MARYLANDSUPREME LTD

Executive Summary

MARYLANDSUPREME LTD currently exhibits financial distress with negative net assets and working capital deficits, indicating liquidity challenges and high leverage. The company’s strong fixed asset base provides some stability, but immediate focus on cash flow improvement, debt restructuring, and capital strengthening is essential to restore financial health and ensure sustainable operations.

MARYLANDSUPREME LTD - Analysis Report

Company Number: 13487346

Analysis Date: 2025-07-29 19:33 UTC

Financial Health Assessment for MARYLANDSUPREME LTD
Financial Year Ended 31 July 2024

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1. Financial Health Score: D

Explanation:
MARYLANDSUPREME LTD exhibits several financial stress signals, notably persistent negative net assets and a substantial imbalance between current liabilities and current assets. Although the company owns significant fixed assets (property valued at £422,000), its liquidity position is weak, with insufficient cash and current assets to cover short-term obligations. This reflects symptoms of financial distress, suggesting the company is currently "ill" in financial terms. However, it is not in immediate liquidation or insolvency, so there is potential for recovery with appropriate interventions.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£422,000	Strong asset base in property, a positive foundation.
Current Assets	£2,725	Very low liquidity; "weak pulse" in short-term resources.
Cash	£2,725	Limited cash on hand—indicative of tight operational cash flow.
Current Liabilities	£113,764	High short-term debts; "symptom of short-term stress."
Net Current Assets	-£111,039	Negative working capital: current liabilities far exceed current assets.
Long-term Liabilities	£318,495	Significant bank loan debt, indicating leveraged capital structure.
Net Assets	-£7,534	Negative equity: liabilities exceed assets—sign of financial distress.
Shareholders' Funds	-£7,634	Negative retained earnings—accumulated losses or capital deficit.

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3. Diagnosis

MARYLANDSUPREME LTD is currently in a financially fragile state. The company’s tangible fixed asset (property) is its main strength, providing a solid albeit illiquid asset base. However, its cash reserves and current assets are insufficient to meet short-term liabilities, indicating poor liquidity and a risk of cash flow crises. Negative net current assets ("working capital deficit") show the company struggles to fund day-to-day operations without relying on external financing.

The sizeable long-term bank loan (£318,495) places additional pressure on the company’s financial health. Negative net assets and shareholders' funds reveal accumulated losses or undercapitalization. This financial "symptom" suggests the company is undercapitalized and may face difficulties raising further funds unless the asset base is monetized or profitability improves.

Despite these challenges, the company is not in liquidation or administration, and there are no signs of overdue filings or regulatory non-compliance, which reflects some operational control.

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4. Recommendations

To improve financial wellness and "restore health," the company should consider the following actions:

1. Enhance Liquidity:

   • Increase cash reserves through improved collections or short-term financing.
   • Review working capital management to reduce current liabilities or increase current assets.

2. Debt Restructuring:

   • Engage with lenders to possibly restructure the bank loan to ease short-term repayment pressures.
   • Explore opportunities to refinance or secure additional equity to reduce leverage.

3. Asset Utilization:

   • Evaluate if the fixed asset (property) can be leveraged, sold, or used as collateral to improve cash flow.
   • Consider monetizing underutilized assets if operationally feasible.

4. Operational Review:

   • Assess the revenue model and cost structure to improve profitability and generate positive retained earnings.
   • Monitor financial KPIs regularly to detect early signs of distress.

5. Capital Injection:

   • Seek additional investment from shareholders or external investors to restore positive equity and buffer cash flow.

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