TRASNAGH LIMITED

Executive Summary

TRASNAGH LIMITED is currently facing significant financial distress, with deteriorating liquidity and negative equity indicating potential insolvency risk. Immediate actions to improve cash flow, manage costs, and seek professional guidance are essential to stabilize the business and avoid further financial decline.

TRASNAGH LIMITED - Analysis Report

Company Number: NI692019

Analysis Date: 2025-07-20 12:49 UTC

Financial Health Assessment of TRASNAGH LIMITED

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1. Financial Health Score: D

Explanation:
The company is showing clear symptoms of financial distress. The balance sheet reveals negative net current assets and net liabilities, indicating that current liabilities exceed current assets by a significant margin. This "symptom" suggests potential liquidity issues, which could impair the company’s ability to meet its short-term obligations. Despite being an active micro-entity, the financial position deteriorated markedly from 2023 to 2024, a concerning trend that lowers the overall financial health grade.

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2. Key Vital Signs

Metric	2023 (£)	2024 (£)	Interpretation
Current Assets	8,560	869	Sharp drop indicates reduced liquid resources, a sign of weakening cash flow or asset utilization.
Current Liabilities	10,863	10,222	Slight reduction but still exceeds current assets, indicating short-term debt pressure.
Net Current Assets (Working Capital)	-2,173	-9,205	Negative and worsening, indicating inability to cover short-term liabilities with short-term assets.
Total Net Assets (Equity)	2,823	-9,880	Equity turned negative, signaling insolvency on a balance sheet basis, a critical warning.
Employees	0	0	No staff employed, possibly low operational activity or early-stage business.
Account Category	Micro	Micro	Minimal filing requirements, but financial distress remains evident despite small scale.

Interpretation of Vital Signs:

• The "heartbeat" of the company—its liquidity—is weak and deteriorating.
• Negative net current assets are a classic symptom of cash flow distress, risking inability to pay creditors on time.
• Negative net assets indicate that total liabilities exceed total assets, often a precursor to insolvency risk.
• Lack of fixed assets and employees suggest limited operational scale or investment.

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3. Diagnosis

TRASNAGH LIMITED is currently in a financially fragile state, exhibiting "symptoms of distress" such as negative working capital and negative shareholders’ funds. The balance sheet deteriorated significantly from 2023 to 2024, with net liabilities rising sharply to £9,880. This negative equity situation is akin to a “patient” whose vital organ (financial foundation) is failing.

Despite being a micro-entity, the company’s inability to maintain positive net current assets signals a liquidity crunch. The absence of employees and fixed assets suggests minimal operational activity, potentially indicating that the company is either in a startup phase with insufficient capital injection or facing operational challenges that prevent growth or turnover generation.

The directors' reports and accounts do not indicate audit exemption violations or overdue filings, which is positive, but this does not offset the financial weaknesses.

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4. Recommendations

To stabilize and improve TRASNAGH LIMITED’s financial health, consider the following actions:

• Improve Liquidity:
  Inject fresh capital or secure short-term financing to cover debts and improve working capital. This is the equivalent of providing emergency treatment to restore vital cash flow.

• Cost Management:
  Review and reduce overheads, especially where non-essential costs are draining resources. Minimize expenses until cash flow stabilizes.

• Increase Revenue Generation:
  If operational, focus on accelerating sales or contracts to improve cash inflows. For a company in specialised construction, securing reliable contracts is critical.

• Asset Base Review:
  Consider acquiring or utilizing fixed assets that may improve operational capacity or collateral for financing.

• Engage Professional Advice:
  Seek expert financial and legal advice early to avoid insolvency risks—akin to a specialist consultation when symptoms worsen.

• Monitor Financial KPIs Regularly:
  Establish monthly cash flow and balance sheet monitoring to detect early warning signs and act promptly.

• Consider Strategic Alternatives:
  If recovery seems difficult, explore restructuring options, partnerships, or even controlled winding-up to minimize creditor losses.

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