ENLIGHTENED TRANSFORMATION FOR MIND BODY AND SOUL LTD

Executive Summary

ENLIGHTENED TRANSFORMATION FOR MIND BODY AND SOUL LTD currently exhibits signs of financial fragility, notably a sharp decline in cash and working capital that signals liquidity stress. The company’s small equity base and absence of employees highlight its micro-business scale and vulnerability. Immediate actions focusing on cash flow management, working capital optimization, and potential capital support are essential to restore financial health and prevent further deterioration.

ENLIGHTENED TRANSFORMATION FOR MIND BODY AND SOUL LTD - Analysis Report

Company Number: 14035601

Analysis Date: 2025-07-20 16:10 UTC

Financial Health Assessment: ENLIGHTENED TRANSFORMATION FOR MIND BODY AND SOUL LTD

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1. Financial Health Score: D

Explanation:
The company’s financial health shows signs of fragility and distress. While it remains active and solvent, the dramatic drop in cash reserves and net current assets in the latest year signals potential liquidity stress. The small net asset base and reliance on director loans previously also suggest a fragile capital structure. This grade reflects the need for urgent attention to cash flow and working capital management to avoid worsening financial strain.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Cash at Bank	994	4,451	Sharp decline in cash indicates dwindling liquidity—symptom of cash flow “weakness.”
Current Liabilities	529	119	Increase in short-term debts adds pressure on immediate financial obligations.
Net Current Assets (Working Capital)	465	4,332	Working capital dropped sharply, indicating reduced buffer to cover short-term liabilities.
Net Assets (Shareholders’ Funds)	465	508	Low and decreasing equity base reflects limited capital cushion and potential solvency concerns.
Loans from Directors (Long-term Creditors)	0	3,824	Removal of director loans may improve balance sheet clarity but reduces financial support.
Average Employees	0	0	No employees may indicate a small or owner-operated business with limited operational scale.

Vital Sign Interpretation:
The company’s liquidity “pulse” is weak, with cash reserves nearly exhausted and working capital sharply falling. The increase in current liabilities combined with reduced cash signals symptoms of financial distress. The elimination of director loans, previously a form of informal financing, both cleans up the balance sheet but also removes a financial “lifeline.” The low net asset base indicates vulnerability to shocks and limited financial “reserves.”

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3. Diagnosis

ENLIGHTENED TRANSFORMATION FOR MIND BODY AND SOUL LTD is a very small, owner-controlled private limited company operating in the “other human health activities” sector. The financial data reveals a company in the early stages of development or possibly contraction:

• Liquidity Stress: The drastic reduction in cash and working capital is a clear symptom of cash flow strain, potentially caused by lower revenues, delayed customer payments, or increased expenses.
• Capital Structure Weakness: The low and declining net assets and shareholders’ funds suggest limited retained earnings and capital buffer.
• Debt Profile: Previously, the company carried director loans as long-term creditors which are now cleared; while this reduces liabilities, it also removes an informal source of funding.
• Operational Scale: No employees and modest asset base imply a micro-business with limited scale and financial resilience.
• Compliance and Governance: The company is current with filings and accounts, showing good governance practices despite financial challenges.

Overall, the company’s financial condition is fragile and exhibits early signs of distress that, if unchecked, could escalate into solvency issues. The business resembles a patient with “low blood pressure” in liquidity terms, requiring interventions to restore healthy cash flow and strengthen the balance sheet.

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4. Recommendations

To improve the financial wellness and restore a healthy financial state, the following steps are advised:

1. Strengthen Cash Flow Management:

   • Tighten control over receivables and accelerate collections to boost cash inflows.
   • Delay non-essential expenditures and negotiate extended payment terms with suppliers.
   • Consider short-term financing options (overdraft, invoice factoring) to bridge liquidity gaps.

2. Enhance Working Capital Efficiency:

   • Monitor and manage current liabilities proactively to avoid payment defaults.
   • Explore opportunities to convert any slow-moving assets into cash.

3. Capital Injection or Funding Support:

   • The sole shareholder/director may consider injecting additional equity or providing director loans again to shore up capital.
   • Alternatively, seek external investment or small business loans if feasible.

4. Business Review and Revenue Growth:

   • Analyze the business model and market activities to identify reasons for cash depletion.
   • Develop strategies to increase revenue, such as marketing, service diversification, or partnerships.

5. Financial Reporting and Monitoring:

   • Maintain strict monthly financial reviews to detect early symptoms of financial distress.
   • Engage an accountant or financial advisor to assist with cash flow forecasting and budgeting.

Taking these steps can stabilize cash flow, improve liquidity “vital signs,” and rebuild the company’s financial resilience.

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