SHILOH CIEL CO LTD

Executive Summary

SHILOH CIEL CO LTD, a newly incorporated micro-entity in real estate, exhibits early financial distress marked by negative working capital and equity. Despite strong fixed assets, the company faces liquidity challenges and undercapitalization, requiring urgent funding and cash flow management. Prompt strategic and financial interventions are essential to restore stability and support growth.

SHILOH CIEL CO LTD - Analysis Report

Company Number: 15112531

Analysis Date: 2025-07-20 14:11 UTC

Financial Health Assessment of SHILOH CIEL CO LTD

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1. Financial Health Score: D

Explanation:
The company shows clear signs of financial distress at this early stage of its operation. The negative net current assets and net liabilities indicate an unhealthy liquidity position and undercapitalization. Given it is a newly incorporated micro-entity, these symptoms suggest early-stage challenges that require urgent attention.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,510,547	Significant investment in long-term assets, likely property. This is a key strength (the "solid bone structure").
Current Assets	334,475	Limited liquid resources and short-term receivables ("circulating blood").
Current Liabilities	1,901,603	High short-term obligations ("pressing debts").
Net Current Assets (Working Capital)	-1,567,128	Negative, indicating insufficient short-term resources to cover liabilities—"symptom of liquidity distress."
Total Assets Less Current Liabilities	-56,581	Negative, showing overall asset base is insufficient to cover immediate debts.
Net Assets / Shareholders’ Funds	-56,581	Negative equity; the company owes more than it owns ("undercapitalized").

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3. Diagnosis

• Liquidity Crisis: The company has a severe liquidity problem, with current liabilities vastly exceeding current assets. This means it may struggle to meet short-term obligations, such as supplier payments or operating expenses, without additional funding or asset liquidation.

• Negative Equity: The net liabilities position shows the company is technically insolvent on a balance sheet basis. This reflects either losses incurred, initial underfunding, or significant creditor claims.

• Asset Base: The substantial fixed asset figure suggests the company may hold real estate or other long-term investments. This is a positive sign of underlying value but these assets are not readily convertible to cash to cover immediate debts.

• New and Small: The company was incorporated in September 2023 and has no employees other than the director. This early stage and micro-entity status mean it may still be in capital formation or asset acquisition phase, possibly explaining the initial imbalance.

• Risk Factors: The symptoms indicate financial strain that could worsen without intervention. The company should be careful to avoid insolvency risks and creditor pressure.

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4. Recommendations

1. Improve Liquidity:

   • Consider securing short-term financing or a credit facility to cover immediate liabilities.
   • Negotiate with creditors for extended payment terms to ease cash flow pressure.

2. Capital Injection:

   • The negative equity signals a need for additional equity funding from the owner or investors to strengthen the balance sheet.

3. Asset Utilization:

   • Review the fixed asset portfolio for opportunities to generate income or liquidate non-essential assets to improve cash position.

4. Cash Flow Management:

   • Implement strict cash flow monitoring and forecasting to proactively manage the "circulating blood" of the business.
   • Delay non-essential expenditures and prioritize payments critical to operations.

5. Business Plan Review:

   • Reassess the business model and strategy, especially since it operates in real estate buying and selling, which can be capital intensive.
   • Explore partnerships or joint ventures to share financial risk.

6. Seek Professional Advice:

   • Engage with financial advisors or insolvency practitioners early to navigate distress symptoms before they escalate.

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Medical Analogy Summary:
SHILOH CIEL CO LTD currently shows "symptoms of financial distress," primarily liquidity shortage and negative equity, akin to a patient with low blood pressure and weakened heart function. The significant fixed assets are the structural "bones," but without healthy cash flow, the company risks "collapse." Immediate "treatment" through capital infusion and liquidity management is critical to stabilize and improve financial health.

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