FINTECH POWER MEDIA LTD

Executive Summary

FINTECH POWER MEDIA LTD, a newly incorporated micro-sized publishing company, exhibits early financial strain with negative net assets and insufficient current assets to cover liabilities, signaling liquidity challenges. Immediate focus on cash flow improvement and equity strengthening is essential to stabilize and support sustainable growth.

FINTECH POWER MEDIA LTD - Analysis Report

Company Number: 15162809

Analysis Date: 2025-07-29 20:08 UTC

Financial Health Assessment: FINTECH POWER MEDIA LTD

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1. Financial Health Score: D

Explanation:
The company shows early-stage financial strain typical of a startup in its first year, with net liabilities and negative shareholders' funds. Although the business is active and compliant with filings, its current financial position reflects symptoms of distress, notably negative net assets. This warrants close monitoring and proactive management to improve stability.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	3,952	Modest liquid resources available; limited cash or equivalents to cover short-term needs.
Current Liabilities	6,919	Obligations due within a year exceed available current assets, indicating potential liquidity risk.
Net Current Assets (Working Capital)	-2,967* (Calculated)	Negative working capital suggests difficulty meeting short-term debts from existing assets.
Total Assets Less Current Liabilities	3,952	Reflects current assets alone; no fixed assets recorded, limiting long-term security.
Creditors (due after 1 year)	6,919	Medium-term liabilities add to financial burden and negative equity.
Accruals and Deferred Income	671	Obligations or income received in advance, adding to liabilities.
Net Assets	-3,638	Negative net assets ("negative equity") indicate that liabilities exceed assets — a critical sign.
Shareholders Funds	-3,638	Equity capital invested is currently negative, reflecting accumulated losses or initial funding deficits.

*Note: The net current assets figure was reported as positive £3,952, but comparing current assets and current liabilities (£3,952 - £6,919) implies negative working capital. The accounts appear to present net current assets as current assets only, so a close review is needed.

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3. Diagnosis: What the Financial Data Reveals

• "Healthy cash flow" is absent: The company holds only a small amount in current assets (£3,952), insufficient to cover current liabilities (£6,919). This mismatch is a symptom of liquidity strain and potential cash flow challenges in meeting short-term debts.

• Negative net assets ("symptom of distress"): The net liabilities of £3,638 reflect that the business owes more than it owns. This may be due to startup costs, initial funding gaps, or early operational losses.

• Limited asset base: The company has no fixed assets recorded, indicating it relies entirely on current assets, which are minimal. This limits collateral availability for financing or creditworthiness.

• Single director and sole owner: The company is controlled 100% by one individual, which may streamline decision-making but increases risk concentration.

• Micro entity status with minimal filing requirements: Being a micro entity means simpler reporting but also less disclosure, which can mask underlying operational issues.

• No audit required yet: While exempt from audit, this means internal controls and financial scrutiny may be less rigorous, increasing reliance on management accuracy.

• Early stage company: Incorporated in late 2023 and filing first accounts for 2024, the company is nascent, and financial strain may reflect typical startup investment and ramp-up phases.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve liquidity position: Prioritize increasing cash reserves through working capital management, faster receivables collection, or securing short-term financing to cover liabilities.

• Address negative equity: Consider shareholder injections or loans to shore up equity and reduce net liabilities, improving balance sheet health.

• Monitor and control costs: Implement strict expense management to avoid further erosion of capital and improve profitability.

• Develop a cash flow forecast: Prepare detailed short-to-medium term cash flow projections to anticipate liquidity needs and avoid default.

• Explore asset acquisition: Building fixed assets or intellectual property could strengthen the asset base and provide collateral for future borrowing.

• Engage professional financial advice: Given early distress signs, consulting advisors for restructuring, financing options, or grant opportunities is advisable.

• Maintain compliance and transparency: Continue timely filings and consider voluntary audits or reviews to enhance credibility with stakeholders.

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