SWINTONIA LIMITED

Executive Summary

SWINTONIA LIMITED is currently facing serious financial distress evidenced by negative shareholders’ funds and increasing liabilities, placing it at risk of insolvency. Immediate action is required to inject capital and improve liquidity to stabilize the company’s financial health. Without intervention, the company’s outlook remains uncertain and precarious.

SWINTONIA LIMITED - Analysis Report

Company Number: SC699836

Analysis Date: 2025-07-29 18:48 UTC

Financial Health Assessment of SWINTONIA LIMITED

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1. Financial Health Score: D

Explanation:
SWINTONIA LIMITED shows persistent negative shareholders' funds and increasing current liabilities without corresponding current assets disclosed, indicating a state of financial distress. The company is technically insolvent on a net asset basis, which is a serious symptom and warrants urgent attention. The score "D" reflects significant financial strain and risk.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Current Liabilities	119,291	High and increasing, indicating rising short-term obligations.
Net Current Assets	Not explicitly stated; implied negative	Negative net working capital, meaning liabilities exceed current assets.
Shareholders’ Funds	(119,291)	Negative equity position, indicating insolvency.
Employees	4	Small workforce consistent with micro company status.
Share Capital	1.00	Minimal share capital, indicating limited initial funding.

Interpretation:

• Negative Shareholders’ Funds: This is akin to a patient with a dangerously low blood count—indicating the company owes more than it owns. It limits the company’s ability to absorb shocks or invest in growth.
• Rising Current Liabilities: Like increasing symptoms of distress, this suggests growing short-term debts that may be hard to meet.
• Negative Net Working Capital: A symptom of poor liquidity health, meaning the company may struggle to pay immediate bills.
• Micro Account Category: Filing under micro rules implies limited financial complexity but also less transparency.

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3. Diagnosis

SWINTONIA LIMITED is experiencing symptoms of financial distress:

• Insolvency: Negative shareholders’ funds show the company’s liabilities exceed its assets. This is a critical health warning.
• Liquidity Strain: Increasing current liabilities and negative net current assets indicate difficulty in meeting short-term obligations, risking operational disruption.
• Lack of Profit & Loss Disclosure: The absence of profit and loss account details limits insight into operational performance, but the balance sheet alone reveals poor capital structure.
• Minimal Capital Base: £1 share capital provides negligible cushion against losses.

These symptoms suggest the company is in a fragile financial state. Without intervention, the risk of insolvency or forced restructuring (e.g., administration or liquidation) increases.

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4. Recommendations

To restore financial wellness, SWINTONIA LIMITED should consider the following actions:

• Capital Injection: Secure additional equity or shareholder loans to improve net assets and reduce insolvency risk.
• Cost Management: Review operating expenses and overheads to reduce negative cash flow pressures.
• Liquidity Improvement: Negotiate extended payment terms with creditors or arrange short-term financing facilities.
• Financial Transparency: Prepare and disclose full profit and loss accounts to better diagnose operational issues and investor confidence.
• Strategic Review: Evaluate business model viability and explore revenue growth strategies.
• Professional Advice: Engage insolvency practitioners or financial advisors early to explore restructuring options if cash flow issues persist.

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