MATSAN LIMITED

Executive Summary

MATSAN LIMITED shows strong financial health with improving liquidity and net assets, reflecting stable and growing business operations as a micro-entity consultancy. The company's balance sheet is robust, with low liabilities and positive working capital, indicating a healthy cash flow and no signs of financial distress. To further enhance resilience and support growth, the company should focus on diversifying income, maintaining cash reserves, and planning for business continuity.

MATSAN LIMITED - Analysis Report

Company Number: 13510461

Analysis Date: 2025-07-29 14:35 UTC

Financial Health Assessment of MATSAN LIMITED (as of 31 July 2024)

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1. Financial Health Score: B

Explanation:
MATSAN LIMITED demonstrates a solid and improving financial position typical of a young micro-entity company. Key indicators such as net current assets and net assets have shown consistent growth year-on-year, indicating healthy liquidity and capital structure. The company benefits from low liabilities relative to current assets, reflecting a "healthy cash flow" symptom. However, being a micro-entity with a single director and minimal employees, the scale and scope limit resilience against market or operational shocks, preventing an ‘A’ grade.

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2. Key Vital Signs

Metric	2024	2023	Interpretation
Current Assets	£18,006	£10,273	Strong year-on-year increase indicates improving liquidity and ability to cover short-term obligations.
Current Liabilities	£1,714	£1,396	Low and stable short-term debt level reduces risk of cash flow stress.
Net Current Assets (Working Capital)	£16,292	£8,877	Positive and growing working capital signals good operational health and ability to meet immediate financial commitments.
Net Assets (Equity)	£14,368	£7,061	Growth in net assets reflects accumulated retained earnings and capital infusion, strengthening financial stability.
Shareholders' Funds	£14,368	£7,061	Mirrors net assets, indicating equity base is solid and growing.
Employee Count	1	1	Minimal staff; low operational complexity but also limited human capital.

• Liquidity: The company’s current ratio (current assets/current liabilities) is approximately 10.5x in 2024, which is excellent and indicates no immediate liquidity concerns.
• Leverage: Company carries very low liabilities relative to assets, indicating low financial risk.
• Profitability: While profit and loss data are not explicitly provided, the increase in net assets suggests the company is profitable or has had capital injections.
• Operational Scale: Single employee (director) indicates a small scale operation, which may limit growth potential but also keeps overheads low.

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3. Diagnosis: Financial Health and Business Condition

MATSAN LIMITED is exhibiting signs of "robust cardiovascular health" in financial terms, with increasing working capital and net assets, indicating strong liquidity and capital structure. The company's "healthy cash flow" allows it to comfortably meet short-term liabilities and fund ongoing operations without stress.

The single director/employee structure and micro-entity status suggest a business in early growth or niche consultancy phase, which is common for management consultancy activities. The steady asset growth indicates sound "metabolism" — effective resource use and profitability or capital funding.

No signs of financial distress such as overdue filings, excessive debt, or negative net assets are present. The clean balance sheet and positive trends reflect good "vital signs."

However, the small scale and concentration of control in one individual pose potential risks in terms of succession, business continuity, and limited operational bandwidth.

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4. Recommendations: Actions to Enhance Financial Wellness

• Diversify Revenue Streams: To improve resilience, explore expanding client base or service offerings beyond current consultancy scope.
• Build Cash Reserves: Maintain or grow cash reserves to cushion against unexpected expenses or downturns.
• Formalize Financial Planning: Even with a single employee, implement regular budgeting and cash flow forecasting to anticipate financial needs and opportunities.
• Consider Succession Planning: Given the sole director setup, plan for continuity in case of incapacity or exit to safeguard business longevity.
• Monitor Overheads: Keep a close eye on operational costs to ensure expenses grow in line with revenues, preserving profitability.
• Prepare for Scale-up: If growth is a goal, consider hiring additional staff or outsourcing to spread workload and increase capacity.
• Maintain Compliance: Continue timely filings and adherence to micro-entity reporting standards to avoid penalties and maintain good standing.

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