SIXTY-TEN ARTS MANAGEMENT CONSULTING LIMITED

Executive Summary

Sixty-Ten Arts Management Consulting Limited is operational but exhibits financial distress evidenced by negative net assets and significant long-term liabilities. Immediate actions to strengthen capital and improve liquidity are essential to avoid worsening financial health. With focused management and potential capital injection, the company can stabilize and pursue growth in its niche of performing arts support.

SIXTY-TEN ARTS MANAGEMENT CONSULTING LIMITED - Analysis Report

Company Number: 13787700

Analysis Date: 2025-07-20 17:26 UTC

Financial Health Assessment: SIXTY-TEN ARTS MANAGEMENT CONSULTING LIMITED

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1. Financial Health Score: D

Explanation:
The company exhibits some concerning financial symptoms despite being operational and compliant with filing deadlines. The negative net assets (shareholders’ funds) and long-term creditor liabilities outweigh current assets, indicating an unhealthy financial position. The grade D reflects a business showing symptoms of financial distress that require active management to avoid worsening conditions.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Current Assets	1,505	Cash and short-term assets are very low, limiting operational flexibility.
Current Liabilities	150	Short-term debts are minimal, which is positive.
Net Current Assets (Working Capital)	1,355	Positive but very small, indicating limited buffer for day-to-day operations.
Creditors due after one year	6,627	Long-term liabilities are significant relative to assets—stress symptom indicating potential solvency risk.
Net Assets (Shareholders’ Funds)	-5,272	Negative equity signals the company’s liabilities exceed its assets, a critical symptom of distress.
Average Employees	1	Very small scale operation, typical for a micro-entity but limits revenue-generating capacity.

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3. Diagnosis

The company is showing symptoms of financial strain primarily due to a negative net asset position and long-term liabilities that substantially exceed current assets. While short-term obligations are minimal and manageable, the long-term creditors amount to £6,627, which the company is currently unable to cover with its asset base. This creates a warning sign akin to “organ dysfunction” in financial health—a state where the business’s capital structure is unsustainable without intervention.

The positive but minimal working capital is a mild “pulse” indicating the company can still meet immediate obligations, but the negative shareholders’ funds suggest ongoing losses or accumulated deficits. Given the company’s very recent incorporation (Dec 2021) and micro-entity status, it may be in an early growth phase, but the current financial “vital signs” indicate it is not yet financially stable.

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4. Recommendations

a. Strengthen Capital Structure:

• Inject equity or seek shareholder loans to improve net assets and reduce reliance on creditor financing. This is like replenishing the body’s vital fluids to restore balance.
• Review long-term creditor agreements to negotiate more favourable terms or repayments schedules.

b. Improve Cash Flow Management:

• Optimize billing and collections to boost current assets (cash).
• Control operational expenses tightly to prevent further depletion of reserves.

c. Develop a Financial Recovery Plan:

• Prepare a detailed cash flow forecast and budget to monitor liquidity closely.
• Explore new revenue streams or expand client base in arts management consulting to increase income.

d. Monitor Financial Health Regularly:

• Conduct quarterly financial reviews to detect worsening symptoms early.
• Engage with a financial advisor or accountant to ensure compliance and strategic financial planning.

e. Consider Strategic Partnerships or Funding:

• Given the micro-entity nature and limited resources, exploring grants, partnerships, or investor funding could provide a lifeline.

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Summary:
SIXTY-TEN ARTS MANAGEMENT CONSULTING LIMITED currently shows financial distress symptoms mainly due to negative net assets and significant long-term liabilities. While operational at a micro scale, the company requires urgent capital restructuring and cash flow management to restore financial health and ensure sustainability.

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