SEHAL SOLUTIONS LTD

Executive Summary

SEHAL SOLUTIONS LTD exhibits critical financial distress with negative net assets and insufficient liquidity to cover short-term liabilities. Immediate capital injection and stringent cash flow management are necessary to restore financial health. Without urgent corrective action, the company risks insolvency and operational failure.

SEHAL SOLUTIONS LTD - Analysis Report

Company Number: 14448248

Analysis Date: 2025-07-20 18:37 UTC

Financial Health Score:
Grade: F (Critical Concern)
Explanation: The company shows a negative net asset position and net current liabilities, indicating severe financial distress. These "symptoms" suggest insolvency risk and inability to meet short-term obligations, requiring urgent attention.

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Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	0	No long-term investments; no capital base.
Current Assets	65	Extremely low liquid assets (cash/debtors).
Current Liabilities	1,100	Short-term debts exceed current assets by a lot.
Net Current Assets	-1,035	Negative working capital; unhealthy liquidity.
Total Assets less Current Liabilities	-1,035	Negative net assets; company owes more than owns.
Shareholders' Funds	-1,035	Equity wiped out; shareholders’ value negative.
Employees	0	No staff employed; no operational workforce.

Interpretation: The company’s "vital signs" reveal a critical liquidity problem. Negative net current assets suggest it cannot cover immediate debts with available liquid resources, akin to a patient with dangerously low blood pressure and impaired vital functions. Furthermore, zero fixed assets and no employees indicate limited operational capacity and asset backing.

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Diagnosis

SEHAL SOLUTIONS LTD is in a state of financial distress. The micro-entity’s balance sheet shows a deficit of £1,035 in net assets and shareholders’ funds, meaning the company’s liabilities exceed its assets. This is a classic symptom of insolvency or at least an inability to meet short-term obligations without external support or new capital injection.

The absence of fixed assets and employees suggests the business has minimal operational activity or is in a startup phase but has already incurred liabilities exceeding its assets. The shortfall between current assets and liabilities points to poor cash flow management or delayed income generation.

From a financial health perspective, this company is not "fit" to grow or sustain operations without urgent intervention. The current financial state may risk creditor action if liabilities are not addressed promptly.

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Recommendations

1. Capital Injection: Immediate infusion of funds is essential to restore positive working capital and net asset balance. This could be through shareholder loans, equity capital, or external financing.

2. Cost Control: Evaluate and minimize any ongoing expenses that contribute to liabilities. With no employees, overheads may be limited but any outstanding payments need urgent management.

3. Increase Revenue: Accelerate sales or operational activity, considering the SIC codes indicate retail via internet or mail order. Marketing and sales efforts should be prioritized to generate cash flow.

4. Cash Flow Monitoring: Implement strict cash flow forecasting and management to avoid further liquidity crises. Maintain sufficient cash reserves to cover short-term debts.

5. Financial Restructuring: Explore negotiating with creditors to extend payment terms or reduce liabilities to improve liquidity.

6. Professional Advice: Engage a financial advisor or insolvency practitioner to assess turnaround strategies or, if necessary, formal insolvency options to protect stakeholders and creditors.

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