MEMOBLOX LTD

Executive Summary

MEMOBLOX LTD is a newly incorporated micro-entity showing early signs of financial distress, including negative working capital and shareholders’ funds. Immediate focus on liquidity improvement and capital strengthening is critical to stabilize the business and avoid insolvency risks. With careful financial management and strategic funding, the company can recover to a healthier financial position.

MEMOBLOX LTD - Analysis Report

Company Number: 14738330

Analysis Date: 2025-07-29 13:07 UTC

Financial Health Assessment Report for MEMOBLOX LTD (as at 31 March 2024)

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1. Financial Health Score: D

Explanation:
MEMOBLOX LTD exhibits several critical signs of financial distress, primarily characterized by negative net current assets, negative net assets, and a negative shareholders’ fund position. Given that this is a micro-entity in its first financial year, these "symptoms" reflect startup challenges but also significant liquidity and solvency risks. The score "D" indicates poor financial health requiring urgent attention to avoid deeper financial complications.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	95,113	Reasonable investment in long-term assets for a new company.
Current Assets	59,770	Limited short-term resources; relatively low cash/debtors.
Current Liabilities	199,168	High short-term obligations compared to current assets.
Net Current Assets	-139,398	Negative working capital – "symptom of liquidity strain".
Total Assets Less Current Liabilities	-44,285	Overall asset base insufficient to cover short-term debts.
Net Assets (Shareholders’ Funds)	-45,535	Negative equity reflects accumulated losses or funding gaps.

Interpretation of Vital Signs:

• Negative Net Current Assets: The company’s "cash flow vital signs" indicate it cannot cover its immediate debts with short-term assets. This is a red flag of poor liquidity and potential cash flow distress, impairing day-to-day operations.
• Negative Net Assets/Equity: The company’s "financial backbone" is weakened, indicating liabilities exceed assets. This suggests the business is undercapitalized or has incurred losses that have eroded shareholder value.
• Fixed Assets vs Current Assets: The fixed assets are relatively high compared to current assets, possibly indicating investment in equipment or property before securing sufficient operational liquidity.

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3. Diagnosis

Underlying Financial Health:
MEMOBLOX LTD is in its infancy (incorporated 2023), operating as a micro-entity in specialized retail (SIC 47789). The financial "symptoms"—notably the negative working capital and negative equity—point to an early-stage business experiencing common startup challenges such as upfront capital expenditure, delayed revenues, or high initial liabilities (possibly supplier credit or loans). The lack of equity buffer highlights risk of insolvency if these trends continue.

The company has no overdue filings and appears compliant, which is a positive administrative sign. The single director and majority shareholder control by Mr. Ariel Chaim Zauer suggests centralized decision-making, which can be agile but also represents concentrated risk if financial issues worsen.

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4. Recommendations

Immediate Actions to Improve Financial Wellness:

1. Improve Liquidity Management:

   • Increase short-term assets by accelerating receivable collections or injecting working capital.
   • Negotiate extended payment terms with creditors to ease immediate cash outflows.

2. Capital Injection:

   • Consider equity fundraising or shareholder loans to restore positive net assets and strengthen the balance sheet. This "financial lifeline" is crucial for survival and growth.

3. Cost Control and Revenue Growth:

   • Review operating expenses to reduce burn rate without harming core capabilities.
   • Accelerate sales activities or diversify revenue streams to generate a "healthier cash flow pulse."

4. Financial Monitoring:

   • Implement regular financial health checks (monthly cash flow forecasts, working capital analysis).
   • Engage with a financial advisor or accountant to establish early warning systems for liquidity risks.

5. Strategic Planning:

   • Develop a business plan focusing on sustainability and growth milestones aligned with financial capacity.
   • Explore grants or support schemes available for micro-entities in retail.

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Executive Summary