MEM SPORTS CONSULTANCY LIMITED

Executive Summary

MEM SPORTS CONSULTANCY LIMITED is a newly established micro-entity showing positive but minimal profitability and a strong liquidity position relative to its size. While there are no signs of financial distress, the low turnover and limited assets indicate an embryonic business with significant growth potential but vulnerability. Focused efforts on revenue growth and cost management will be crucial to building sustainable financial health.

MEM SPORTS CONSULTANCY LIMITED - Analysis Report

Company Number: 14640062

Analysis Date: 2025-07-20 15:41 UTC

Financial Health Assessment for MEM SPORTS CONSULTANCY LIMITED

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1. Financial Health Score: D

Explanation:
The company is in a very nascent stage, having been incorporated in February 2023 and reporting its first financial year ending February 2024. The financials show extremely low turnover and modest net assets, indicating an embryonic business with limited trading activity. While there are no immediate signs of distress such as liabilities or losses, the scale and scope of operations are minimal, reflecting a fragile financial condition common in startups. The score reflects a company that is stable for now but requires careful nurturing and growth to avoid financial vulnerability.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Turnover	5,193	Very low revenue, typical for a startup in early phase.
Cost of Materials	4,385	High proportion relative to turnover; tight margins.
Profit for Period	654	Small profit, positive sign but limited cushion.
Fixed Assets	0	No long-term investments/assets; all operations likely service-based and lightweight.
Current Assets	654	Cash or receivables available; very limited working capital.
Current Liabilities	0	No short-term debts; positive liquidity signal.
Net Current Assets	654	Positive working capital, indicating ability to cover short-term obligations.
Shareholders' Funds	654	Small equity base reflecting initial investment and retained profit.
Employees	0	No staff employed, possibly owner-operated.

Interpretation:

• The company exhibits a "healthy cash flow" symptom by having no current liabilities and a positive net current asset position, albeit on a very small scale.
• The very low turnover and profit margins suggest "symptoms of limited market traction" or early-stage business development.
• Absence of fixed assets and employees indicates a lean operation, likely consulting services with minimal overhead.
• No debts or creditors imply no immediate financial distress.

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3. Diagnosis

MEM SPORTS CONSULTANCY LIMITED is at an embryonic stage of its lifecycle, showing early "vital signs" of survival but limited growth. The business is operating with minimal scale, very modest revenue, and positive but small profitability. The absence of liabilities is a positive sign, indicating no external financial pressures currently. However, the low turnover and minimal working capital reflect a business that has not yet established a robust operational or financial foundation.

This "financial pulse" suggests a company that is stable but vulnerable. The lack of employees and fixed assets indicates a possibly owner-operated consultancy model, which reduces overhead but also limits capacity for expansion. The financial "symptoms" do not indicate distress, but the business must build on this foundation to avoid stagnation or cash flow challenges in the future.

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4. Recommendations

To improve the financial wellness and build a stronger foundation, the company should consider:

• Boost Revenue Generation: Develop marketing and business development strategies to increase client base and turnover beyond the initial low scale.
• Manage Cost of Materials: Review and control direct costs to improve gross margins and profitability.
• Build Working Capital Reserves: Aim to increase cash or liquid assets to provide a buffer against unexpected expenses or seasonal variations.
• Explore Asset Investment: As the business grows, consider investing in tools, software, or equipment that can improve service delivery and efficiency.
• Prepare for Staffing: Evaluate the need for hiring or subcontracting to expand capacity and service offerings, ensuring this is aligned with revenue growth.
• Regular Financial Monitoring: Establish periodic financial reviews to detect early signs of cash flow stress or profit erosion.
• Compliance and Reporting: Continue timely filing of accounts and confirmation statements to maintain good standing and avoid penalties.

These steps will help the company transition from a fragile startup phase to a more resilient and scalable business.

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