TYPHOON WEALTH UK LIMITED

Executive Summary

Typhoon Wealth UK Limited shows severe financial distress with large negative net assets and liquidity shortages. Urgent financial restructuring and operational improvements are needed to restore health and avert insolvency.

TYPHOON WEALTH UK LIMITED - Analysis Report

Company Number: 13038553

Analysis Date: 2025-07-20 12:03 UTC

Financial Health Assessment for Typhoon Wealth UK Limited

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1. Financial Health Score: Grade F

Typhoon Wealth UK Limited exhibits severe financial distress, highlighted by substantial negative net assets and negative working capital. The company’s financial "vital signs" indicate critical symptoms of insolvency risk, which require urgent remedial action to restore financial stability.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Current Assets	-£6,398,466	A highly negative figure signals severe liquidity issues; current liabilities massively exceed current assets, indicating an inability to cover short-term debts. This is akin to a patient with dangerously low blood pressure—immediate intervention is needed to stabilize.
Net Assets (Shareholders’ Funds)	-£6,386,351	Negative net assets means liabilities exceed assets, showing insolvency on the balance sheet. This is a critical symptom of financial distress, comparable to a patient with vital organ failure.
Cash at Bank	£3,614	Minimal cash reserves relative to liabilities; insufficient to meet immediate obligations, reflecting a dangerously low cash flow "pulse".
Current Liabilities	£6,402,080	Extremely high short-term debts, largely due to amounts owed to group undertakings (~£6.3m), representing significant financial obligations that are currently unmet.
Fixed Assets (Tangible)	£12,115	Relatively low fixed asset base, limiting collateral or resources to leverage in a crisis.
Employee Count	2 (down from 10)	Reduction in workforce may indicate cost-cutting or operational contraction in response to financial strain.

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3. Diagnosis: Financial Condition Analysis

Typhoon Wealth UK Limited’s financial "symptoms" are stark:

• The company is in a state of severe financial distress with persistent and growing negative net assets over the past years, showing a worsening balance sheet position.
• Negative net current assets highlight liquidity crises, with current liabilities exceeding current assets by over £6 million. This indicates the company lacks the "healthy cash flow" necessary to meet short-term obligations.
• The large balance owed to group undertakings (>£6m) is a major contributor to the liability burden, potentially representing inter-company loans or unpaid balances, which if not addressed, could lead to insolvency.
• The minimal cash reserves and small fixed asset base limit the company's ability to generate liquidity through asset sales or immediate cash injection.
• A significant reduction in employees may reflect operational downsizing or cost-saving efforts due to financial constraints.
• The company remains active with recent director changes, which could indicate attempts to restructure or find new leadership to address the financial issues.

Overall, the financial health is comparable to a patient with a chronic, untreated illness that is now in acute crisis—without significant intervention, survival is at risk.

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4. Recommendations: Path to Financial Wellness

To improve the financial health and avoid potential insolvency, the company should consider the following actions:

1. Urgent Liquidity Support:

   • Seek immediate cash injections from shareholders, creditors, or related parties to improve working capital.
   • Negotiate extensions or restructuring of amounts owed to group undertakings to reduce immediate cash outflows.

2. Operational Restructuring:

   • Conduct a thorough review of operational costs and reduce non-essential expenses.
   • Evaluate the business model and revenue generation to improve cash inflows.

3. Financial Restructuring:

   • Engage professional advisors to explore debt restructuring, refinancing, or formal insolvency procedures if necessary.
   • Consider capital restructuring, such as share capital increase or debt-to-equity swaps, to shore up equity and improve the balance sheet.

4. Enhanced Financial Monitoring:

   • Implement rigorous cash flow forecasting and financial controls to detect and manage financial risks proactively.
   • Increase transparency and communication with stakeholders to maintain confidence.

5. Strategic Review:

   • Assess long-term viability and explore potential business pivots, partnerships, or asset disposals to generate cash.

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Executive Summary

Typhoon Wealth UK Limited faces critical financial challenges, marked by severe liquidity shortages and persistent negative net assets. Immediate interventions including liquidity support, debt restructuring, and operational overhaul are essential to stabilize and restore financial health. Without such measures, the company risks insolvency and possible closure.