MAPPED SPACE LTD

Executive Summary

MAPPED SPACE LTD is currently experiencing significant financial distress, characterised by negative net assets and poor liquidity, indicating a fragile financial condition. Immediate actions focusing on cash flow management, capital injection, and revenue growth are essential to stabilise the company and improve its financial health. Without intervention, the company risks continued financial deterioration.

MAPPED SPACE LTD - Analysis Report

Company Number: SC682181

Analysis Date: 2025-07-29 20:34 UTC

Financial Health Assessment for MAPPED SPACE LTD

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1. Financial Health Score: D

Explanation:
The company shows persistent financial distress with negative net assets and net current liabilities over multiple years. The score reflects a fragile financial state akin to a patient with chronic symptoms that require urgent attention but not yet in terminal condition. The small size and limited turnover restrict financial flexibility, compounding risks.

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2. Key Vital Signs (Core Financial Metrics):

Metric	2023 Value (£)	Interpretation
Turnover	Not disclosed	Minimal reported turnover in prior years (£164 in 2022), indicating very low revenue generation.
Fixed Assets	1,575	Small asset base, suggesting limited physical or capital resources.
Current Assets	157	Extremely low liquid assets, implying poor short-term liquidity.
Current Liabilities	6,619	High short-term obligations relative to current assets, causing working capital deficit.
Net Current Assets (Working Capital)	-6,462	Significant negative working capital, a symptom of liquidity stress.
Net Assets (Equity)	-5,277	Negative shareholders’ funds, indicating insolvency on a balance sheet basis.
Share Capital	1	Nominal share capital, reflecting minimal capital injection.
Average Employees	1	Very small operation scale, limiting operational capacity and diversification.

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3. Diagnosis: Financial Condition Analysis

• Liquidity Distress: The company’s current liabilities far exceed current assets, resulting in a working capital deficit. This is like a patient with poor circulation — the business does not have enough short-term resources (cash or receivables) to meet immediate obligations, indicating cash flow problems.

• Balance Sheet Insolvency: Negative net assets over the last three years indicate that total liabilities exceed total assets. This suggests the company is "underwater," similar to a patient with chronic organ failure requiring intervention.

• Low Revenue Generation: Turnover is minimal, showing the business struggles to generate sales or income. This could be due to market challenges, product issues, or underdeveloped commercial activity, akin to a patient with weak vital signs.

• Small Scale Operation: With only one employee and micro-entity accounting, the company operates on a very small scale, limiting resources and buffer to absorb financial shocks.

• No Audit and Limited Reporting: Accounts prepared under micro-entity regime with no audit reduces transparency and may mask underlying issues.

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4. Recommendations: Prescriptions for Financial Wellness

• Immediate Cash Flow Management: Prioritize improving liquidity by accelerating receivables, negotiating extended payment terms with creditors, or injecting working capital. This is like stabilizing a patient’s vital signs to prevent collapse.

• Capital Injection: Consider fresh equity investment or director loans to restore positive net assets and provide a financial buffer.

• Revenue Growth Strategy: Develop and implement a focused business plan to increase sales and diversify income streams. Market research and product refinement may be necessary to stimulate growth.

• Cost Control: Review and reduce discretionary expenses to preserve cash, akin to reducing metabolic demand in medical care.

• Financial Monitoring: Establish regular financial reporting and cash flow forecasting to detect symptoms early and respond proactively.

• Professional Advice: Engage with an insolvency practitioner or financial advisor to explore restructuring options and avoid insolvency risks.

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