MARYSIOHOLIKI LTD

Executive Summary

Marysioholiki Ltd is currently facing significant financial strain, marked by negative net assets and worsening liquidity, indicating a liquidity crisis and risk of insolvency. Immediate actions including cash flow management, capital injection, and a strategic operational review are critical to restoring financial health and ensuring business continuity.

MARYSIOHOLIKI LTD - Analysis Report

Company Number: 12702807

Analysis Date: 2025-07-29 20:41 UTC

Financial Health Assessment: MARYSIOHOLIKI LTD

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1. Financial Health Score: D

Explanation:
The company shows clear signs of financial distress, primarily due to sustained negative net assets and worsening liquidity. While it remains active and compliant with filings, the "vital signs" indicate significant financial strain that requires urgent attention.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Current Assets	2,771	2,557	Minimal growth in cash and short-term assets
Current Liabilities	24,070	12,398	Sharp increase in short-term debts
Net Current Assets (Working Capital)	-21,299	-9,841	Negative and worsening liquidity ("cash flow distress")
Net Assets (Equity)	-21,599	-10,141	Negative equity, deteriorating financial foundation
Share Capital	1.00	1.00	Minimal capital base
Average Employees	0	0	No workforce, possibly dormant operations

• Working Capital (Net Current Assets) is deeply negative and nearly doubled its deficit year-on-year, highlighting liquidity challenges. This can be likened to a patient with dangerously low blood pressure — the company lacks the "circulating cash" needed to meet short-term obligations.
• Net Assets have plunged from -£10k to almost -£22k, indicating the business’s liabilities exceed its assets by a significant margin, a symptom of "structural weakness."
• No employees suggest minimal operational activity, raising questions about ongoing business viability.

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3. Diagnosis

MARYSIOHOLIKI LTD is exhibiting classic symptoms of financial distress:

• Liquidity Crisis: The company is struggling to cover short-term debts with current assets, risking inability to pay creditors on time.
• Capital Erosion: Negative and worsening net assets suggest accumulated losses or unaddressed financial obligations.
• Operational Dormancy: No reported employees and minimal asset growth point to limited or no active trading.
• Risk of Insolvency: Persistent negative equity and working capital deficits could lead to insolvency if not rectified.

These financial symptoms, if untreated, could lead to a "financial collapse" akin to an untreated illness worsening into a critical condition.

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4. Recommendations

To improve financial health and avoid potential insolvency, the company should consider the following actions:

• Immediate Cash Flow Management:
  Prioritize collecting receivables, renegotiating creditor terms, or securing short-term financing to stabilize liquidity and reduce the working capital deficit.

• Capital Injection:
  Consider equity funding from the majority shareholder or external investors to restore positive net assets and strengthen the balance sheet.

• Cost Rationalization:
  Given zero employees, ensure overheads and fixed costs are minimized, possibly by suspending non-essential activities until financial stability is restored.

• Strategic Review:
  Evaluate the business model viability given the retail mail order SIC code. Consider pivoting or restructuring to generate sustainable revenue streams.

• Professional Advice:
  Engage a financial advisor or turnaround specialist to develop a detailed recovery plan and monitor financial health regularly.

• Compliance & Reporting:
  Maintain timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with Companies House.

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Executive Summary