S&D CAPITAL LIMITED

Executive Summary

S&D CAPITAL LIMITED is currently in a financially critical condition, marked by zero cash reserves, negative working capital, and insolvency reflected in negative net assets. The liquidation of investments during the year provided temporary relief but failed to restore liquidity. Immediate capital injection and cost restructuring are essential to stabilize the company’s financial health and ensure its survival.

S&D CAPITAL LIMITED - Analysis Report

Company Number: 13582687

Analysis Date: 2025-07-29 16:05 UTC

Financial Health Assessment of S&D CAPITAL LIMITED

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1. Financial Health Score: D

Explanation:
S&D CAPITAL LIMITED currently exhibits significant financial distress, primarily due to persistent negative net assets and working capital deficits. The company’s liabilities exceed its assets, indicating insolvency from a balance sheet perspective. While the director maintains confidence in continuing as a going concern, the financial “symptoms” point to serious challenges in liquidity and solvency that merit immediate attention.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Cash	0	Zero cash balance signals critical liquidity strain; "no pulse" in cash flow.
Current Liabilities	123,124	Short-term debts remain significant relative to assets.
Net Current Assets (Working Capital)	-123,124	Negative working capital; company cannot cover short-term debts with current assets.
Total Assets Less Current Liabilities	-123,124	Indicates total liabilities exceed assets; "balance sheet anemia."
Net Assets (Shareholders’ Funds)	-123,124	Negative equity; shareholders' funds wiped out, indicating insolvency.
Fixed Asset Investments	0 (down from £942,392 in 2023)	Complete disposal of investments in year; possible distress sale or strategy shift.
Share Capital	100	Minimal capital base; limited buffer for losses.
Number of Employees	1	Micro-business scale; limited operational capacity.

Trend Notes:

• From 2021 to 2024, net assets have remained negative and worsened slightly.
• Fixed asset investments, which previously provided substantial value (£942k in 2023), were fully liquidated by 2024, leaving no long-term asset base.
• Cash reserves have depleted from £78k in 2021 to zero in 2024, signaling “circulatory collapse” in liquidity.
• Current liabilities have significantly decreased from £952k in 2023 to £123k in 2024, possibly due to debt restructuring or repayments, but remain a substantial burden given zero current assets.

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3. Diagnosis

Financial Condition:
S&D CAPITAL LIMITED is in a precarious financial state akin to a patient exhibiting critical symptoms of distress. The absence of cash and negative working capital indicate an inability to meet short-term obligations without external support. Negative net assets highlight insolvency risks, meaning liabilities outstrip total assets even after liquidation of investments.

The disposal of fixed asset investments during the year suggests a strategic attempt to raise liquidity, but the zero cash balance at year-end implies these proceeds have been used to cover liabilities or operational losses.

The director’s note on going concern status depends on continued financial support from management, highlighting reliance on “external intervention” to sustain operations.

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4. Recommendations

To improve financial wellness and restore vitality, the company should consider the following steps urgently:

1. Inject Working Capital:

   • Secure fresh capital infusion from shareholders or external lenders to re-establish a healthy cash buffer and meet short-term liabilities.

2. Cost Restructuring:

   • Review and reduce operational expenses to preserve cash flow; consider scaling down activities to match financial capacity.

3. Debt Management:

   • Negotiate with creditors for extended payment terms or restructuring to reduce immediate cash outflows.

4. Asset Strategy:

   • Reassess investment approach; with no fixed assets, explore acquiring income-generating assets cautiously once liquidity improves.

5. Financial Monitoring:

   • Implement rigorous cash flow forecasting and financial controls to detect “symptoms” early and prevent future crises.

6. Director Support:

   • Ensure management’s financial backing is formalized and sustainable to maintain going concern viability.

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