Company Number: 14367250

Analysis Date: 2025-07-29 13:53 UTC

Financial Health Assessment for SPACEPM LIMITED

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1. Financial Health Score: D

Explanation:
SPACEPM LIMITED exhibits significant financial distress, indicated by persistent and deepening negative net assets and net current assets over the last two years. The company's working capital is severely negative, signaling liquidity challenges and potential solvency risks. The financial position warrants caution, reflected in a grade of D, suggesting urgent remedial action is needed to restore financial health.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	981	36	Slight improvement but still very low; cash or liquid assets scarce
Current Liabilities	33,256	15,180	Significant increase in short-term debts or payables
Net Current Assets (Working Capital)	-32,275	-15,144	Negative and worsening; symptoms of liquidity strain
Net Assets (Shareholders’ Funds)	-32,275	-15,144	Negative equity; company owes more than it owns
Number of Employees	1	1	Micro entity with minimal staff

Interpretation of Vital Signs:

• Negative Working Capital: The company is facing a "cash flow blockage," unable to cover short-term obligations with short-term assets, a classic symptom of financial distress.
• Growing Current Liabilities: The increase in liabilities without corresponding asset growth suggests reliance on creditors and possible accumulation of unpaid debts.
• Negative Net Assets: This is a "red flag" akin to a patient having a critical deficit in vital nutrients — the company's liabilities outweigh its assets, risking insolvency.
• Minimal Assets: The company holds negligible current assets, indicating thin liquidity buffers and limited operational flexibility.

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3. Diagnosis

SPACEPM LIMITED is in a precarious financial condition, showing clear symptoms of distress:

• The company has recorded consistent negative net assets since inception, worsening in the latest year.
• The jump in current liabilities from £15,180 to £33,256 within one year, without a proportional increase in current assets, signals growing financial pressure and potential inability to meet creditor demands.
• The micro entity status and minimal employee count suggest limited operational scale and resources to counteract financial challenges.
• The sole significant controller holds 75-100% shares and voting rights, which may enable quicker strategic decisions but also concentrates risk.
• Absence of P&L data limits insight into profitability or cash flow trends; however, the balance sheet alone points to ongoing losses or capital erosion.

In medical terms, this company is experiencing a "chronic condition" of financial imbalance, with "symptoms" of liquidity shortage and negative equity that require immediate intervention to prevent "collapse" (insolvency).

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4. Recommendations

To improve SPACEPM LIMITED’s financial wellness, the following actions are advised:

• Capital Injection: The primary treatment is an infusion of new equity or shareholder loans to restore positive net assets and improve liquidity — akin to providing vital nutrients to a malnourished patient.
• Debt Restructuring: Engage creditors to negotiate extended payment terms or reductions to relieve immediate liquidity pressures.
• Cash Flow Management: Implement stringent controls on cash outflows; prioritize payments essential to operations.
• Operational Review: Assess business model viability and explore cost reduction or revenue enhancement strategies to halt capital erosion.
• Financial Monitoring: Establish regular financial health check-ups with detailed cash flow forecasts and working capital monitoring.
• Director Oversight: Given the control concentration, ensure governance mechanisms support prudent financial decisions and compliance with statutory duties to avoid wrongful trading risks.
• Seek Professional Advice: Consider consulting insolvency practitioners or financial advisors to explore turnaround options before distress worsens.

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