THE FEED CO-OPERATIVE LIMITED

Executive Summary

THE FEED CO-OPERATIVE LIMITED shows clear signs of financial distress, with negative working capital and equity pointing to liquidity and solvency challenges. Immediate actions to improve cash flow, restructure liabilities, and enhance profitability are essential to stabilize the company’s financial health and avoid potential insolvency.

THE FEED CO-OPERATIVE LIMITED - Analysis Report

Company Number: 14281314

Analysis Date: 2025-07-29 21:05 UTC

Financial Health Assessment for THE FEED CO-OPERATIVE LIMITED

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1. Financial Health Score: D

Explanation:
The company is showing signs of financial distress with negative net current assets and shareholders' funds, indicating liabilities exceed assets. While it remains active and meets filing deadlines, the balance sheet reveals persistent working capital deficits and accumulated losses, which are concerning. The company is not yet insolvent but is in a fragile state requiring prompt attention.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Cash	4,216	4,550	Low cash reserves, slightly decreasing
Current Liabilities	15,534	12,685	Increasing short-term debts
Net Current Assets	-11,318	-8,135	Negative working capital, "symptom of liquidity strain"
Total Assets Less Current Liabilities	-10,076	-6,547	Company owes more than it owns
Shareholders' Funds	-10,077	-6,548	Negative equity, indicating accumulated losses

• Cash Level: The cash on hand is very limited (£4.2k), which restricts operational flexibility and is a "weak pulse" for day-to-day business health.
• Working Capital Deficit: The net current assets are deeply negative, meaning the company cannot cover its short-term debts with current assets. This is a "warning symptom" of liquidity problems.
• Negative Equity: Shareholders' funds are in negative territory, reflecting accumulated losses or possibly initial undercapitalization. This represents "chronic financial illness" that undermines long-term viability.

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3. Diagnosis

THE FEED CO-OPERATIVE LIMITED is currently in a precarious financial position. The consistent negative working capital and shareholders' deficit indicate the company is operating with more liabilities than assets, a classic "symptom of financial distress." The small amount of cash available is insufficient for comfortable liquidity, limiting the company’s ability to respond to unexpected expenses or invest in growth.

The lack of employees suggests a lean operation but also potentially limited revenue generation capacity. The company is in the event catering sector, which can be seasonal and competitive, potentially impacting cash flow stability.

The deterioration in net assets from 2023 to 2024 signals ongoing losses or insufficient capital injections. Without a sustainable turnaround, the company risks insolvency or may face difficulty in securing external financing.

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4. Recommendations

• Improve Cash Flow Management: Focus on accelerating receivables, negotiating better payment terms with suppliers, and controlling discretionary spending. Think of this as "improving the blood flow" of the business.
• Capital Injection or Debt Restructuring: Consider equity financing or restructuring existing liabilities to reduce short-term pressure. This is akin to "administering a financial transfusion" to stabilize the company.
• Review Business Model and Costs: Assess the pricing strategy, cost base, and operational efficiency to restore profitability. This diagnostic step could identify "underlying infections" draining resources.
• Seek Professional Advice: Engage with financial advisors or insolvency practitioners early to explore options before the condition worsens.
• Regular Monitoring: Implement a robust financial monitoring system to detect early warning signs and prevent recurrence of financial distress.

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