SKILLS GLOBAL LIMITED

Executive Summary

SKILLS GLOBAL LIMITED is currently experiencing financial distress characterized by negative equity, minimal cash reserves, and reliance on director loans. While the company remains compliant and active, urgent actions to improve liquidity and strengthen the balance sheet are essential to avoid further deterioration. With strategic management and potential capital infusion, the company can stabilize its financial health and build a sustainable future.

SKILLS GLOBAL LIMITED - Analysis Report

Company Number: 13680648

Analysis Date: 2025-07-29 16:05 UTC

Financial Health Assessment Report for SKILLS GLOBAL LIMITED

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1. Financial Health Score: D

Explanation:
SKILLS GLOBAL LIMITED shows several concerning signs in its financial metrics, including persistent negative net assets and shareholders' funds, indicating a state akin to financial "anemia." While the company remains active and compliant with filing deadlines, the negative equity and reliance on director loans reveal symptoms of financial distress that require prompt attention to avoid further deterioration.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Current Assets	9,330	Modest short-term resources available
Cash at Bank	830	Very low cash reserves; poor liquidity position
Debtors (Receivables)	8,500	Large receivables; potential liquidity risk if unpaid
Current Liabilities	10,400	Slightly higher than current assets; working capital is negative
Net Current Assets	(1,070)	Negative working capital indicates cash flow strain
Loans from Directors	9,900	Reliance on director loans to finance operations; potential risk if withdrawn
Net Assets / Shareholders’ Funds	(1,070)	Negative equity indicates liabilities exceed assets—a critical warning sign
Employees	0	No employees; possibly minimal operational activity
Filing Status	Up to date	No overdue filings — a positive compliance sign

Interpretation:

• The company’s negative net assets and negative shareholders’ funds are like a patient with deficient vital signs—indicating the company’s liabilities outweigh its assets, a serious financial imbalance.
• Low cash on hand (£830) and high debtors (£8,500) suggest liquidity is compromised; converting receivables to cash is urgent to ease cash flow strain.
• The negative net current assets (-£1,070) indicates the company may struggle to meet short-term obligations without additional financing or improved cash flow.
• The prominence of director loans (£9,900) as a creditor reflects reliance on related-party funding, which can be unsustainable if not managed carefully.

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3. Diagnosis

SKILLS GLOBAL LIMITED is currently in a financially fragile condition. The company shows classic symptoms of undercapitalization and liquidity stress:

• Negative equity: The company’s liabilities exceed its assets, akin to a patient with critical organ failure. This undermines the company's ability to raise external finance and could impair creditor confidence.
• Liquidity constraints: The minimal cash reserves and high receivables indicate a risk of cash flow shortfalls, which if not addressed, could lead to payment delays or insolvency risks.
• Dependence on director loans: While director loans provide short-term relief, long-term financial health depends on generating operational profits or attracting external investment.
• No employees and small asset base: These suggest limited operational scale or possibly a holding or dormant structure with limited trading activities.

The company is not in immediate liquidation or administration, but the financial "symptoms" present clear warning signs that proactive measures are needed.

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4. Recommendations

To improve the financial wellness of SKILLS GLOBAL LIMITED, consider the following actions:

1. Improve cash flow management:

   • Accelerate collection of outstanding debtors to boost cash reserves.
   • Review payment terms with suppliers and creditors to better align outflows with inflows.

2. Address negative equity:

   • Explore equity injection from existing or new shareholders to strengthen the balance sheet.
   • Consider converting director loans into equity if appropriate, to reduce liabilities.

3. Operational review:

   • Assess current business activities to identify revenue growth opportunities or cost reductions.
   • If the company is dormant or minimally active, consider whether continuing operations is viable or if restructuring is needed.

4. Regular financial monitoring:

   • Establish monthly financial reviews focusing on liquidity and solvency metrics to detect early warning signs.
   • Engage professional advice for financial restructuring if necessary.

5. Maintain compliance:

   • Continue timely filing of accounts and confirmation statements to avoid penalties and maintain corporate standing.

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