STARTUP2EXIT LTD

Executive Summary

STARTUP2EXIT LTD currently faces financial stress marked by negative working capital and net assets, signaling liquidity and solvency challenges. While there are minor signs of recovery, immediate actions to improve cash flow, increase capital, and control costs are essential to restore financial health and ensure long-term viability.

STARTUP2EXIT LTD - Analysis Report

Company Number: 12644873

Analysis Date: 2025-07-20 18:16 UTC

Financial Health Assessment for STARTUP2EXIT LTD

---

1. Financial Health Score: D

Explanation:
The company shows ongoing challenges maintaining positive working capital and net assets, indicating financial strain. While there is some recovery in 2024 compared to 2023, the persistent negative net current assets and net liabilities reflect symptoms of financial distress. The micro-entity status and low asset base limit resilience. Overall, this grade reflects a fragile financial condition requiring attention to strengthen liquidity and solvency.

---

2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	603	Very low cash and receivables—tight liquidity.
Current Liabilities	2,580	Short-term debts exceed current assets significantly.
Net Current Assets	-1,977	Negative working capital—potential cash flow issues.
Net Assets (Equity)	-1,977	Negative net worth—company owes more than it owns.
Share Capital	100	Minimal invested capital—limited financial buffer.
Employee Count	0	No employees—likely a service or consultancy model.

Interpretation:
The company's "vital signs" reveal a fragile financial pulse. Negative net current assets indicate the company may struggle to meet short-term obligations, suggesting a lack of healthy cash flow. Negative net assets (shareholders' funds) imply accumulated losses and potential insolvency risks if not addressed. The minimal share capital and absence of employees suggest a lean operation but limited financial cushioning.

---

3. Diagnosis

STARTUP2EXIT LTD exhibits symptoms of financial distress:

• Cash flow tightness: Negative working capital signals possible difficulties in covering immediate liabilities, risking supplier or creditor pressure.
• Balance sheet weakness: Persistent negative net assets show accumulated deficits, reducing stakeholder confidence and limiting access to external funding.
• Operational scale: Zero employees and micro-entity status suggest a very small-scale consultancy likely reliant on a few contracts or directors’ efforts.
• Signs of recovery: Slight improvement in net current assets from 2023 to 2024 (+£230) hints at early positive changes, but still far from healthy.

Overall, these symptoms highlight a company on a delicate financial footing with limited buffer to absorb shocks. Without corrective action, the risk of insolvency or forced restructuring remains high.

---

4. Recommendations

To revive financial wellness and strengthen the company's health, consider the following steps:

• Improve liquidity: Accelerate debtor collections, negotiate extended payment terms with creditors, or inject short-term finance to alleviate working capital deficits.
• Increase capital: Consider shareholder capital injections or loans from directors to bolster net assets and provide a financial cushion.
• Cost control: Maintain the lean operational model by keeping employee and overhead costs minimal to preserve cash flow.
• Revenue growth: Focus on winning new consultancy contracts or expanding services to increase turnover and profitability.
• Financial monitoring: Implement regular cash flow forecasting and monthly financial reviews to detect early signs of distress and manage cash proactively.
• Strategic planning: Evaluate the business model’s sustainability and explore partnerships or mergers if organic growth is constrained.

Taking these steps will help restore a healthy financial pulse and reduce the risk of liquidity crises or insolvency.

---