MANCHESTER TRIANGLE LTD

Executive Summary

Manchester Triangle Ltd is financially dormant, showing negative net assets and no trading activity, which signals a weak financial state. Compliance with filings is positive, but the company needs strategic direction and capital infusion to restore financial health and operational viability.

MANCHESTER TRIANGLE LTD - Analysis Report

Company Number: 13943033

Analysis Date: 2025-07-20 15:10 UTC

Financial Health Assessment: MANCHESTER TRIANGLE LTD

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1. Financial Health Score: D

Explanation:
The company is currently dormant with no trading activity, reflected by stagnant and negative net asset values over three years. Negative net assets and shareholders' funds indicate a balance sheet weakness resembling a "symptom of financial distress." The absence of revenue, employees, or operational activity signals that the company is inactive, limiting positive financial vitality. While not in immediate danger of insolvency (no overdue filings or liquidation), the company’s financial condition is poor and requires attention to restore financial health.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Turnover & Trading Activity	Dormant (no turnover)	Indicates no business operations or revenue generation.
Net Current Assets	-750	Negative working capital; unable to cover current liabilities with current assets.
Net Assets / Shareholders Funds	-650	Negative equity signals liabilities exceed assets; "balance sheet weakness."
Current Liabilities	750	Small short-term debts outstanding, with no assets to offset.
Employees	0	No staff; dormant status confirmed.
Filing Status	Up to date	Compliance with statutory filing deadlines is positive.

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3. Diagnosis: What the Financial Data Reveals

• Dormant Status: The company has not engaged in trading activities during the assessed periods and is classified as dormant. This means the company is essentially "asleep" financially, with no income or expenses apart from minimal administrative costs.

• Negative Net Assets: The company shows a persistent negative net asset position (-£650), indicating that liabilities slightly exceed total assets. This is akin to a patient with low blood pressure—there is not enough "capital flow" to maintain healthy financial function.

• No Operational Activity: Zero employees and no turnover confirm that the business is not currently generating income or incurring operating costs. This could be a deliberate decision (e.g., holding company status) or a sign of stalled growth.

• Balance Sheet Weakness: Negative net current assets and net assets suggest the company lacks liquidity and solvency buffers to support future operations without additional capital injection.

• Compliance: On the positive side, the company is compliant with filing requirements, showing responsible financial administration despite inactivity.

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4. Recommendations: Steps to Improve Financial Wellness

1. Evaluate Purpose and Strategy: Determine if the dormant status aligns with strategic goals. If the company intends to trade, plan a clear path to activate operations and generate revenue.

2. Capital Injection: Address the negative net asset position by injecting fresh equity or converting loans to equity to improve solvency and restore financial "vitality."

3. Cost Management: If reactivation is planned, prepare for initial operating costs and ensure sufficient working capital to cover liabilities and short-term expenses.

4. Financial Monitoring: Establish regular financial reporting and cash flow forecasting to detect early symptoms of distress and maintain healthy financial "vital signs."

5. Consider Restructuring or Closure: If the dormant status is indefinite, assess whether the company should be formally closed to avoid ongoing administrative costs and potential liabilities.

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Executive Summary

MANCHESTER TRIANGLE LTD is currently dormant with no trading activity, reflected in negative net assets and working capital, indicating a weak financial condition. While compliant with filings, the company shows symptoms of financial distress with no operational vitality. To improve financial health, the company should clarify its strategic intent, consider capital injections, and monitor financial metrics closely to avoid further deterioration.