UPLIFT GROUP LTD

Executive Summary

UPLIFT GROUP LTD is currently exhibiting signs of financial distress, with persistent negative working capital and shareholders’ funds indicating liquidity and capital inadequacies. As a young company in the education sector, it faces critical challenges but could improve its financial health through enhanced cash management, capital injection, and strategic growth initiatives. Immediate attention to these areas is essential to avoid further deterioration of financial stability.

UPLIFT GROUP LTD - Analysis Report

Company Number: 13538734

Analysis Date: 2025-07-20 17:06 UTC

Financial Health Assessment: UPLIFT GROUP LTD

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1. Financial Health Score: D

Explanation:
UPLIFT GROUP LTD’s financial health is currently weak, reflecting distress signals typical of a company struggling with liquidity and capital adequacy. The company shows persistent net current liabilities and negative net assets (shareholders’ funds), which indicate an ongoing imbalance between short-term obligations and available resources. Given the small scale and early stage of the company (incorporated 2021), this grade reflects critical warning signs but also potential for recovery with proper intervention.

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2. Key Vital Signs: Critical Metrics and Interpretation

Metric	2023 Value	2022 Value	Interpretation
Current Assets	£256	£437	Extremely low cash and receivables; insufficient to cover liabilities
Cash at Bank	£156	£337	Cash reserves are minimal and have halved year on year
Current Liabilities	£1,238	£850	Short-term debts increasing, exceeding current assets
Net Current Assets	-£982	-£413	Negative working capital — “symptom of liquidity distress”
Net Assets (Equity)	-£982	-£413	Negative equity indicates that liabilities exceed total assets
Shareholders’ Funds	-£982	-£413	Reflects accumulated losses or insufficient capital injection
Turnover	Not disclosed	Not disclosed	Not available, limiting revenue analysis
Number of Employees	1	1	Very small staff base, consistent with micro/small company scale

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Liquidity Crisis: The company’s current liabilities (£1,238) vastly exceed its current assets (£256), leading to a negative working capital position of -£982. This “unhealthy cash flow” situation means the company may struggle to meet its short-term obligations without external financing or operational improvements.

• Capital Deficiency: Negative net assets and shareholders’ funds suggest the company’s accumulated losses or undercapitalisation have eroded the equity base. This “symptom of financial distress” may affect the company’s ability to secure credit and investor confidence.

• Stagnant Debtors: Debtors remain constant at £100 over the two years, indicating no growth in receivables or business scale. Combined with declining cash balances, this points to a lack of revenue growth or collection issues.

• Small Scale & Early Stage: Incorporated only in 2021, UPLIFT GROUP LTD is a very young company operating in the “Other education not elsewhere classified” sector. This early stage of business life can explain limited assets and negative equity but also underscores the urgency to establish a viable revenue model.

• No Audit Requirement: The company is exempt from audit due to its small size, but this also means less external scrutiny of financial controls.

Overall, these “symptoms” suggest the company is in a fragile financial state, potentially at risk if current trends continue without strategic or financial restructuring.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Improve Liquidity Management:

   • Increase cash reserves through improved collection of receivables or injection of fresh capital.
   • Negotiate extended payment terms with creditors to ease short-term cash flow pressure.

2. Capital Injection:

   • Consider equity funding from the current controlling shareholder or external investors to strengthen the balance sheet and reduce negative net assets.

3. Revenue Growth Strategy:

   • Develop a clear plan to increase turnover and diversify income streams, which is critical for moving from a negative equity position to profitability.

4. Cost Control and Operational Efficiency:

   • Review and reduce overhead costs where possible, especially given the single-employee structure, to improve the bottom line.

5. Financial Reporting and Forecasting:

   • Implement more robust financial controls and forecasting to anticipate cash flow needs and avoid surprises.

6. Engage Professional Advice:

   • Seek expert advice from accountants or business advisors specializing in small companies for turnaround strategies.

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