THE TECH SUCCESS STUDIO LTD

Executive Summary

THE TECH SUCCESS STUDIO LTD is currently experiencing significant financial distress, characterized by negative net assets and severely limited liquidity. The company’s financial health score is D, reflecting vulnerability but potential for recovery with strategic intervention. Immediate focus on improving cash flow, recapitalization, and operational efficiency is critical to restore financial stability and support sustainable growth.

THE TECH SUCCESS STUDIO LTD - Analysis Report

Company Number: 13779420

Analysis Date: 2025-07-20 18:55 UTC

Financial Health Assessment Report
Company: THE TECH SUCCESS STUDIO LTD
Date of Assessment: 2024-09

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1. Financial Health Score: Grade D

Explanation:
The company exhibits significant financial distress signs, notably persistent net liabilities and negative working capital. While still active and filing on time, the financial "vital signs" point to structural weaknesses that require urgent attention. Grade D reflects financial vulnerability, indicating the company is not presently healthy but has potential for recovery if corrective actions are implemented.

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2. Key Vital Signs

Metric	2023 (£)	Interpretation
Fixed Assets	941	Minimal long-term assets; relatively stable but very low investment in physical or intangible assets.
Current Assets	45	Severely low short-term assets (cash or receivables), indicating very limited liquidity.
Current Liabilities	12,005	High short-term debts due within one year, exceeding current assets dramatically.
Net Current Assets	-11,960	Negative working capital indicating inability to meet short-term obligations with short-term assets.
Total Assets Less Current Liabilities	-11,019	Overall negative net assets; company owes more than it owns.
Net Assets / Shareholders' Funds	-11,019	Shareholders' equity is negative, indicating accumulated losses exceed invested capital.
Average Number of Employees	0	No employees recorded, possibly indicating minimal operations or reliance on external contractors.

Additional Observations:

• The company has been operating since December 2021 and has undergone multiple name changes within a short period, which may signify strategic repositioning or instability in business identity.
• The sole director and 100% owner is Mrs. Jacqueline Irene Slade, suggesting centralized control but also concentration risk.
• No audit was required due to micro-entity status, and profit & loss details are not publicly available, limiting visibility into profitability and cash flow from operations.

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3. Diagnosis: Financial Health Overview

The company exhibits "symptoms of financial distress" akin to a patient with a weakened cardiovascular system struggling to maintain circulation:

• Liquidity Crisis: The company’s current assets are virtually negligible (£45) against liabilities of £12,005, indicating a critical cash flow issue—akin to a heart struggling to pump blood efficiently. This negative working capital suggests the company may face difficulties paying immediate debts, risking supplier or creditor confidence.
• Capital Erosion: Negative net assets (-£11,019) reflect accumulated losses eroding shareholder equity. This is equivalent to a patient’s vital organ function deteriorating over time. It limits the company’s ability to raise funds or absorb financial shocks.
• Stagnant Asset Base: Fixed assets have decreased slightly from £1,411 to £941, indicating no fresh investment or upgrading of long-term assets, suggesting limited growth or reinvestment capacity.
• Operational Scale: No employees recorded, suggesting very small or dormant operational activity. This could mean the company is not generating significant revenue or is at an early developmental stage with minimal overheads.
• Name Changes: Multiple recent name changes might be a sign of strategic uncertainty or attempts at rebranding to stimulate business growth or reposition in the market.

Overall, the company is in a fragile financial state, with "warning signs" similar to early-stage chronic illness that requires intervention to avoid further deterioration.

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4. Recommendations: Steps to Improve Financial Wellness

1. Improve Liquidity and Cash Flow Management:

   • Urgently address working capital deficits by negotiating extended payment terms with creditors and accelerating collections from debtors (if any).
   • Consider short-term financing options to bridge liquidity gaps, such as overdrafts or invoice financing, but cautiously to avoid overleveraging.

2. Increase Capital or Equity Injection:

   • The negative net asset position requires recapitalization. The owner or new investors should consider injecting fresh equity to stabilize the balance sheet, akin to providing a vital transfusion.
   • Alternatively, explore grants or government support schemes for tech startups or micro-enterprises.

3. Operational Review and Revenue Generation:

   • Develop clear revenue streams to increase current assets and reduce losses. This may involve refining the business model, focusing on profitable service lines, or targeting new market opportunities.
   • Evaluate the necessity of the multiple name changes and stabilize the brand identity to build customer trust.

4. Cost Control and Efficiency:

   • Keep overheads minimal given current financial constraints, and outsource non-core activities to maintain flexibility.
   • Implement tight budget controls to avoid exacerbating losses.

5. Financial Monitoring and Reporting:

   • Even though not required, consider preparing internal profit & loss statements to monitor business performance regularly.
   • Seek professional advice to establish robust financial controls and forecasting models.

6. Strategic Planning:

   • Develop a turnaround plan with clear milestones and contingencies.
   • Engage stakeholders transparently about financial challenges and recovery plans.

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