AGINCARE LIMITED
Company number 03790793 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Financial Health Score: D (Distressed, Supported)
A grade of D indicates the company is showing clear signs of financial illness. Its balance sheet is in negative equity, liquidity is minimal, and continued operation appears reliant on external support. The company is not in formal insolvency proceedings, but its independent financial resilience is weak.
Key Vital Signs
| Metric | Latest (2022) | Prior (2021) | Interpretation |
|---|---|---|---|
| Net assets / (liabilities) | -£20,412 | +£10,000 | The company moved from positive net assets to net liabilities. Its debts exceed its assets, a condition comparable to balance-sheet insolvency. |
| Cash at bank | £4,088 | £4,118 | Extremely low liquidity; barely enough to cover minor obligations, like a very weak pulse. |
| Current assets | £14,088 | £44,500 | Sharp decline in short-term assets, driven mainly by a fall in debtors from £40,382 to £10,000. |
| Current liabilities | £34,500 | £34,500 | Entirely owed to group undertakings; no external trade creditors are reported. |
| Current ratio | 0.41 | 1.29 | Below 1.0, meaning current assets cannot cover short-term debts without support. |
| Shareholders’ funds | -£20,412* | +£10,000 | Equity has been eroded by accumulated losses. |
*The balance sheet shows share capital of £10,000 and a profit and loss reserve of -£30,412, netting to -£20,412.
Additional observations - The company had one employee (including the director) during the year. - Statutory filings are up to date; no overdue accounts or confirmation statements are reported. - The accounts state that the company incurred a loss after tax and was prepared on a going-concern basis only because group support is available.
Diagnosis
The company’s condition can be described as negative equity stabilized by group life support. The core symptoms are:
- Balance-sheet weakness – Net liabilities of £20,412 mean the company has no positive asset cushion to absorb further losses.
- Liquidity fragility – Cash of roughly £4,000 provides almost no protection against unexpected costs or delayed receipts.
- Total creditor dependency – All £34,500 of creditors are amounts owed to group undertakings. Survival depends on the parent company’s willingness to continue funding or to forgo repayment.
- Erosion of reserves – The shift from £10,000 net assets to £20,412 net liabilities in one year indicates a significant operating loss (approximately £30,412 before other movements).
- Going-concern reliance – The directors’ view that the company remains well positioned is explicitly conditional on ongoing parent support, as stated in the accounts.
The company is not in liquidation, administration, or receivership. However, without the parent’s backing, its ability to meet liabilities as they fall due would be in serious doubt.
Prognosis
Short-term outlook: Guarded but stable, provided the parent company continues to provide financial support. The unqualified audit opinion and current filings suggest no immediate compliance crisis.
Long-term outlook: Uncertain. If the company cannot return to profitability, or if group support is withdrawn, the risk of insolvency is high. The current structure resembles a patient dependent on a ventilator; removal of support would likely lead to rapid deterioration.
Recommendations
- Secure formal parental support – Obtain a written letter of comfort or continuing financial support from Agincare Group Limited to underpin the going-concern basis.
- Restructure the intercompany creditor – Explore converting or subordinating the £34,500 owed to group undertakings, which would improve net assets and reduce creditor pressure.
- Rebuild cash reserves – Introduce strict cash-flow forecasting and cost controls to lift the cash buffer above minimal levels.
- Clarify related-party balances – Ensure the £10,000 debtor and any other related-party amounts are documented, recoverable, and on appropriate terms.
- Produce current management accounts – The latest filed accounts are for 2022. Up-to-date management information is essential to monitor whether losses are continuing or stabilizing.
- Review the company’s strategic role – Assess whether the company retains a necessary function within the group; if it cannot trade independently or profitably, consider restructuring, merger, or orderly closure.