SILURES LIMITED

Executive Summary

Silures Limited is currently facing severe financial distress indicated by negative net assets and critical liquidity shortages. Immediate actions such as capital injection, debt restructuring, and cost control are essential to stabilize the company’s financial health and restore operational viability. Without swift intervention, the company risks insolvency.

SILURES LIMITED - Analysis Report

Company Number: 12502589

Analysis Date: 2025-07-29 16:26 UTC

Financial Health Assessment of Silures Limited

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1. Financial Health Score: D (Poor)

Explanation: Silures Limited is exhibiting significant financial distress indicated by negative net assets and working capital. The company's liabilities substantially exceed its current assets, revealing a troubled liquidity position and an unsustainable balance sheet structure. The "D" grade reflects a critical need for financial restructuring or improvement to avoid insolvency risks.

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2. Key Vital Signs

Metric	Latest Value (31-Oct-2023)	Interpretation
Current Assets	£30,690	Very low current assets with minimal cash reserves (£690).
Current Liabilities	£176,320	High short-term obligations, more than 5 times current assets.
Net Current Assets	-£145,630	Negative working capital indicates cash flow strain and liquidity risk.
Net Assets (Equity)	-£145,630	Negative net worth reflects that liabilities exceed total assets.
Share Capital	£100	Minimal equity base to absorb losses.
Cash on Hand	£690	Extremely low cash buffer, insufficient for operational needs.
Debtors	£0	No receivables to support cash inflows.
Trade Creditors	£46,172	Significant trade payables adding pressure on short-term cash flow.
Amounts Owed to Group	£63,933	Related party loans represent a major part of liabilities.
Tax and Social Security	£60,724	Large tax liabilities may indicate unpaid obligations, possible penalties.
Employee Count (Average)	41	Relatively high staff level for a company with poor financial health, implying high fixed costs.

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3. Symptoms Analysis

• Liquidity Crisis: The company’s current liabilities far exceed its current assets, resulting in a severe liquidity crunch. The very low cash reserves (£690) are inadequate to meet immediate obligations, a classic symptom of “cash flow starvation.”
• Balance Sheet Weakness: Negative net assets of -£145,630 signal that the company’s liabilities outweigh its assets by a significant margin. This “balance sheet anemia” is a severe warning of insolvency risk.
• Rising Debt Burden: Compared to the prior year, current liabilities have more than doubled (£83,638 to £176,320), with a marked increase in amounts owed to related parties and tax liabilities. This suggests the company is relying heavily on external and related party financing just to cover operational gaps.
• Asset Depletion: Fixed tangible assets have been fully disposed of, removing a potential source of liquidity or collateral. Stocks have increased but may not be readily convertible to cash.
• Operational Costs vs. Revenue: Although turnover data is not provided, the high average employee count (41) combined with rising liabilities suggests operational expenses may be outpacing revenues, another symptom of financial distress.
• Management Changes: Recent director turnover in April 2023 might reflect attempts to address company issues but also introduces potential instability.

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4. Diagnosis

Silures Limited is currently in a precarious financial state characterized by poor liquidity, negative equity, and growing debts. The company’s “financial vitals” reveal symptoms consistent with distress, including negative working capital and reliance on related party loans. Without intervention, the company faces serious risks of insolvency or forced restructuring. The liquidity crisis is the most urgent problem needing resolution to maintain ongoing operations.

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5. Prognosis

If the current trend continues, Silures Limited’s financial health will likely deteriorate further. The company risks insolvency due to inability to meet short-term liabilities, especially tax and trade debts. However, prognosis can improve with decisive management actions such as capital injection, cost reduction, debt renegotiation, or operational restructuring. Without such measures, the company may face administration or liquidation.

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6. Recommendations

• Immediate Cash Flow Management: Prioritize improving cash flow by accelerating receivables (if any), negotiating extended payment terms with creditors, and reviewing stock levels for liquidation.
• Capital Injection: Seek equity funding either from existing shareholders or new investors to strengthen the balance sheet and provide working capital.
• Debt Restructuring: Engage with related parties and other creditors to restructure or delay repayments, particularly the significant related party loans and tax liabilities.
• Cost Control: Evaluate staffing and overhead costs to align expenses with realistic revenue expectations. Consider temporary cost-saving measures or layoffs if necessary.
• Operational Review: Conduct a thorough review of the business model and market position to identify revenue growth opportunities or necessary strategic pivots.
• Professional Guidance: Consult insolvency practitioners or financial advisors early to explore formal restructuring options before the situation worsens.
• Governance Stability: Stabilize management team and improve reporting and financial controls to monitor health indicators regularly.

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Medical Analogy Summary

Silures Limited is exhibiting clear “symptoms of financial distress” with dangerously low liquidity and a “weakened balance sheet immune system.” The company is in a critical state akin to a patient suffering from severe anemia and dehydration—immediate intervention is required to restore vitality and avoid collapse. The prognosis depends heavily on prompt and effective treatment.

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