METAL FRAME TECH LIMITED

Executive Summary

Metal Frame Tech Limited is currently experiencing financial distress characterized by sharply declining net assets and liquidity, signaling weakened operational and financial health. Immediate action focusing on cash flow management and strategic restructuring is essential to restore stability and prevent insolvency risk.

METAL FRAME TECH LIMITED - Analysis Report

Company Number: 13591956

Analysis Date: 2025-07-20 11:26 UTC

Financial Health Assessment for METAL FRAME TECH LIMITED

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1. Financial Health Score: D

Explanation:
The company’s financial metrics reveal a worrying downward trend in net assets and working capital over the past financial year, indicating financial distress. While the business is still solvent, the significant drop in equity and current assets signals potential liquidity issues and operational challenges. The score "D" reflects a fragile condition requiring urgent management attention to restore financial health.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	903	1,474	Declining investment in long-term assets, possibly asset disposal or depreciation.
Current Assets	518	1,959	Substantial decrease, indicating reduced cash or receivables—a symptom of poor liquidity.
Current Liabilities	0	211	Dropped to zero, but note accruals of £750 in 2024 impacting cash flow.
Net Current Assets	518	2,298	Sharp decline, signaling weakening short-term financial health.
Total Assets Less Current Liabilities	1,421	3,772	Significant reduction, reflecting overall asset base shrinkage and/or increased liabilities.
Net Assets (Shareholders’ Funds)	671	3,022	Equity erosion of over 75%, a critical sign of distress.

Additional Observations:

• Accruals and Deferred Income: £750 in 2024, unchanged from previous year, represent obligations that will consume cash in the near term.
• No Employees: No staff employed, indicating possibly a holding or non-operational status.
• Micro Entity Filing: Simplified accounting suggests limited available data but does not excuse declining financial health.
• No Audit: Exemption from audit reduces external scrutiny but increases reliance on management integrity.

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3. Diagnosis: Financial Condition Analysis

METAL FRAME TECH LIMITED displays clear symptoms of financial distress:

• Shrinking Equity Base: The net assets have fallen drastically from £3,022 in 2023 to £671 in 2024, indicating accumulated losses or write-downs. This erosion weakens the company's financial buffer against shocks.
• Dwindling Liquidity: Current assets plummeted by nearly 73%, from £1,959 to £518, signaling a drying up of cash or receivables. Although current liabilities officially show zero, the presence of accruals (£750) indicates future cash outflows not yet classified as liabilities.
• Asset Base Decrease: Fixed assets reduced by nearly 40%, possibly due to disposals or impairments, which may affect operational capacity if assets are critical.
• Operating Activity: The absence of employees and no reported turnover details suggest minimal or no trading activity, consistent with a company possibly in a holding phase or winding down operations.
• Micro Entity Status: The company’s size limits available financial disclosures, but the trend is clear and concerning.

Overall, the company’s "vital signs" resemble a patient with weakened cardiac output (reduced net assets) and poor circulation (low current assets), indicating a risk of insolvency if corrective measures are not taken.

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4. Recommendations: Action Plan to Improve Financial Wellness

1. Cash Flow Management:
   Assess and improve cash inflows urgently. Explore collecting outstanding receivables, reducing unnecessary expenses, or injecting new capital to alleviate liquidity stress.

2. Review Operational Model:
   With no employees and declining asset base, evaluate whether the company’s business activities are sustainable or require restructuring, downsizing, or reorientation.

3. Address Accruals and Deferred Income:
   Plan for the £750 accruals to avoid surprise cash demands. Negotiate payment terms where possible.

4. Capital Injection or Debt Restructuring:
   Consider equity infusion from shareholders or renegotiate debts to improve financial stability.

5. Regular Financial Monitoring:
   Implement monthly financial reviews to detect early symptoms of distress and respond proactively.

6. Seek Professional Advice:
   Engage financial or restructuring advisors to explore turnaround strategies, especially if trading conditions remain weak.

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