MANESTY MAKES LIMITED

Executive Summary

Manesty Makes Limited exhibits early startup financial stress with negative working capital and equity, reflecting typical initial losses and limited liquidity. Immediate focus on capital injection and cash flow management is essential to stabilize its financial position and support future growth.

MANESTY MAKES LIMITED - Analysis Report

Company Number: 15436094

Analysis Date: 2025-07-29 12:03 UTC

Financial Health Assessment of Manesty Makes Limited

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1. Financial Health Score: D

• Explanation: The company shows early-stage financial distress signs with negative net current assets and shareholders’ funds shortly after incorporation. This grade reflects the fragile financial footing typical of a new micro-entity that has yet to build operational cash flow and equity buffer.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	228	Very low cash and short-term assets; minimal liquidity
Current Liabilities	573	Short-term debts exceed available liquid assets
Net Current Assets	-345	Negative working capital indicates cash flow pressure
Net Assets (Equity)	-345	Negative equity signals more liabilities than assets
Shareholders’ Funds	-345	Capital invested less financial obligations is negative

• The negative net current assets act as a symptom of distress, showing the company may struggle to meet short-term obligations without new inflows or capital injections.
• A negative equity position is a critical vital sign illustrating that liabilities exceed assets, typical for a newly formed company still investing in initial setup costs or having startup losses.
• The company is a micro-entity, which often have lean financial statements but this early negative position is a warning sign.

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3. Diagnosis

Manesty Makes Limited is in the very nascent stage of its business lifecycle, having been incorporated in January 2024 and reporting its first set of accounts at December 2024. The financials resemble a patient in the initial phase of treatment: the company is currently “underweight” financially with negative net assets and net current assets. This indicates a liquidity strain or startup expenses exceeding initial funding.

The symptoms—negative working capital and shareholders funds—suggest the company is relying heavily on external financing or shareholder loans that are not yet formalized as equity, or it has incurred operating losses in its first year.

Despite these concerns, the company is up to date with filings and has no overdue accounts or returns, which is encouraging from a governance standpoint. The sole director and controlling shareholder, Mrs. Abbigayle Patricia Fawcett, holds full control, providing clear management accountability but also concentration risk.

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4. Recommendations

To improve the financial wellness and strengthen the company’s “financial pulse,” consider the following actions:

• Capital Injection: Infuse additional equity or formal shareholder loans to restore positive net assets and improve working capital. This will provide a healthier balance sheet and reduce liquidity risk.
• Cash Flow Management: Closely monitor cash inflows and outflows to avoid running out of liquid resources. Implement budgeting and forecasting to anticipate shortfalls.
• Cost Control: Minimize discretionary expenses until the company generates positive operating cash flow.
• Revenue Growth: Accelerate sales activities and diversify revenue streams within the retail SIC code 47990 to build a stable income base.
• Governance: Maintain compliance discipline with timely filings and transparent reporting to support investor and creditor confidence.
• Consider External Advice: Engage a financial advisor or mentor to guide through the startup phase, focusing on financial strategy and risk management.

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Summary

Manesty Makes Limited is a newly incorporated micro private company facing early financial challenges typical of startups, marked by negative net current assets and shareholders’ funds. While this presents liquidity and solvency concerns, proactive capital support and disciplined cash management can restore financial health and support sustainable growth.