MESA MULTIMEDIA LIMITED

Executive Summary

MESA MULTIMEDIA LIMITED, a newly incorporated micro-entity in the media production sector, exhibits financial symptoms of distress with negative net assets and working capital, indicating liquidity and capital insufficiencies. Immediate capital injection and a focused revenue strategy are essential to stabilize its financial health and prevent insolvency risk.

MESA MULTIMEDIA LIMITED - Analysis Report

Company Number: 14654234

Analysis Date: 2025-07-29 16:17 UTC

Financial Health Assessment for MESA MULTIMEDIA LIMITED

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1. Financial Health Score: D

Explanation:
MESA MULTIMEDIA LIMITED shows early symptoms of financial distress primarily due to its negative net current assets and net assets position. As a micro-entity incorporated recently in 2023, it is still in its infancy, but the current balance sheet reveals that liabilities exceed assets, indicating an unhealthy financial state. This score reflects the need for urgent remedial measures to strengthen liquidity and capital base.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	4,282	Very low level of liquid assets
Prepayments and Accrued Income	27,960	Significant prepaid expenses or accrued income
Current Liabilities	34,160	Short-term debts exceeding liquid assets
Net Current Assets	-1,918	Negative working capital, indicating liquidity strain
Net Assets	-1,918	Company’s total assets less liabilities is negative, indicating insolvency on a balance sheet basis
Shareholders’ Funds	-1,918	Negative equity, showing accumulated losses or insufficient capital injection

Interpretation:

• Negative net current assets is a key symptom of liquidity stress, akin to a patient whose vital signs indicate insufficient blood flow to organs—here, the company lacks enough short-term assets to cover its immediate obligations.
• Negative net assets suggest insolvency in accounting terms; the company owes more than it owns, akin to an individual with debts surpassing their total wealth.
• The substantial prepayments and accrued income (£27,960) may indicate advance payments or deferred income, which could provide some buffer, but not enough to offset liabilities.
• The company employed zero staff on average during the period, indicating no operational workforce, which may limit revenue generation.

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3. Diagnosis

MESA MULTIMEDIA LIMITED is a very young micro-entity operating in the specialized sector of motion picture and video post-production. Despite the promising industry, the company’s financial "vital signs" reveal early-stage distress:

• Liquidity Crisis: Negative working capital indicates a struggle to meet short-term obligations, which is a red flag for continuing operations without additional cash inflows or restructuring.
• Capital Deficiency: Negative shareholders’ funds suggests the company either started with insufficient capital or has already incurred losses eroding equity.
• Operational Dormancy: With zero employees and no income statement filed, the company likely has limited trading activity or revenue generation in its first year.
• Risk of Insolvency: Without intervention, the current financial state is unsustainable and could lead to insolvency proceedings.

The symptoms suggest the company is in a fragile state, akin to a patient in critical condition requiring immediate treatment to avoid collapse.

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4. Recommendations

To improve MESA MULTIMEDIA LIMITED’s financial wellness and stabilize its condition, the following steps are critical:

• Immediate Cash Injection: The director or shareholders should consider an equity infusion or loan to restore positive working capital and net assets. This will act like administering a vital fluid boost to stabilize the company’s “circulatory system”.
• Cost Control: Review and minimize overheads and prepayments to preserve cash, focusing on essential expenditures only to conserve liquidity.
• Revenue Generation Plan: Develop and execute a clear business strategy to generate revenue, such as securing contracts or partnerships in the media production sector. This is analogous to prescribing a nutrition plan to restore strength.
• Financial Monitoring: Implement robust cash flow forecasting and management to detect early warning signs of liquidity shortages in future periods.
• Consider Professional Advice: Engage with financial advisors or insolvency practitioners early to explore restructuring options if cash flow projections do not improve.
• Compliance and Reporting: Ensure timely filing of accounts and returns to avoid penalties that could exacerbate financial strain.

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