SELFSERVICEANALYTICS LTD

Executive Summary

SELFSERVICEANALYTICS LTD is currently facing financial strain characterized by negative net assets and working capital deficits, signaling liquidity and capital erosion issues. While compliance with statutory filings remains intact, urgent action to improve cash flow, reduce costs, and potentially raise capital is essential to stabilize the company’s financial health and avoid insolvency risks.

SELFSERVICEANALYTICS LTD - Analysis Report

Company Number: 13520350

Analysis Date: 2025-07-20 14:27 UTC

Financial Health Assessment for SELFSERVICEANALYTICS LTD (as of 31 March 2024)

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1. Financial Health Score: D

Explanation:
SELFSERVICEANALYTICS LTD currently exhibits clear symptoms of financial distress. The company has persistent negative net assets and working capital deficits, signalling an unhealthy financial state that warrants close monitoring and remedial action. While not yet insolvent or in formal distress (liquidation or administration), the negative equity and lack of cash buffers are concerning for a micro-entity.

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2. Key Vital Signs

Metric	2024 Figure	Interpretation
Current Assets	£1	Critically low liquidity; virtually no cash or short-term assets available to cover liabilities.
Current Liabilities	£3,264	Short-term debts due within one year.
Net Current Assets	-£3,263	Negative working capital, indicating inability to cover current debts with current assets.
Net Assets (Equity)	-£3,263	Company’s liabilities exceed assets by £3,263; shareholders’ funds are negative.
Shareholders’ Funds	-£3,263	Reflects accumulated losses or capital erosion — a symptom of ongoing financial strain.
Average Number of Employees	2	Small scale operation consistent with micro-entity classification.
Account Category	Micro	Minimal filing requirements but still subject to financial health monitoring.
Industry SIC Code	62020	Information technology consultancy — competitive sector requiring investment in skills & tech.

Additional Context:

• Negative net current assets (working capital) indicate liquidity stress: the company cannot immediately pay its short-term debts from available assets.
• Negative net assets mean the company’s total liabilities exceed its assets, a sign of capital erosion analogous to a weakening heartbeat in a patient.
• The decline from a net asset position of positive £1 in 2022 to negative £3,263 in 2024 shows ongoing financial deterioration.
• No overdue filings indicate compliance with statutory obligations, which is a positive sign.

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3. Diagnosis

The company is exhibiting symptoms of financial distress characterized by negative working capital and net assets. This suggests the business has been operating at a loss or consuming capital without replenishment. The “healthy cash flow” that sustains operations appears critically impaired, as evidenced by the drastic drop in current assets from £40,824 in previous years to just £1 in 2024. This could be due to cash burn, delayed receivables, or increased short-term liabilities.

The micro-entity status and small workforce imply limited operational scale, which may restrict the company’s ability to absorb shocks or invest in growth. The information technology consultancy sector demands continual investment in talent and technology, but the company’s balance sheet indicates constrained resources.

Despite these issues, the company remains active and compliant with filings, suggesting management is maintaining statutory discipline. However, the persistent negative equity is a warning sign that without intervention, the company risks insolvency or creditor action.

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4. Recommendations

• Immediate Cash Flow Management:
  Implement stringent cash flow monitoring and control measures. Prioritize collecting outstanding receivables and negotiate extended terms with suppliers to improve liquidity.

• Cost Control and Efficiency:
  Review operating expenses critically, especially overheads, to reduce burn rate. With only 2 employees, ensure roles are optimally aligned to revenue-generating activities.

• Capital Injection or Financing:
  Consider capital infusion from shareholders or external investors to restore positive net assets and strengthen working capital. Alternatively, explore short-term financing options with favourable terms to bridge liquidity gaps.

• Revenue Enhancement:
  Accelerate business development efforts to increase contracts and client base in the IT consultancy space. Diversify service offerings to improve income streams.

• Financial Monitoring:
  Establish monthly financial “vital signs” reporting for early detection of distress signals and proactive management.

• Professional Advice:
  Engage financial and legal advisors to evaluate restructuring options before the symptoms worsen. Early intervention can prevent progression to insolvency.

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