SPENCER COMMUNITY HUB LIMITED

Executive Summary

SPENCER COMMUNITY HUB LIMITED has experienced a rapid decline in financial health, losing all its fixed assets and net equity within one year, signaling serious financial distress despite active company status. Immediate attention is required to assess liquidity, operational viability, and strategic options to either revive or orderly wind down the business. Without intervention, the company risks insolvency or further deterioration.

SPENCER COMMUNITY HUB LIMITED - Analysis Report

Company Number: 14517601

Analysis Date: 2025-07-20 17:18 UTC

Financial Health Assessment for SPENCER COMMUNITY HUB LIMITED

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1. Financial Health Score: D

Explanation:
The company’s financial metrics indicate a concerning decline from a modestly healthy position in 2023 to a zero net asset base by the end of 2024, reflecting a sudden loss of all recorded assets and shareholder equity. This abrupt change suggests symptoms of financial distress or operational shutdown, meriting a low grade. While the company remains active legally, the absence of assets or net worth is a critical warning sign.

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2. Key Vital Signs

Vital Sign	2023 Value	2024 Value	Interpretation
Fixed Assets	£48,000	£0	Complete write-off or disposal of fixed assets
Net Assets	£48,000	£0	Loss of all equity and net worth
Shareholders’ Funds	£48,000	£0	Shareholder investment fully eroded
Average Number of Employees	0	0	No staff employed, indicating minimal activity
Cash (implied)	Not disclosed for 2024	0 or negligible	Possible depletion of liquidity

Interpretation:

• Fixed Assets: The disappearance of fixed assets from £48,000 to zero indicates the company may have sold or written off its tangible assets—a major red flag akin to a vital organ failing.
• Net Assets & Shareholders’ Funds: Zero net assets imply the company has no buffer or capital left, reflecting a balance sheet collapse.
• No Employees: The absence of employees suggests either inactivity or a very minimal operational footprint, limiting revenue generation.
• Liquidity: No explicit cash balance in 2024 is reported, which may indicate no liquid resources, signalling a risk of insolvency if obligations exist.

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3. Diagnosis

SPENCER COMMUNITY HUB LIMITED shows symptoms of financial distress despite being an active company. The total erosion of net assets and shareholders’ funds over one year indicates the company has either ceased operations, is in the process of winding down, or has encountered significant financial setbacks.

The lack of employees and the disappearance of fixed assets further support the diagnosis of near dormancy or shutdown of core business activities. While no overdue filings or liquidation status is recorded, the financial "vital signs" suggest the company’s operational and financial health is compromised.

This situation is analogous to a patient who was stable last year but has now lost significant function in critical organs (assets and equity), requiring urgent intervention or close monitoring.

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4. Recommendations

• Immediate Cash Flow Review: Confirm current liquidity position. If cash reserves are depleted, prioritize securing working capital or funding to sustain operations or orderly wind down.
• Asset Management: Investigate reasons behind fixed asset disappearance. If assets were sold, assess if proceeds were effectively utilized or lost.
• Operational Assessment: Evaluate business activity level and prospects. Consider whether to restart operations, restructure, or prepare for formal closure if no viable future exists.
• Governance & Control: The sole significant controller holds 50-75% shares and full voting rights. Engage this stakeholder in strategic decisions and transparency about financial condition.
• Professional Advice: Seek expert advice on insolvency options or restructuring to prevent hidden liabilities and protect stakeholder interests.
• Compliance Monitoring: Maintain up-to-date statutory filings to avoid penalties and loss of good standing.

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