UGOKU PROJECTS LIMITED

Executive Summary

UGOKU PROJECTS LIMITED shows ongoing financial strain characterized by negative net assets and working capital deficits, indicating liquidity and solvency challenges. Immediate focus on improving cash flow, strengthening equity, and controlling costs is essential to restore financial health. Without corrective action, the company risks further deterioration of its financial condition.

UGOKU PROJECTS LIMITED - Analysis Report

Company Number: 13204874

Analysis Date: 2025-07-29 14:06 UTC

Financial Health Assessment Report for UGOKU PROJECTS LIMITED

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1. Financial Health Score: D

Explanation:
UGOKU PROJECTS LIMITED exhibits signs of financial distress with persistent negative net assets and working capital deficits over multiple years. The company's "vital signs" reflect a weak liquidity position and deteriorating equity, indicating challenges in sustaining operations without external support or corrective measures.

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2. Key Vital Signs

Metric	Latest Year (2025)	Interpretation
Current Assets	£4,639	Limited short-term assets to cover liabilities.
Current Liabilities	£6,035	Short-term debts exceeding assets, causing liquidity strain.
Net Current Assets	-£1,396	Negative working capital ("symptom of cash flow distress").
Net Assets / Shareholders' Funds	-£1,396	Negative equity implies liabilities exceed assets; "balance sheet weakness."
Fixed Assets	£0	No long-term assets, limiting collateral and investment capacity.
Share Capital	£100	Minimal equity base, highlighting limited capital buffer.
Average Employees	1	Micro entity with very small scale operations.

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3. Diagnosis

The financial "symptoms" of UGOKU PROJECTS LIMITED reveal a company struggling with liquidity and solvency:

• Liquidity Concerns: Negative net current assets mean the company does not have sufficient short-term assets to cover immediate liabilities. This "cash flow weakness" could impair operational capability and supplier confidence.

• Solvency Issues: The persistence of negative net assets over several years signals a "balance sheet illness." The cumulative losses or liabilities outweigh the assets, which raises concerns about long-term viability without a capital injection or profit turnaround.

• Operational Scale: With only one employee and no fixed assets, the company operates on a very small scale with limited resources, which may restrict growth potential but also implies lower overheads.

• Stability Factors: The director, Mr. Darryl Hanstein, holds significant control and has been in position since incorporation, potentially providing stable leadership. However, the financials indicate ongoing distress.

Overall, UGOKU PROJECTS LIMITED currently resembles a patient with chronic financial ailments that require careful monitoring and targeted treatment to avoid deterioration toward insolvency.

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4. Recommendations

To improve UGOKU PROJECTS LIMITED's financial health and restore stability, consider the following measures:

• Improve Liquidity: Prioritize enhancing cash flow by accelerating receivables collection, negotiating extended payment terms with suppliers, or securing short-term financing. A "healthy cash flow" is critical to meet immediate obligations.

• Strengthen Equity Base: Explore capital injections from shareholders or external investors to bolster net assets and provide a financial cushion. This would improve solvency and investor confidence.

• Cost Management: Review operating expenses given the micro scale, ensuring that costs align with revenue potential to avoid exacerbating losses.

• Business Development: Diversify revenue streams or enhance sales efforts in the retail clothing niche to increase turnover, improving both liquidity and profitability.

• Regular Financial Monitoring: Implement monthly financial reviews to detect early warning signs and take corrective action promptly, akin to regular health check-ups.

• Professional Advice: Engage with financial advisors or turnaround specialists if distress symptoms persist, to design a structured recovery plan.

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