UNITY CONSULTANT LTD

Executive Summary

UNITY CONSULTANT LTD has experienced a sharp decline in financial health, with liquidity and solvency indicators showing serious distress. Urgent actions to manage cash flow, restructure debt, and reduce costs are critical to prevent insolvency. Despite the challenges, timely intervention can stabilize the company’s financial condition and improve future prospects.

UNITY CONSULTANT LTD - Analysis Report

Company Number: 13133346

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

Financial Health Assessment for UNITY CONSULTANT LTD

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1. Financial Health Score: D

Explanation:
The company has shown a significant deterioration in its financial position in the latest reporting year, moving from positive net assets of £1,415 in 2024 to negative net assets of -£11,095 in 2025. This shift indicates financial distress and potential solvency issues, warranting a below-average grade.

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2. Key Vital Signs

Metric	2024 (£)	2025 (£)	Interpretation
Current Assets	5,100	0	Complete depletion of liquid resources.
Current Liabilities	3,685	11,095	Current debts tripled, increasing pressure.
Net Current Assets (Working Capital)	1,415	-11,095	Shift from positive to negative working capital; liquidity crisis.
Net Assets (Shareholders Funds)	1,415	-11,095	Equity wiped out; company is insolvent on balance sheet.
Average Employees	1	1	Stable, but very small workforce, limiting operational capacity.

Interpretation:

• The vital sign of cash flow and working capital is showing clear "symptoms of distress" with net current assets turning sharply negative, indicating the company may struggle to meet short-term obligations.
• The liquidity is severely impaired; no current assets remain to cover debts due within one year.
• Negative net assets indicate balance sheet insolvency, a critical warning sign that the company’s liabilities exceed its assets.

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3. Diagnosis

UNITY CONSULTANT LTD is exhibiting strong "symptoms of financial distress." The complete erosion of current assets alongside a tripling of current liabilities in the latest year suggests the company is facing acute cash flow constraints and may be unable to sustain operations without external intervention. The negative net assets position signals insolvency on a balance sheet basis, which is a serious red flag for creditors and shareholders alike.

Historically, the company showed modest positive net assets and working capital, but the drastic deterioration in 2025 implies either significant losses, write-offs, or a build-up of unmanageable liabilities. The small scale of operations (micro-entity with one employee) means limited internal resources to buffer this.

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4. Recommendations

• Urgent Cash Flow Management: Establish immediate cash flow controls and seek short-term financing or director loans to cover current liabilities and avoid default.
• Cost Reduction: Review and reduce overheads aggressively to conserve cash. One employee suggests tight operational scope; ensure no unnecessary expenses remain.
• Debt Restructuring: Negotiate with creditors to restructure debts and extend payment terms to relieve pressure on working capital.
• Financial Review: Conduct a detailed profit and loss analysis to identify loss-making activities or unusual expenses causing the financial deterioration.
• Strategic Review: Consider whether the business model remains viable; explore pivoting or additional revenue streams if the current trajectory is unsustainable.
• Professional Advice: Engage a financial advisor or insolvency practitioner to explore options such as voluntary arrangement or restructuring to protect the company and stakeholders.
• Monitor Compliance: Maintain timely filing of accounts and confirmation statements to avoid regulatory penalties that could exacerbate financial strain.

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Medical Analogy Summary

UNITY CONSULTANT LTD is currently in a state akin to "acute financial illness," with vital signs (liquidity and solvency) indicating "organ failure" of its financial system. Without immediate intervention (treatment), the prognosis risks worsening, potentially leading to formal insolvency procedures. Early diagnosis and remedial action can improve the chance of recovery and sustainable financial health.

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