TRAIPSING CLODHOPPER LTD

Executive Summary

TRAIPSING CLODHOPPER LTD is currently solvent but shows a marked decline in liquidity and equity, indicating a weakening financial condition. While the company is not in immediate distress, restoring healthy cash flow and reviewing operational strategy are critical to improving its financial resilience and ensuring sustainable growth.

TRAIPSING CLODHOPPER LTD - Analysis Report

Company Number: 14157158

Analysis Date: 2025-07-29 20:01 UTC

Financial Health Assessment: TRAIPSING CLODHOPPER LTD

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1. Financial Health Score: C

Explanation:
TRAIPSING CLODHOPPER LTD exhibits some signs of financial strain, particularly a notable decline in current assets and shareholders' funds over the last year, which suggests weakening liquidity and equity base. However, the company remains solvent with positive net current assets and shareholders’ funds, indicating it is not in immediate distress. The score reflects moderate health with caution advised.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	30,695	104,611	Sharp drop signals reduced liquidity ("healthy cash reserves" shrinking).
Current Liabilities	12,092	70,293	Significant reduction in short-term debts ("relief from immediate obligations").
Net Current Assets	18,603	34,318	Positive but declining working capital, less buffer to cover short-term debts.
Shareholders' Funds	17,803	33,618	Decreased equity suggests "weakened financial immunity" and lower retained profits.
Employee Count	0	1	Reduction in workforce may reduce overhead but also signals possible downsizing or operational changes.

Additional Notes:

• The company is classified as a micro-entity under UK accounting rules, which limits the detail in financial reporting but indicates size and scale.
• No audit was required or performed, so figures are unaudited.
• Positive net current assets and shareholders’ funds suggest solvency.
• The large drop in current assets from £104k to £30k is a notable symptom requiring further inquiry.

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3. Diagnosis: What the Financial Data Reveals

The company shows symptoms consistent with a "cooling metabolism." The drastic reduction in current assets and shareholders’ funds signals that the company may have experienced a contraction in operations, possibly using up cash reserves to cover costs or restructure. The decrease in current liabilities is a positive sign, indicating some debts were paid down or restructured, but the drop in assets outpaces this.

The absence of employees suggests either automation, outsourcing, or a pause in operational activity, which could be a strategic move or a sign of distress. Overall, the company remains solvent and able to meet short-term obligations ("no immediate threat to survival"), but financial resilience ("immune system") is weakened compared to the prior year.

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4. Recommendations: Specific Actions for Financial Wellness

• Improve Liquidity Management: Restore and maintain healthier cash reserves through tighter control of expenses, better receivables management, or seeking short-term financing if needed.
• Operational Review: Investigate the cause of asset depletion and workforce reduction. Consider if business model adjustments or revenue diversification are required to stabilize income.
• Cost Control: Monitor and manage overheads carefully to preserve working capital. Negotiate payment terms with suppliers to optimize cash flow.
• Financial Planning: Develop a cash flow forecast to anticipate future liquidity needs and avoid "cash flow shock."
• Consider Funding Options: If growth is intended, explore equity injections or small business loans to replenish working capital and support operations.
• Regular Monitoring: Establish monthly financial health checks focusing on liquidity ratios and equity levels to catch symptoms early.

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