T GEORGE LTD

Executive Summary

T GEORGE LTD has experienced a severe decline in financial health with negative working capital and net assets at the latest year-end, signaling liquidity and solvency distress. Immediate focused actions on cash flow management and liability restructuring are essential to prevent further deterioration and support recovery. The company’s financial condition requires urgent attention to restore stability and ensure long-term viability.

T GEORGE LTD - Analysis Report

Company Number: 13331173

Analysis Date: 2025-07-20 16:37 UTC

Financial Health Assessment for T GEORGE LTD (as at 30 April 2024)

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1. Financial Health Score: D

Explanation:
The company shows a significant deterioration in its financial position in the latest year. From a previously positive net asset and working capital position, it has swung to a substantial net liabilities position with negative net current assets. This suggests symptoms of financial distress that require urgent attention.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	685	901	Small and declining; minimal long-term investments.
Current Assets	516	2,991	Sharp drop in liquid/short-term assets; a worrying sign.
Current Liabilities	12,519	1,501	Substantial increase in short-term debts; red flag.
Net Current Assets (Working Capital)	-12,003	1,490	Shift from healthy positive to deeply negative working capital, indicating liquidity stress.
Total Net Assets (Equity)	-11,318	2,391	Negative equity reflects accumulated losses or liabilities exceeding assets.
Average Employees	1	1	Stable headcount; likely a micro entity with minimal staff.

Interpretation:

• The most critical vital sign is the sharp increase in current liabilities accompanied by a collapse in current assets, leading to a large negative working capital.
• Negative net assets indicate the company’s obligations exceed its resources, a key symptom of financial distress.
• Fixed assets are minimal and declining, indicating limited investment or asset disposal.
• Overall, this points to cash flow problems and potential solvency concerns.

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3. Diagnosis

T GEORGE LTD is exhibiting symptoms of financial distress, with a liquidity crunch as shown by negative working capital of £12,003 and net liabilities of £11,318 at year-end 2024. This is a significant decline from the prior year when the company was in a stable and solvent position.

The sudden increase in current liabilities (from £1,501 to £12,519) suggests either increased short-term borrowing, unpaid trade creditors, or accrued expenses. Meanwhile, current assets have diminished sharply, indicating difficulty in converting assets into cash or possibly write-downs.

Given the company is a micro-entity with just one employee (likely the director), the business may be facing operational challenges or reduced turnover impacting cash inflows. If this condition persists, the company risks insolvency.

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4. Prognosis

Without corrective action, the prognosis is guarded to poor. The company’s financial "vital signs" indicate distress that could worsen, potentially leading to insolvency or the need for restructuring. However, as a small business, targeted interventions could restore stability if cash inflows improve or liabilities are managed down.

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5. Recommendations

• Urgent Cash Flow Management:
  Conduct detailed cash flow forecasting to identify short-term liquidity gaps and prioritize payments to critical suppliers or creditors.

• Review and Restructure Liabilities:
  Negotiate extended payment terms or refinancing of current liabilities to reduce immediate pressure.

• Increase Current Assets:
  Improve collections of any receivables or convert non-essential assets into cash.

• Cost Control:
  Minimise overheads and discretionary spending to preserve cash.

• Business Operations Review:
  Assess operational efficiency and explore ways to increase revenue, such as new contracts or diversifying services.

• Seek Professional Advice:
  Engage with an insolvency or restructuring advisor promptly to explore formal or informal rescue options if necessary.

• Maintain Compliance:
  Continue timely filing of accounts and returns to avoid regulatory penalties that could exacerbate financial strain.

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Medical Analogy Summary

T GEORGE LTD’s financial “pulse” has weakened significantly over the last year, with “symptoms” such as negative working capital and net liabilities indicating a state of “financial illness.” Without intervention, the company risks “organ failure” (insolvency). However, with prompt and targeted “treatment” (cash flow management, cost reduction, and liability restructuring), recovery is possible.

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