MAPO SUPPORTING SERVICES LIMITED

Executive Summary

MAPO SUPPORTING SERVICES LIMITED is currently exhibiting warning signs of financial distress, with negative working capital and net assets indicating liquidity and solvency challenges. While the company remains compliant and active, urgent measures to improve cash flow, control expenses, and strengthen equity are recommended to avoid further deterioration and enable recovery.

MAPO SUPPORTING SERVICES LIMITED - Analysis Report

Company Number: 13053885

Analysis Date: 2025-07-20 12:14 UTC

Financial Health Assessment for MAPO SUPPORTING SERVICES LIMITED

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1. Financial Health Score: D

Explanation:
The company's financial health is currently weak. The micro-entity is showing net current liabilities and negative net assets in the latest financial year (2023), indicating symptoms of financial distress. Although the company is still active, its working capital position has deteriorated, raising concerns about liquidity and solvency.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Current Assets	279	481	Shrinking liquid resources
Current Liabilities	420	480	Slightly reduced but still high
Net Current Assets (Working Capital)	-141	1	Negative working capital signals liquidity issues
Total Net Assets	-141	1	Negative equity, indicating insolvency risk
Shareholders Funds	-141	1	Decline from positive to negative equity

• Working Capital: The net current assets (current assets minus current liabilities) have slipped from a marginally positive £1 to a negative £141. This indicates the company currently owes more in short-term liabilities than it holds in short-term assets, a red flag for cash flow health.
• Net Assets and Equity: The shift from positive to negative net assets is a classic symptom of financial distress. It signals that the company's liabilities exceed its assets.
• Share Capital: Minimal at £2.00, typical for micro-entities, but insufficient to buffer financial shocks.
• Employee Count: 1 employee consistently, suggesting a very small operation with limited scale.

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3. Diagnosis

Underlying Business Health:

• The company operates in sectors including residential nursing care, building cleaning, and private security. These industries often require consistent cash flow and working capital to cover operational costs such as wages, supplies, and regulatory compliance.
• The negative working capital and net asset position in 2023 suggest the company is experiencing cash flow strain or accumulating debts.
• The deterioration over the last year shows the company may be struggling to generate sufficient revenue or manage expenses effectively.
• The single director and employee structure indicates limited managerial and operational capacity to address financial challenges.
• No indication of overdue filings or penalties, which is a positive sign of compliance discipline despite financial difficulties.

Symptoms of Distress:

• Negative net current assets imply potential difficulties meeting short-term obligations—supplier payments, salaries, or taxes.
• Negative shareholders' funds suggest the company has eroded its financial cushion, increasing solvency risk.
• The absence of fixed assets or capital investment data may indicate limited asset base to leverage for financing or sale.

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4. Prognosis

Without intervention, continued negative working capital and declining equity could push the company toward insolvency. However, the company remains active and compliant, which provides a platform for financial recovery if corrective measures are taken promptly.

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5. Recommendations

• Cash Flow Management:
  Implement rigorous cash flow forecasting and control measures to ensure liabilities are met on time. Prioritize collections of receivables and delay non-essential expenditures.

• Cost Control and Expense Review:
  Analyze all operational costs and reduce or renegotiate where possible to improve cash conservation.

• Capital Injection:
  Consider equity injection or short-term financing to restore positive net assets and working capital. This could come from shareholders, directors, or external investors.

• Revenue Enhancement:
  Explore opportunities to increase sales or diversify income streams within the company's industry segments.

• Financial Monitoring:
  Establish regular financial review cycles to monitor liquidity ratios and net asset position, ensuring early detection of financial distress symptoms.

• Professional Advice:
  Engage with financial advisors or accountants experienced in turnarounds for micro-entities to develop a tailored recovery plan.

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Medical Analogy Summary

MAPO SUPPORTING SERVICES LIMITED shows clear symptoms of financial distress akin to a patient with declining vital signs: its "working capital pulse" is weak and "equity immunity" has diminished. Immediate "treatment" in the form of cash flow management, cost control, and potential capital "transfusion" is necessary to restore financial health and prevent progression to insolvency.

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