Company Number: 13644747

Analysis Date: 2025-07-20 14:31 UTC

Financial Health Assessment for MEMISES LTD

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1. Financial Health Score: D

Explanation:
The company's financial metrics reveal persistent and worsening liquidity challenges, with net current liabilities growing significantly and total net assets turning deeply negative. These symptoms indicate financial distress despite the business being active and filing timely accounts. The score "D" reflects a need for urgent financial intervention to restore health.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	6,649	Declining asset base, possible disposals or impairments.
Current Assets	135	Extremely low liquid assets available to meet short-term obligations.
Current Liabilities	13,300	High short-term debts increasing year-on-year.
Net Current Assets (Working Capital)	-13,165	Negative working capital; indicates liquidity stress.
Total Assets less Current Liabilities	-6,516	Negative value; company owes more than it owns in short term.
Creditors due after one year	1,533	Additional longer-term liabilities present.
Net Assets (Shareholders' Funds)	-8,049	Negative net worth; liabilities exceed assets.

Trend Analysis:

• Net assets have declined from a slightly positive £7,188 in 2021 to a negative £8,049 in 2024, indicating erosion of equity.
• Working capital has worsened from positive £1,082 in 2021 to a negative £13,165 in 2024 — a critical symptom of poor liquidity.
• Fixed assets have decreased by approximately 37% from 2021 to 2024, possibly due to asset sales or write-downs.
• Current liabilities have grown by nearly six times from 2021, signaling increased short-term obligations.

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3. Diagnosis

MEMISES LTD exhibits classic symptoms of financial distress akin to a patient whose vital signs (liquidity and solvency) are deteriorating:

• Liquidity Crisis: The company has insufficient current assets (cash, receivables) to cover its current liabilities, resulting in negative working capital. This is a "shortness of breath" symptom in financial terms — the business may struggle to pay day-to-day expenses and suppliers promptly.

• Solvency Erosion: Negative net assets imply the company owes more than it owns overall, which compromises its "immune system"—its ability to withstand financial shocks or downturns.

• Declining Fixed Assets: The reduction in fixed assets might indicate the company is selling off long-term resources to meet obligations, potentially sacrificing future earning capacity.

• Stable Employee Count: With only 1 employee on average, the company operates a very lean structure, which may limit operational flexibility but also indicates limited scale.

• Industry Context: Operating in "Physical well-being activities" (SIC 96040), the company is in a consumer service sector possibly impacted by market competition or external factors affecting revenue.

Overall, the company is in a fragile financial state, requiring immediate attention to avoid progression towards insolvency.

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4. Recommendations

To improve financial wellness and restore "health," MEMISES LTD should consider the following steps:

1. Improve Liquidity:

   • Increase cash reserves through better receivables management or additional funding.
   • Negotiate extended payment terms with creditors to reduce immediate cash outflows.
   • Explore short-term financing options cautiously to bridge liquidity gaps.

2. Review Cost Structure:

   • Analyze and reduce discretionary expenses.
   • Consider restructuring operational costs to improve margins.

3. Asset Management:

   • Evaluate fixed assets for potential recovery or more efficient use.
   • Avoid further disposals that may undermine operational capacity.

4. Strategic Financial Planning:

   • Prepare a detailed cash flow forecast to anticipate funding needs.
   • Engage with financial advisors or turnaround specialists to develop a recovery plan.

5. Stakeholder Communication:

   • Maintain transparent communication with shareholders and creditors.
   • Consider equity injections if feasible, given the negative net worth.

6. Explore Revenue Enhancement:

   • Assess market positioning and service offerings for opportunities to boost income.
   • Leverage the director's expertise (Therapist) to differentiate services.

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