Company Number: 14379569

Analysis Date: 2025-07-29 20:06 UTC

Financial Health Assessment for MANAGEIT LIMITED as of 30 September 2024

---

1. Financial Health Score: D

Explanation:
The company exhibits symptoms of financial distress, primarily due to persistent negative net current assets and net liabilities. While it remains active with ongoing operations and some growth in assets and workforce, the balance sheet shows a fragile liquidity position and negative shareholders' funds. This grade reflects a business that is currently struggling to achieve healthy financial stability but is not yet insolvent.

---

2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	13,430	Modest level of liquid and receivable assets supporting day-to-day operations
Cash at Bank	4,225	Limited cash cushion; potential "healthy cash flow" symptoms are weak
Debtors	9,205	Substantial receivables, which may strain cash flow if not collected promptly
Current Liabilities	13,520	Obligations due within one year exceed current assets, indicating a "symptom of distress"
Net Current Assets	-90	Slightly negative; working capital deficit implies potential liquidity issues
Net Assets	-90	Negative net worth; liabilities slightly exceed assets, a warning sign for solvency
Shareholders' Funds	-190	Equity is negative, indicating accumulated losses outweigh capital invested
Loans from Directors	11,670	High reliance on director loans to meet obligations, signaling financial strain
Average Employees	4	Increase from 1 to 4 employees shows growth in operations but also increased overhead

---

3. Diagnosis

The financial "vital signs" of MANAGEIT LIMITED reveal a company in early-stage financial distress. The negative net current assets and shareholders' funds suggest the company is operating with a working capital deficit and has accumulated losses exceeding its capital base. The high level of director loans indicates dependence on related parties for funding, which is a common lifeline but also a red flag for external creditors and investors.

The substantial debtors balance may be a double-edged sword: while it shows sales have been made, the ability to convert these receivables into cash is critical. The limited cash reserves further highlight tight liquidity, making it vulnerable to cash flow shocks or delayed payments.

On a positive note, the company has increased its workforce and current assets from the previous year, suggesting some operational growth and business activity. However, the financial health remains fragile due to the negative equity and liquidity shortfall. The absence of auditor’s review and reliance on small company accounting standards mean some financial details are less scrutinized.

---

4. Recommendations

To improve the financial wellness of MANAGEIT LIMITED, consider the following targeted actions:

• Improve Cash Flow Management: Accelerate collection of debtors through stricter credit controls and invoicing processes to convert "receivables" into "healthy cash flow" quickly.
• Reduce Reliance on Director Loans: Explore alternative financing sources such as bank facilities or equity injection to reduce dependency on related party loans which may pose risks if withdrawn.
• Cost Control: Monitor employee costs and overheads carefully to ensure growth in staff aligns with revenue increases; avoid overextension.
• Increase Capital Base: Consider raising new equity capital to restore positive shareholders' funds and improve net asset position.
• Regular Financial Monitoring: Implement monthly cash flow forecasts and financial reviews to detect early symptoms of worsening liquidity or solvency.
• Engage Professional Advice: Seek expert advice on restructuring finances or exploring government support schemes for small businesses if needed.
• Explore Revenue Growth: Focus on expanding client base or service offerings within management consultancy to enhance turnover and profitability.

---