MD PROJECT PROGRESSION LIMITED

Executive Summary

MD PROJECT PROGRESSION LIMITED currently exhibits critical financial distress, characterized by negative net assets and working capital, signaling insolvency risk despite being a newly formed micro-entity. Immediate capital injection and stringent cost management are essential to stabilize liquidity and enable business development. Without corrective action, the company’s financial health prognosis is poor, but early-stage challenges may be overcome with focused financial and operational improvements.

MD PROJECT PROGRESSION LIMITED - Analysis Report

Company Number: 14718233

Analysis Date: 2025-07-29 19:53 UTC

Financial Health Assessment: MD PROJECT PROGRESSION LIMITED

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1. Financial Health Score: F

Explanation:
The company shows a deeply concerning financial position with net current liabilities exceeding current assets by £3,866. This negative net asset position indicates insolvency on a balance sheet basis, which is a critical red flag for financial distress. Given the company’s early stage (incorporated less than 2 years ago) and micro-entity status, the absence of fixed assets and minimal current assets alongside significant short-term liabilities points to severe liquidity and solvency risks.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£0	No long-term assets to support operations or borrowing.
Current Assets	£8	Extremely low liquid assets; almost no cash or receivables.
Current Liabilities	£3,874	Short-term debts are substantial relative to assets.
Net Current Assets (Working Capital)	-£3,866	Negative working capital indicates inability to cover short-term obligations.
Net Assets (Shareholders' Funds)	-£3,866	Negative equity signals insolvency; liabilities exceed assets.
Number of Employees	1	Very small workforce consistent with micro-entity status.

Vital Signs Analysis:
The company’s financial “pulse” shows symptoms of distress: a lack of assets and a liability burden that outstrips its resources, akin to a patient with very low blood pressure and organ function — the business lacks the financial “oxygen” (cash/assets) to sustain itself.

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3. Diagnosis

Underlying Business Health:

• The company is in its infancy (incorporated March 2023) and has yet to establish a healthy financial base.
• The negative net current assets and net asset position reveal acute liquidity problems; it cannot cover short-term debts with available liquid assets.
• The total absence of fixed assets and minimal current assets suggests no capital investment or working capital buildup.
• This financial “symptom” strongly suggests the business is either in pre-operational stages or experiencing early financial stress, possibly incurring start-up costs without corresponding revenues.
• With only one employee (likely the director) and a single controlling shareholder, the company’s governance and operational scale are very limited.
• The company is not overdue on filings, indicating compliance discipline, which is a positive sign.

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4. Prognosis and Recommendations

Prognosis:
If the current financial condition persists without intervention, the company risks insolvency and potential liquidation. However, as a newly formed micro-entity, it may still be in a development phase where initial losses and negative working capital are common. The prognosis depends heavily on the company’s ability to rapidly generate revenue or secure funding.

Recommendations:

• Inject Capital: Immediate cash infusion from shareholders or external investors is critical to restore positive working capital and avoid creditor pressure.
• Cost Control: Assess and minimize operational expenses to reduce current liabilities.
• Revenue Generation: Accelerate business development efforts to start generating sustainable income streams.
• Financial Monitoring: Implement regular cash flow forecasting and budget controls to anticipate liquidity needs.
• Seek Professional Advice: Engage with financial advisors or insolvency practitioners early to explore restructuring or turnaround strategies if cash flow remains constrained.
• Consider Funding Options: Explore short-term credit facilities or grants targeted at start-ups to bridge liquidity gaps.

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Executive Summary