UPTIME GLOBAL LIMITED

Executive Summary

UPTIME GLOBAL LIMITED is showing signs of financial strain with negative net assets and working capital deficits, although recent improvements suggest cautious optimism. The company must focus on liquidity management and operational efficiency to restore financial health. Proactive financial monitoring and exploring alternative funding will be crucial to improving its outlook.

UPTIME GLOBAL LIMITED - Analysis Report

Company Number: 13951323

Analysis Date: 2025-07-20 15:17 UTC

Financial Health Assessment: UPTIME GLOBAL LIMITED (as of 31 March 2024)

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1. Financial Health Score: D

Explanation:
UPTIME GLOBAL LIMITED shows persistent negative net assets and net current liabilities over the past three years, though there is a noticeable improvement in the latest year. The company operates as a private limited by guarantee entity with no share capital, which limits capital raising options. The financial position signals distress symptoms that require careful management to restore financial stability.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	345,770	Cash and short-term receivables have improved, indicating better liquidity than prior years.
Current Liabilities	372,467	Short-term debts remain high and exceed current assets, creating a liquidity strain.
Net Current Assets	-26,697	Negative working capital indicates potential cash flow challenges in meeting short-term debts.
Net Assets (Total Equity)	-26,697	Negative net worth signals the company owes more than it owns, a symptom of financial distress.
Average Number of Employees	4	Small workforce consistent with micro-entity status, manageable but reliant on efficient resource use.
Account Category	Micro	Benefits from simplified reporting but limited financial disclosure restricts detailed analysis.

Additional Notes:

• The company is limited by guarantee with no share capital, meaning members' liability is limited to £1, restricting equity-based capital infusion.
• Directors have acknowledged responsibility for compliance, but no audit was required due to micro-entity status.
• The company has improved net current liabilities from -£115,718 (2023) to -£26,697 (2024), showing recovery signs but still in negative territory.

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3. Diagnosis: What the Financial Data Reveals

• Symptoms of Financial Distress:
  The persistent negative net assets and working capital deficits are classic symptoms of financial strain, indicating the company’s liabilities exceed its assets. This may lead to difficulties in paying suppliers, creditors, or meeting other short-term obligations without additional funding or operational improvements.

• Improvement Trend:
  The reduction of net current liabilities from -£115,718 to -£26,697 over the last year reflects some effective management of cash flow or liabilities. This "healthier" cash position is a positive sign but not yet sufficient to restore full financial health.

• Limited Capital Structure:
  Being a company limited by guarantee with no share capital means the company cannot raise funds by issuing shares, relying primarily on operational income, grants, or debt financing. This limits flexibility in addressing funding gaps.

• Operational Scale and Risk:
  With only 4 employees and operating in management consultancy (SIC 70229), the business is likely service-based with relatively low fixed costs but dependent on client acquisition and retention. Negative equity could undermine stakeholder confidence.

• Governance and Control:
  Directors and People with Significant Control hold substantial voting rights and appoint/removal powers, indicating centralized control which can be good for swift decision-making but requires strong governance to avoid risks.

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4. Recommendations: Steps to Improve Financial Wellness

1. Cash Flow Management:
   Prioritize improving cash inflows and controlling outflows to turn net current assets positive. This could include negotiating longer payment terms with creditors, accelerating receivables collection, or cutting discretionary expenses.

2. Explore Alternative Funding:
   Since equity issuance is not an option, consider alternative financing such as short-term loans, grants, or partner funding to shore up liquidity.

3. Operational Efficiency:
   Review service delivery and cost structure to enhance margins. With a small team, maximizing productivity is critical.

4. Strengthen Financial Monitoring:
   Implement regular financial reviews and forecasting to detect distress symptoms early and take proactive measures.

5. Stakeholder Communication:
   Maintain transparent communication with creditors, suppliers, and members to build trust and possibly negotiate terms that ease cash flow pressures.

6. Strategic Growth Initiatives:
   Explore market opportunities that could increase revenues sustainably, reducing reliance on external funding.

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