SWIFTBIO CONSULTING LTD

Executive Summary

SWIFTBIO CONSULTING LTD is currently experiencing liquidity challenges and a significant decline in equity, indicative of financial stress despite asset growth. Immediate steps to strengthen working capital, manage costs, and formalise director funding are crucial to restore financial health and ensure sustainable operations.

SWIFTBIO CONSULTING LTD - Analysis Report

Company Number: 13624405

Analysis Date: 2025-07-29 18:35 UTC

Financial Health Assessment: SWIFTBIO CONSULTING LTD

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1. Financial Health Score: D

Explanation:
The company shows significant signs of financial strain, notably a shift from positive working capital in previous years to a negative position in the latest year. Net assets have fallen sharply, indicating dwindling equity. Although the company is still active and filing on time, the current financial metrics suggest distress symptoms that require urgent attention.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	10,115	4,850	Healthy growth in fixed assets, showing investment in long-term resources.
Current Assets	122,127	73,203	Strong increase, indicating more liquid resources available.
Current Liabilities	132,504	64,431	Nearly doubled, indicating growing short-term debts or obligations.
Net Current Assets (Working Capital)	-9,736	8,772	Shift from positive to negative working capital, a warning sign of liquidity stress.
Net Assets (Equity)	379	13,622	Drastic drop in equity, signaling erosion of shareholder value.
Directors’ Loans (Unsecured)	47,771	N/A	Significant director advances, interest-free and repayable on demand, indicating reliance on insider funding.

• Working Capital: The negative net current assets indicate that current liabilities exceed current assets, akin to a patient whose vital signs have worsened—short-term obligations may not be fully covered by liquid assets.
• Equity Erosion: Net assets dropping from £13,622 to £379 is a major symptom of financial weakening, suggesting accumulated losses or depletion of reserves.
• Director Loans: The company relies on advances from a director, which while flexible, may indicate external funding challenges.

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3. Diagnosis

The financial "symptoms" of SWIFTBIO CONSULTING LTD reveal a company under liquidity stress despite asset growth. The sudden jump in current liabilities outpaces current assets, causing a negative working capital scenario. This can constrain the company’s ability to meet short-term obligations, risking operational disruptions.

The erosion of net assets to a minimal £379 signals a critical weakening of financial resilience. This "low blood pressure" in the balance sheet can lead to difficulties in securing external financing or sustaining growth efforts.

The director’s unsecured loan acts as a temporary "intravenous drip," sustaining the company’s operations but it is not a substitute for a healthy cash flow or profitability.

Overall, although the company remains active and compliant with filing deadlines, the financial indicators point to a fragile state that requires immediate action to prevent further deterioration.

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4. Recommendations

• Improve Liquidity Management: Implement stricter controls on payables and receivables to restore positive working capital. Consider negotiating extended payment terms with suppliers or accelerating collections.
• Evaluate Cost Structure: Review operating expenses to identify areas for cost reduction without compromising core activities, aiming to improve profitability and cash generation.
• Director Loan Formalisation: Consider formalising the director’s loan terms or converting part of it into equity to strengthen the balance sheet and reduce reliance on short-term unsecured funding.
• Seek External Financing: Explore options for external funding such as small business loans or equity investment to inject fresh capital and support growth initiatives.
• Regular Financial Monitoring: Establish monthly financial health checks focusing on liquidity ratios and cash flow forecasts to detect and address issues promptly.
• Strategic Business Review: Given the company’s involvement in research and experimental development, reassess project viability and funding prioritisation to focus resources on the most promising areas.

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