TRACKASWIM LIMITED

Executive Summary

TRACKASWIM LIMITED is a micro-entity in its first year showing early signs of financial distress with negative working capital and shareholders’ funds. The company’s financial health is currently fragile, reflecting typical start-up challenges. Immediate focus on capital infusion, cash flow management, and revenue growth is essential to stabilize and improve its financial outlook.

TRACKASWIM LIMITED - Analysis Report

Company Number: 15075408

Analysis Date: 2025-07-20 15:08 UTC

Financial Health Assessment: TRACKASWIM LIMITED

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1. Financial Health Score: D

Explanation:
TRACKASWIM LIMITED is a newly incorporated micro-entity with its first financial period ending 31 August 2024. The company shows significant signs of financial distress, reflected by negative net current assets and shareholders’ funds of £-1,540. This places the company below a healthy financial baseline, earning a grade of D. While not critical yet, the company's financial "vital signs" suggest early symptoms of liquidity stress and undercapitalization that need urgent attention.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	90	Very low cash or receivables; limited liquidity.
Current Liabilities	1,630	Short-term debts higher than assets, risk of cash shortfall.
Net Current Assets	-1,540	Negative working capital; red flag for liquidity.
Total Assets Less Current Liabilities	-1,540	Negative net assets; company owes more than it owns.
Shareholders' Funds	-1,540	Equity is negative; company is technically insolvent on balance sheet basis.
Number of Employees	1	Small operation; low overheads but limited revenue capacity.
Account Category	Micro	Simplified reporting; limited financial history available.

Interpretation:
The company’s financial "pulse" shows a lack of sufficient liquid resources to meet immediate obligations—akin to a patient with low blood pressure indicating poor circulation. Negative net current assets signal "symptoms" of distress in covering short-term debts, which could constrain operations or growth. Negative shareholders' funds highlight a capital deficiency, often a warning sign of insolvency risk if not addressed.

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3. Diagnosis

TRACKASWIM LIMITED is at an early stage of its business life, having incorporated in August 2023 and filing its first accounts for a 12-month period ending August 2024. The financial snapshot reveals that the company started operations with inadequate capital or has incurred startup costs exceeding initial funding. The negative net current assets and shareholders' funds indicate the company has liabilities exceeding its assets, a classic symptom of financial strain.

This condition is often common in start-ups during initial phases when investment inflows and revenues have yet to ramp up. However, it also poses a risk to the company’s financial health if the negative working capital position persists without remedial action. The presence of only one employee and the micro-entity status limit operational scale and resource flexibility, suggesting the company must rely heavily on timely funding or revenue growth to stabilize.

The directors have complied with filing requirements, and there are no overdue accounts or returns, which is a positive governance sign.

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4. Recommendations

To improve the financial wellness of TRACKASWIM LIMITED and move toward a healthier financial state, the following steps are advised:

• Capital Injection: Seek additional equity funding or shareholder loans to restore positive shareholders' funds and improve the balance sheet. This will strengthen the "heart" of the company's finances.

• Cash Flow Management: Carefully monitor and control cash flow to prioritize paying down current liabilities and avoid liquidity crises. Establish a cash flow forecast to anticipate shortfalls.

• Revenue Generation: Accelerate efforts to generate revenue from the web portal business, focusing on marketing and customer acquisition strategies to build a steady income stream.

• Cost Control: Maintain tight control on operating expenses, especially given the early stage with limited income, to avoid exacerbating negative working capital.

• Financial Monitoring: Implement regular financial reviews to track key metrics and detect "symptoms" early. This will allow proactive management before issues become critical.

• Professional Advice: Engage with financial advisors or accountants for strategic planning and to explore grant or funding opportunities available for start-ups in the tech/web portal sector.

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