THEBES CLOUD MANAGEMENT LIMITED

Executive Summary

THEBES CLOUD MANAGEMENT LIMITED shows clear signs of financial distress with negative working capital and shareholders' funds, though recent improvements in liabilities suggest some recovery. The company remains dependent on shareholder support and needs to focus on cash flow management and capital restructuring to stabilize its financial health. Without these interventions, the financial prognosis remains uncertain.

THEBES CLOUD MANAGEMENT LIMITED - Analysis Report

Company Number: 13121424

Analysis Date: 2025-07-20 14:37 UTC

Financial Health Assessment Report for THEBES CLOUD MANAGEMENT LIMITED
As of Financial Year Ending 31 January 2024

---

1. Financial Health Score: D

Explanation:
THEBES CLOUD MANAGEMENT LIMITED shows significant signs of financial distress with persistent negative net current assets and shareholders' funds over the past four years. Though there is a slight improvement in the latest year, the overall financial position remains weak. The company relies heavily on shareholder support and related-party loans to continue operations, reflecting a fragile financial state.

---

2. Key Vital Signs

Metric	31 Jan 2024	31 Jan 2023	Interpretation
Net Current Assets (Working Capital)	£-4,695	£-298,869	Slightly negative but vastly improved; working capital remains weak, indicating liquidity strain.
Shareholders' Funds (Equity)	£-3,931	£-296,578	Negative equity reduced substantially, but still a sign of accumulated losses and insolvency risk.
Debtors (Receivables)	£183,428	£189,680	Stable receivables; however, no trade debtors reported in 2024, potentially indicating timing or collection issues.
Current Liabilities	£188,123	£488,549	Significant reduction, mainly due to decreased debt owed to related parties, improving short-term solvency.
Fixed Assets (Net Book Value)	£764	£2,291	Minor assets held; limited fixed asset backing for operations.
Related Party Loans (Current Liabilities)	£131,123	£481,300	Large decrease, showing repayment but still substantial reliance on shareholder loans.

Interpretation of Vital Signs:

• The company has been "symptomatic" of liquidity and solvency distress for years, with large negative working capital and equity.
• The dramatic reduction in liabilities owed to the parent company in the latest year is a positive "treatment response," improving the immediate financial pressure.
• Negative shareholders' funds indicate accumulated losses, showing an ongoing "chronic condition" of financial weakness.
• The absence of trade debtors and the majority of debtors classified as "other" may point to non-traditional receivables or intercompany balances, which may not be immediately realizable cash.

---

3. Diagnosis

THEBES CLOUD MANAGEMENT LIMITED is in a financial recovery phase but remains in a precarious state. The company has historically exhibited symptoms of severe financial stress—negative working capital and shareholders' equity—indicating it has been operating with insufficient resources to meet short-term obligations and has accumulated losses over time.

The latest financial year reveals a significant improvement in liquidity as current liabilities dramatically decreased, primarily due to repayments or write-offs of intercompany debts. This suggests ongoing support from the parent company and a possible restructuring of intercompany balances.

However, the company still shows negative net assets and negative equity, indicating that despite improvements, the business is technically insolvent on a balance sheet basis. The going concern note in the accounts highlights that the directors rely on continued shareholder support, underlying the fragile financial health.

The company's business is in the IT services sector, which can be capital light but requires effective cash flow management. The small tangible asset base aligns with this, but the company must manage cash inflows and outflows carefully to avoid liquidity crises.

---

4. Recommendations

To strengthen the financial wellness of THEBES CLOUD MANAGEMENT LIMITED and ensure a sustainable recovery, the following actions are advised:

• Improve Cash Flow Management:
  Actively monitor receivables and accelerate collection processes. Investigate the nature of "other debtors" to confirm liquidity and realizability.

• Reduce Reliance on Related Party Loans:
  Develop a plan to gradually reduce dependency on shareholder support and intercompany loans to avoid liquidity shocks if support is withdrawn.

• Cost Control and Profitability Focus:
  Since the company has a history of losses, implement strict cost control measures and focus on improving operational profitability to rebuild retained earnings.

• Regular Financial Monitoring:
  Establish monthly financial reviews to detect early symptoms of distress and respond promptly.

• Explore Capital Injection or Restructuring:
  Consider additional equity investment or debt restructuring to improve the equity position and balance sheet strength.

• Enhance Financial Reporting:
  Provide fuller financial disclosures including profit and loss accounts to stakeholders to improve transparency and attract potential investors or creditors.

---

Medical Analogy Summary

THEBES CLOUD MANAGEMENT LIMITED has been suffering from a prolonged "financial illness" characterized by "symptoms" of negative working capital and equity, akin to a patient with chronic malnutrition and weakness. Recent "treatment" through debt reduction has led to some recovery signs, but the company remains "frail" and "dependent" on shareholder support. Without continued "therapy" via cash flow management, cost control, and capital restructuring, the prognosis remains guarded.

---