceed assets, a critical financial "symptom."
Employee Count	2	Slight increase, indicating some growth in workforce despite financial pressures.
Share Capital	£100	Minimal equity base, limiting financial resilience.

Contextual Notes:

• Negative net current assets and net assets are red flags signaling liquidity and solvency issues.
• The company’s micro-entity status means accounts are less detailed, but the balance sheet still clearly indicates distress.
• Directors have not required an audit, consistent with micro-entity provisions, but this limits external validation of financial health.

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3. Diagnosis

RUTLAND SOLUTIONS LTD's financial "vital signs" have dramatically worsened in the 2024 financial year. The company has shifted from a position of positive net assets and working capital to one where liabilities exceed assets by nearly £20k. This is comparable to a patient who was stable but now has an acute condition requiring urgent attention.

The negative working capital suggests the company may struggle to meet its short-term obligations, potentially leading to cash flow crises. The significant increase in current liabilities without a corresponding increase in current assets is particularly concerning.

Despite this, the company remains active with a small but growing workforce, indicating ongoing operations. The directors and shareholders must be vigilant and proactive to prevent further deterioration.

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4. Recommendations

• Immediate Cash Flow Management:
  Prioritize improving liquidity by accelerating receivables collection, negotiating extended payment terms with suppliers, or seeking short-term financing to cover current liabilities.

• Cost Control and Asset Review:
  Evaluate operational costs and consider reducing expenses or divesting non-core or underperforming assets to strengthen the balance sheet.

• Equity Injection:
  Consider new capital injections from shareholders or external investors to restore positive net assets and improve financial stability.

• Financial Monitoring:
  Implement frequent financial health checks and cash flow forecasts to detect early warning signs and adjust business strategy promptly.

• Professional Advice:
  Engage financial advisors or insolvency practitioners early to explore restructuring options and avoid formal insolvency proceedings.

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Executive Summary