MATBO SOLUTIONS LIMITED

Executive Summary

MATBO SOLUTIONS LIMITED exhibits worrying signs of financial stress, with a dramatic decline in liquidity and net assets over the past year. While still active and compliant, the company must urgently focus on cash flow management and cost control to avoid deeper distress. Proactive financial oversight and possible funding support are recommended to restore financial health and operational stability.

MATBO SOLUTIONS LIMITED - Analysis Report

Company Number: 14306046

Analysis Date: 2025-07-20 16:57 UTC

Financial Health Assessment for MATBO SOLUTIONS LIMITED

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress with a severely diminished net asset base and tight working capital in the latest year. Although it remains active and compliant on filings, the marked decline in net current assets and shareholders' funds from £4,549 in 2023 to just £144 in 2024 reflects a fragile liquidity position, akin to a patient whose vital signs have worsened significantly over a short period.

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2. Key Vital Signs: Critical Metrics & Interpretation

Metric	2024 Value	2023 Value	Interpretation
Current Assets	£28,303	£30,616	Slight reduction - healthy cash reserves shrinking
Current Liabilities	£28,159	£26,067	Increase in short-term obligations - growing pressure on liquidity
Net Current Assets (Working Capital)	£144	£4,549	Drastic drop - "symptom of distress" in ability to cover short-term debts
Net Assets (Shareholders’ Funds)	£144	£4,549	Sharply reduced equity base - concern over financial stability
Employees	2	2	Stable workforce size - no immediate operational downsizing

• Working Capital is the immediate measure of liquidity — with only £144 net current assets, the business is barely able to meet its short-term liabilities.
• Net Assets represent the company's overall financial cushion. The collapse from £4,549 to £144 suggests the company has possibly absorbed losses or drawn down reserves.
• The company is a micro-entity under UK accounting standards, so reporting is simplified; however, the absence of a profit and loss account limits visibility into profitability trends.

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3. Diagnosis: What the Financial Data Reveals About Business Health

The financial "symptoms" indicate MATBO SOLUTIONS LIMITED’s liquidity has deteriorated sharply over the last year. The company's "vital signs" show it is operating with a very thin buffer to cover its immediate obligations. While it is not yet insolvent, the near-zero working capital suggests a "precarious condition" that could lead to cash flow difficulties if current liabilities increase or if cash inflows weaken.

The company's small size and micro-entity reporting framework limit detailed financial disclosures, so it's difficult to pinpoint exact causes. However, the significant drop in net assets hints at possible operational losses, increased expenses, or drawings by shareholders/directors.

The stable number of employees is a positive sign, showing no immediate downsizing, but this could add strain if revenues do not improve.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Enhance Cash Flow Management: Monitor and accelerate receivables collection, negotiate longer payment terms with suppliers, and reduce unnecessary expenses to build a healthier cash reserve.
• Review Pricing and Cost Structure: Conduct a detailed review of service pricing and operational costs to stop further erosion of profitability.
• Seek Additional Funding: Consider injecting additional equity or arranging short-term financing to strengthen working capital and provide a financial cushion.
• Regular Financial Monitoring: Implement regular financial reviews with key performance indicators (KPIs) to detect signs of distress early and take corrective action swiftly.
• Engage Professional Advice: Consider consulting financial advisors or business turnaround specialists to explore strategic options for stabilizing and growing the business.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid regulatory penalties that could exacerbate financial strain.

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