MANAGEMENT & FINANCIAL SOLUTION LIMITED

Executive Summary

Management & Financial Solution Limited shows signs of financial fragility characterized by a very tight liquidity position and minimal equity buffers. The company’s current assets barely cover its short-term liabilities, indicating a stressed cash flow situation dependent on timely debtor payments. Prompt action to improve cash reserves and debtor management is essential to prevent financial distress and ensure sustainable growth.

MANAGEMENT & FINANCIAL SOLUTION LIMITED - Analysis Report

Company Number: 13592566

Analysis Date: 2025-07-20 15:17 UTC

Financial Health Assessment for MANAGEMENT & FINANCIAL SOLUTION LIMITED

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1. Financial Health Score: D

Explanation:
The company displays a precariously thin margin of net current assets (£110) relative to current liabilities (£20,272), suggesting limited liquidity to cover short-term obligations. This score reflects symptoms of financial fragility, with a balance barely above breaking even, indicating vulnerability to cash flow shocks or unexpected expenses.

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2. Key Vital Signs

Vital Sign	Value (2024)	Interpretation
Current Assets	£20,382	Includes cash and debtors; reasonable asset base but largely tied up in receivables (debtors).
Cash on Hand	£2,721	Low cash reserve, indicating tight liquidity and limited immediate spending power.
Debtors (Trade Receivables)	£17,661	High debtor balance suggests sales made on credit; risk of delayed payment or bad debts.
Current Liabilities	£20,272	Obligations due within one year; nearly matches current assets, causing liquidity stress.
Net Current Assets	£110	Very thin working capital, indicating cash flow "pulse" is weak and the company is barely solvent in the short term.
Shareholders' Funds (Equity)	£110	Minimal equity buffer, showing the company has not accumulated retained profits or significant capital.
Employee Count	1	Micro-size workforce, suggesting limited operational scale.

Additional Observations:

• No audit required due to small company status, but this also limits external oversight.
• Company has been active since 2021, indicating it is still in early stages of growth or development.
• Industry is retail sale of books and printing services, which can have fluctuating demand and tight margins.

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3. Diagnosis

The financial health of MANAGEMENT & FINANCIAL SOLUTION LIMITED can be likened to a patient with low blood pressure and a weak pulse—technically alive but at risk of collapse if stressed. The company’s cash flow appears "weak and laboured", with current liabilities almost fully matched by current assets, leaving very little buffer. This indicates potential cash flow tightness, with a risk of insolvency if debtors are not collected promptly or if unexpected costs arise.

The reliance on trade debtors (£17,661) to fund current liabilities means the company’s "circulatory system" depends heavily on timely payments from customers. Any delay could cause liquidity distress. Shareholders’ funds are minimal (£110), reflecting either early-stage capital injection or limited profitability retained in the business. The absence of an income statement (not filed as per small company exemption) restricts insight into profitability trends, but the balance sheet suggests limited financial resilience.

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4. Recommendations

To improve financial wellness and stabilize the company's fiscal "heartbeat," the following steps are advised:

a. Strengthen Cash Reserves:

• Improve cash flow management to increase the cash buffer above £2,721. Consider negotiating better payment terms with customers for faster collections or early payment incentives.

b. Debtor Management:

• Implement stricter credit control policies to reduce debtor days and minimize bad debt risk. Regularly review outstanding invoices and follow up promptly.

c. Cost Control and Liabilities:

• Review current liabilities to identify any that can be deferred or renegotiated to ease short-term liquidity pressure.

d. Capital Injection or Profit Retention:

• Consider injecting additional equity capital to build shareholders’ funds, creating a financial cushion against operational shocks.

e. Financial Reporting and Oversight:

• Even though audit exemption applies, consider voluntary internal audits or financial reviews to better understand profit and loss drivers and identify early warning signs.

f. Business Development:

• Since the company operates in niche retail and printing, explore diversification or value-added services to enhance revenue streams and profitability.

g. Monitor Financial Ratios Regularly:

• Track liquidity ratios (current ratio, quick ratio), debtor turnover, and working capital regularly to catch "symptoms" early.

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