Financial Health Assessment: EVENSURE MANAGEMENT LIMITED

1. Financial Health Score: F

Explanation: This company is in critical condition. The most alarming vital sign is that the company is marked as being in liquidation, which is the corporate equivalent of being in intensive care. Combined with steadily deteriorating net assets, substantial accumulated losses, and a declining cash position, this patient's prognosis is grave without significant intervention.

2. Key Vital Signs

Heartbeat - Revenue & Trading Status

• Status: Active but IN LIQUIDATION ⚠️
• Employees: 60 staff (maintained from prior year)
• Nature of Business: Private security activities (SIC 80100)
• Interpretation: The company appears to be still operating with staff while in liquidation proceedings – a highly precarious position akin to a patient with a failing heart still walking around.

Blood Pressure - Net Assets Trend

Interpretation: Net assets have hemorrhaged by nearly 64% from their 2018 peak. This is a sustained, accelerating decline – like blood pressure dropping steadily with no intervention to stop the bleeding.

Immune System - Cash Position

Interpretation: Cash reserves have been draining consistently since 2020. While the rate of decline has slowed, the company now holds only £130,589 in cash against £445,637 in current liabilities – a dangerously thin buffer.

Cholesterol - Liabilities vs Assets

• Current Assets: £503,267
• Current Liabilities: £445,637
• Current Ratio: 1.13:1
• Net Current Assets: £57,630

Interpretation: The current ratio of 1.13 is borderline – technically solvent but with minimal headroom. Like a patient whose arteries are just barely clear enough to function. The heavy reliance on debtors (£372,678) for current assets means liquidity is dependent on collecting from customers promptly.

Body Temperature - Profitability

• Retained Earnings (2024): (£211,543) – deeply negative
• Loss for the 16-month period: (£31,219)
• Annualized approximate loss: ~£23,400 per annum

Interpretation: The company has accumulated losses exceeding £211,000, meaning it has burned through more than its share premium and a substantial portion of its share capital over time. This is a chronic fever that has persisted for years.

3. Diagnosis

Primary Condition: Corporate Insolvency Risk – CRITICAL

The diagnosis is straightforward and severe: this company is in liquidation. This is the corporate equivalent of a "do not resuscitate" order having been issued, though the patient may still be breathing.

Secondary Conditions:

1. Chronic Profitability Deficit The accumulated losses of £211,543 against total shareholders' funds of just £61,325 reveals that the company has consumed approximately 77% of its original capital base (£272,868 in share capital plus premium). The retained earnings have been negative and worsening since at least 2016, indicating a business model that has been fundamentally unprofitable over the long term.

2. Deteriorating Asset Quality Net assets have fallen from £169,620 (2018) to £61,325 (2024) – a 64% erosion over six years. The 2024 period alone saw a £31,219 loss, representing approximately 34% of the remaining net assets being consumed in a single reporting period.

3. Debtors Dependency With £372,678 in debtors (74% of total assets), the company is heavily reliant on collecting from customers. If even 17% of these debtors default, the company's net assets would be wiped out entirely.

4. Tax Liability Pressure Taxation and social security liabilities of £200,619 represent 45% of current liabilities. This suggests either significant overdue obligations or substantial payroll-related costs relative to the company's size.

5. Governance Concerns The PSC register shows overlapping and potentially conflicting ownership claims: - Xxxxxx Xxxxxxxxname shown to subscribers: >75% shares, >75% voting, right to appoint/remove directors - West March Limited: >75% shares, >75% voting, right to appoint/remove directors - Xxxxxx Xxxxxxxxname shown to subscribers: 25-50% shares, 25-50% voting - Xxxxxx Xxxxxxxxname shown to subscribers: 25-50% shares, 25-50% voting - Xxxxxx Xxxxxxxxname shown to subscribers: 50-75% shares, 50-75% voting

Multiple parties claiming >75% or >50% ownership is mathematically impossible and suggests either administrative errors or serious governance disputes – akin to multiple doctors giving contradictory prescriptions.

4. Recommendations

Immediate Actions (Emergency Room)

1. Clarify Liquidation Status: Urgently confirm whether the company is genuinely in liquidation and, if so, under what type of proceedings (CVL, compulsory, etc.). This determines whether any other recommendations are even relevant.

2. Creditor Communication: If the company is still trading, establish immediate dialogue with key creditors, particularly HMRC regarding the £200,619 in taxation liabilities.

3. Director Responsibilities: Directors must urgently assess whether the company can pay its debts as they fall due. If not, continuing to trade may constitute wrongful trading under the Insolvency Act 1986.

Medium-Term Stabilisation (If Trading Continues)

4. Debtor Collection: Implement an aggressive debtor collection programme. With £372,678 outstanding, even a 10% improvement in collections would inject approximately £37,000 into cash flow.

5. Cost Reduction: The 16-month loss of £31,219 (approximately £23,400 annualized) must be eliminated. With 60 employees, the company needs to assess whether staffing levels are sustainable given revenue levels.

6. Review Lease Commitments: The company has £110,000 in non-cancellable operating lease commitments. Renegotiate or exit premises if possible to reduce fixed cost obligations.

7. Resolve PSC Conflicts: The ownership register must be corrected as a matter of priority. Conflicting ownership claims create legal uncertainty and may deter any potential investors or purchasers.

Strategic Options

8. Sale of Business: Given the liquidation status, explore whether the business (or its client contracts) can be sold as a going concern to preserve value and protect the 60 employees.

9. Company Voluntary Arrangement (CVA): If liquidation is not yet formalised, a CVA could allow the company to reach agreement with creditors to repay debts over time while continuing to trade.

10. Formal Insolvency Advice: Directors should seek immediate advice from a licensed insolvency practitioner to understand their options and protect themselves from potential personal liability.

Summary of Financial Trauma

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