DOMINION CITY MANCHESTER

Executive Summary

Dominion City Manchester is facing financial strain evidenced by negative working capital and net assets, signaling liquidity and solvency challenges. Immediate focus on cash flow management, creditor negotiations, and cost control is essential to restore financial health and ensure operational sustainability. Without prompt action, the company risks worsening financial distress.

DOMINION CITY MANCHESTER - Analysis Report

Company Number: 14070481

Analysis Date: 2025-07-29 15:52 UTC

Financial Health Assessment for Dominion City Manchester

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1. Financial Health Score: D

Explanation:
Dominion City Manchester shows signs of financial distress in its latest financial year (2023-24), with negative net current assets and negative net assets. This indicates the company is currently operating in a state akin to a patient with symptoms of internal imbalance—specifically, liquidity stress and a weakened capital base. While the company was financially healthier in the prior year, the rapid decline in working capital and shareholders’ funds signals caution and the need for urgent intervention.

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2. Key Vital Signs (Critical Metrics)

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	2,220	1,669	Small but stable investment in tangible assets.
Current Assets (Cash only)	1,717	2,782	Decline in cash reserves; less liquidity buffer.
Current Liabilities	5,557	816	Sharp increase in short-term debts—red flag for cash flow.
Net Current Assets	-3,840	1,966	Shift from positive to negative working capital—symptom of liquidity strain.
Net Assets / Shareholders Funds	-1,620	105	Movement to negative equity—indicates accumulated losses or liabilities exceeding assets.

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3. Diagnosis: What the Financial Data Reveals

• Liquidity Distress: The most acute symptom is the negative net current assets (£-3,840) driven by a fivefold increase in current liabilities versus a decrease in cash reserves. This suggests the company may struggle to meet short-term obligations as they come due—a classic sign of cash flow problems.

• Capital Erosion: Net assets have shifted from a modest positive (£105) to negative (£-1,620), demonstrating that the company’s liabilities now outweigh its assets. This is akin to a weakened immune system for a business, making it vulnerable to external shocks and less able to invest or grow.

• Asset Base: The fixed assets have increased modestly, indicating some investment in tangible resources such as fixtures and computer equipment. However, the carrying value of assets is small relative to liabilities, providing limited security for creditors.

• No Employees: The accounts note zero employees, including directors, which may imply reliance on volunteers or external contractors. This could limit operational capacity and impact revenue generation, but also reduce payroll risks.

• Nature of Business and Control: The company operates in social, religious, and educational support services, with two individuals holding significant control (each with 25-50% voting rights). The limited liability guarantee structure (no share capital) means members’ financial exposure is capped, but also limits equity financing options.

• No Audit Requirement: As a small entity, exemption from audit provides less external assurance on financials, so internal financial management must be robust to detect and manage risks.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Immediate Cash Flow Management:

   • Prioritize collection of receivables and control payments to reduce current liabilities.
   • Implement a cash flow forecast to anticipate shortfalls and avoid liquidity crises.

2. Debt Restructuring and Negotiation:

   • Engage with creditors to renegotiate payment terms or secure extensions to ease short-term pressure.
   • Explore grants, donations, or social funding relevant to the company’s sector to improve cash inflows.

3. Expense Control:

   • Review operational expenses rigorously to identify non-essential costs that can be reduced without impacting core services.

4. Strengthen Financial Oversight:

   • Establish regular financial reviews and reporting to members to ensure transparency and early identification of financial issues.

5. Explore Revenue Enhancement:

   • Develop strategies to increase income from services or fundraising aligned with their social and religious activities, possibly leveraging community engagement.

6. Consider Professional Advice:

   • Seek expert guidance on financial restructuring and sustainability planning, particularly given the negative net assets and liquidity concerns.

7. Monitor Asset Utilisation:

   • Ensure fixed assets are contributing effectively to operations or consider asset disposals to improve liquidity if necessary.

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Medical Analogy Summary

Dominion City Manchester’s financial "vital signs" show clear "symptoms of distress" with a critical liquidity shortage and capital depletion. The company’s financial "immune system" is weakened, requiring urgent "treatment" via cash flow management, debt restructuring, and cost control to regain stability and avoid "financial collapse."

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