MAKING NUMBERS LTD

Executive Summary

MAKING NUMBERS LTD shows stable liquidity and positive working capital but faces early signs of financial stress due to rising liabilities and declining equity. While the company operates on a small scale typical for its industry, improving profitability and managing debts will be critical to maintain financial health and support future growth.

MAKING NUMBERS LTD - Analysis Report

Company Number: 13101141

Analysis Date: 2025-07-19 12:54 UTC

Financial Health Assessment: MAKING NUMBERS LTD (As of 31 December 2024)

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1. Financial Health Score: C

Explanation:
MAKING NUMBERS LTD demonstrates a stable but declining financial position with a modest asset base and low equity. The company is solvent and maintains positive working capital, which is a good sign of liquidity. However, the decreasing net assets and rising short-term liabilities indicate early symptoms of financial strain. The micro-entity status and limited scale also restrict resilience to unexpected financial shocks.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£539	Very low fixed assets, indicating a light asset base—typical for a service/media company.
Current Assets	£9,355	Healthy level of liquid and short-term assets (cash, receivables).
Current Liabilities	£4,826	Increased significantly from previous year, raising short-term obligations.
Net Current Assets (Working Capital)	£4,529	Positive and sufficient to cover short-term debts, indicating liquidity is maintained.
Net Assets (Equity)	£4,506	Declined from £6,679 in 2023, showing erosion of shareholder funds.
Long-Term Liabilities	£562	Small but increasing long-term debt, could pressure future cash flows.
Share Capital	£1.00	Nominal share capital, typical for micro-entities, does not impact financial strength much.
Employees	1	Very small workforce, consistent with micro-entity classification.

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3. Symptoms Analysis

• Declining Net Assets: The net asset value has fallen by approximately 33% from £6,679 in 2023 to £4,506 in 2024. This indicates the business is consuming equity capital faster than it is generating returns. It could be due to losses, asset write-downs, or increased liabilities.

• Rising Current Liabilities: Short-term liabilities have increased by nearly 68% (£4,826 vs £2,876), suggesting the company might be relying more on creditors or deferred payments to finance operations. This is a symptom of potential cash flow stress.

• Reduced Fixed Assets: Slight decrease in fixed assets may indicate minimal reinvestment or asset disposal, which could limit future operational capacity.

• Stable Current Assets: Despite the liabilities rising, current assets have only marginally decreased, suggesting some resilience in receivables or cash balances.

• Working Capital Remains Positive: Net current assets are still healthy, meaning the company can meet its short-term obligations, a vital sign of liquidity health.

• Micro-Entity Status: This limits the amount of financial disclosure and may mask some risks, but also means the company operates on a small scale where financial flexibility is limited.

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4. Diagnosis

MAKING NUMBERS LTD is currently in a stable but cautious financial condition. The company maintains a healthy liquidity position with positive working capital and sufficient current assets to cover short-term debts. However, there are early warning signs of financial strain due to the erosion of net assets and increased liabilities. This could reflect operational losses or increased reliance on creditor financing.

The business operates on a small scale with one employee and minimal fixed assets, typical for a media representation and production company. The financial "pulse" is steady but weakened, indicating the need for careful monitoring and proactive management to prevent further decline.

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5. Recommendations

• Improve Profitability: Investigate the causes of net asset decline, focusing on improving operational profitability to rebuild equity. Consider cost control and revenue growth strategies, especially in media production and representation.

• Manage Liabilities: Work on reducing current liabilities by negotiating longer payment terms with suppliers or accelerating receivables collection to ease cash flow pressures.

• Enhance Cash Flow Visibility: Implement tighter cash flow forecasting and monitoring to detect symptoms of distress early and react promptly.

• Consider Capital Injection: If feasible, increase shareholder funds or secure a small loan to strengthen the capital base and provide operational flexibility.

• Leverage Industry Strengths: Explore new revenue streams in sound recording, video production, and media representation to diversify income and enhance financial resilience.

• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain confidence with stakeholders.

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