SELECT (CO-OP) LIMITED

Executive Summary

SELECT (CO-OP) LIMITED is currently facing significant financial distress characterized by negative working capital and net liabilities, indicating liquidity and solvency challenges. Immediate financial restructuring and governance stabilization are critical to avoid insolvency and support future viability in the building development sector.

SELECT (CO-OP) LIMITED - Analysis Report

Company Number: 13114985

Analysis Date: 2025-07-20 15:30 UTC

Financial Health Assessment: SELECT (CO-OP) LIMITED

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1. Financial Health Score: D (Poor)

Explanation:
The company exhibits clear symptoms of financial distress, primarily due to its negative net current assets (working capital) and net liabilities position. This indicates liquidity challenges and a fragile financial structure. The absence of employees and minimal current assets further reinforce concerns about operational capacity and cash flow health.

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2. Key Vital Signs:

Metric	Value (£)	Interpretation
Current Assets	2,721	Very low short-term resources available to cover immediate obligations.
Current Liabilities	32,660	High short-term debts relative to assets, indicating looming cash flow strain.
Net Current Assets (Working Capital)	-29,939	Negative by a large margin, a critical symptom of liquidity distress.
Total Net Assets (Equity)	-29,939	Company is insolvent on a balance sheet basis; liabilities exceed assets.
Share Capital	1,000	Minimal equity base, insufficient to cushion losses or absorb shocks.
Number of Employees	0	No staff employed, possibly indicating inactivity or suspended operations.

Additional Observations:

• The company is classified as a Micro entity, limiting detailed financial disclosures but the available data is sufficient to highlight financial distress.
• The company has undergone several director changes recently, which might reflect governance or strategic challenges.
• Significant control is held by an individual and an investment company based overseas, which may affect operational oversight.

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3. Diagnosis:

The company is currently in a financially unhealthy state. The "vital signs" reveal a lack of liquidity and solvency, with net liabilities of nearly £30k against current assets of only £2.7k. This means the company cannot meet its immediate obligations from its liquid assets—a classic symptom of financial distress akin to a patient whose vital signs show dangerously low blood pressure and oxygen levels.

The absence of employees and minimal share capital suggest the company might be dormant or in the early stages of development with limited operational activity. However, the persistent negative working capital over two consecutive years indicates ongoing financial strain, not a one-off anomaly.

Repeated director resignations and appointments within a short timeframe may signify instability in management, which can exacerbate financial difficulties. The company's primary SIC code (41100) indicates it operates in building development—a capital-intensive sector requiring strong financial foundations, which this company currently lacks.

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4. Recommendations:

1. Immediate Cash Flow Management:
   The company must urgently address its liquidity crisis. If possible, inject fresh equity or secure short-term financing to cover current liabilities and avoid insolvency risks.

2. Operational Review:
   Evaluate whether the company’s business activities are viable. With zero employees and minimal assets, it may be necessary to either restart operations with a clear business plan or consider restructuring.

3. Governance Stability:
   Stabilize the board and management team to ensure consistent strategic direction. Frequent director changes can erode stakeholder confidence and impact financial negotiations.

4. Financial Restructuring:
   Explore options such as debt renegotiation with creditors or consider formal insolvency procedures if the financial situation does not improve, to protect creditors and owners.

5. Strategic Planning:
   Develop a detailed business plan with realistic financial projections, focusing on building working capital and achieving operational cash flow positivity.

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