SAAS MINING CONSULTANCY LTD

Executive Summary

SAAS MINING CONSULTANCY LTD exhibits signs of financial distress with a significant deterioration in liquidity and solvency in its latest financial year, reflected by negative net current assets and net worth. Immediate action on cash flow management, debt restructuring, and potential capital injection is essential to stabilize and improve the financial health of the company.

SAAS MINING CONSULTANCY LTD - Analysis Report

Company Number: 13518555

Analysis Date: 2025-07-29 12:56 UTC

Financial Health Assessment for SAAS MINING CONSULTANCY LTD

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1. Financial Health Score: D

Explanation:
The company's financial health score is graded D due to significant negative working capital and net asset position in the latest financial year (2024). While the company has been active since 2021 and has a single director with full control, the financial data reveals symptoms of financial distress, particularly in liquidity and solvency, which warrant attention and remedial action.

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2. Key Vital Signs

Metric	2024 Value	2023 Value	Interpretation
Current Assets	£5,410	£7,863	Declining liquid resources; cash/debtors shrinking
Current Liabilities	£20,897	£7,595	Sharp increase in short-term debts, concerning liquidity
Net Current Assets	-£15,487	£268	Shift from positive to significant negative working capital, indicating inability to cover short-term debts with available assets
Net Assets (Shareholders' Funds)	-£16,249	£268	Negative net worth reflects liabilities exceeding assets; a critical red flag
Average Number of Employees	1	1	Small micro-entity with minimal staffing, fixed cost base likely low

Interpretation of Vital Signs:

• Healthy cash flow would generally reflect positive net current assets and increasing current assets. Here, the drastic fall from positive working capital to a large deficit indicates "symptoms of financial distress," such as liquidity problems or escalating short-term debts.
• Negative net assets suggest the company’s liabilities surpass its assets, akin to a patient whose vital organ functions are compromised—this is a serious symptom needing urgent intervention.
• The sharp increase in current liabilities (almost tripling) alongside falling current assets points to potential cash flow management issues or increased short-term borrowing.

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3. Diagnosis

The financial data reveals that SAAS MINING CONSULTANCY LTD is currently in a fragile financial condition. The company was solvent with a small positive net asset base in prior years but has deteriorated sharply by FY2024:

• Liquidity crisis: The company does not have sufficient current assets to cover its short-term obligations, exposing it to risks of payment delays or inability to meet creditor demands.
• Solvency concerns: Negative net assets mean the company’s total liabilities exceed its assets, which may affect creditor confidence and the ability to raise capital.
• Operational scale: With only one employee and a micro-entity status, the company likely has low overhead costs, but the financial deterioration suggests revenue or receivables issues, or rising payables.
• Control and governance: The sole director holds full control, which can be advantageous for swift decisions but also concentrates risk.

The "symptoms" suggest the business is under financial stress, potentially from cash flow mismanagement, increased short-term borrowing, or declining income. Without corrective action, this could lead to insolvency.

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4. Recommendations

To restore financial health, the company should consider the following actions:

• Urgent Cash Flow Management: Implement strict monitoring of cash inflows and outflows. Prioritize collection of receivables and negotiate extended payment terms with creditors to ease liquidity pressure.
• Review and Reduce Short-term Liabilities: Investigate the cause of the large increase in current liabilities. Where possible, restructure or refinance debt to longer terms to reduce immediate burden.
• Cost Control: Although staffing is minimal, review all operational expenses for potential savings or deferrals.
• Capital Injection: Consider equity financing or director loans to restore positive net assets and strengthen the balance sheet.
• Financial Forecasting: Prepare detailed cash flow forecasts to anticipate future liquidity needs and avoid surprises.
• Seek Professional Advice: Engage with a financial advisor or turnaround specialist to explore restructuring options and ensure compliance with legal duties if insolvency risk is present.
• Regular Monitoring: Establish monthly financial reviews to detect early warning signs and take corrective actions promptly.

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