METISX CONSULTING LTD

Executive Summary

MetisX Consulting Ltd shows a stable yet fragile financial condition with a negative working capital indicating liquidity pressure, but positive net assets reflecting solvency. As a young company, it needs to focus on improving cash flow management and working capital to strengthen its financial resilience. With prudent financial controls and strategic planning, its outlook can improve from vulnerable to healthy.

METISX CONSULTING LTD - Analysis Report

Company Number: 15126725

Analysis Date: 2025-07-29 12:08 UTC

Financial Health Assessment of METISX CONSULTING LTD

---

1. Financial Health Score: C

Explanation:
METISX CONSULTING LTD is a very young private limited company (incorporated 2023) with its first set of filed accounts for a 13-month period ending September 2024. The company shows modest net assets (£13,006) but exhibits a working capital deficit (negative net current assets of £13,040). This reflects a liquidity strain — akin to a patient with borderline vital signs. The business is not generating large cash reserves yet, and current liabilities exceed current assets, primarily due to significant director current account balances.

Given these early-stage figures and the liquidity pressure, the company’s financial health is stable but fragile, meriting a middle-tier rating of C. The company is not in distress but shows symptoms needing monitoring and potential intervention to improve liquidity and cash flow stability.

---

2. Key Vital Signs

Vital Sign	Value	Interpretation
Net Current Assets	-£13,040	Negative — indicates short-term liquidity stress; current liabilities exceed current assets. This is a symptom of cash flow tightness.
Net Assets	£13,006	Positive equity; company has a small cushion of net assets, indicating solvency on a balance sheet basis.
Cash at Bank	£11,821	Cash available is less than current liabilities, signifying limited immediate liquidity.
Debtors	£7,771	Amount owed to the company; reflects potential short-term cash inflows if collected promptly.
Creditors (Current Liabilities)	£32,932	High current liabilities, driven largely by director’s current account (£30,953). This represents amounts owed to the director, possibly loans or expenses advanced.
Share Capital	£100	Minimal initial investment, typical for a startup.
Provisions for Liabilities (Deferred Tax)	£3,229	Non-cash liability; timing difference for tax purposes.

---

3. Diagnosis: Financial Health Analysis

• Liquidity / Working Capital: The company’s working capital is in deficit, which is a red flag for short-term liquidity. The business has more short-term obligations than it does readily available assets (cash and receivables). However, a large portion of these liabilities are director’s current accounts, which may be flexible or repayable on different terms than commercial creditors, providing some breathing room.

• Solvency: Positive net assets and shareholders’ funds indicate that the company is solvent at this early stage. There is no indication of insolvency risk given the current equity base.

• Cash Flow Position: Cash on hand (£11,821) is insufficient to cover immediate liabilities, but combined with debtor collections, the cash position can improve. However, the company needs to manage cash inflows carefully to avoid liquidity crunches.

• Asset Base: The company holds tangible fixed assets net of depreciation at £29,275, reflecting investment in plant, machinery, motor vehicles, and computer equipment. This suggests the company has invested in operational tools but these are not liquid assets.

• Profitability: No profit and loss data was provided, typical for a first-year company. The absence of reported profit or loss suggests the company may still be in the investment and setup phase rather than generating profits.

• Control and Governance: The sole director, Mrs Emily Elizabeth Ryall, holds 100% control and is actively involved. This centralised control can be a strength in decision-making but also concentrates risk.

---

4. Recommendations: Improving Financial Wellness

1. Enhance Cash Flow Management:

   • Implement strict debtor collection policies to convert receivables into cash quickly.
   • Negotiate payment terms with creditors to align outflows with inflows, especially regarding director’s current account balances.

2. Monitor and Manage Working Capital:

   • Aim to bring net current assets into positive territory by either increasing current assets or reducing current liabilities.
   • Consider short-term financing options if necessary to cover liquidity gaps.

3. Strategic Use of Fixed Assets:

   • Evaluate if all fixed assets are essential or if any can be liquidated or leased to improve cash reserves.

4. Future Profitability Focus:

   • Develop a clear business plan focused on growing turnover and achieving profitability to build retained earnings and cash reserves.

5. Financial Reporting and Oversight:

   • Regularly update financial forecasts and perform monthly cash flow analyses to identify issues early.
   • Although audit exemption applies, consider voluntary independent financial reviews to ensure robust financial controls.

---

Medical Analogy Summary

The company presents a stable but vulnerable cardiovascular system financially. Its liquidity pulse is weak (negative working capital) indicating potential short-term cash flow distress, but its solvency heart remains beating (positive net assets). The business is in its infancy, akin to a young patient needing careful monitoring and nourishment to grow strong. With timely interventions—especially improving cash flow and managing liabilities—the financial health prognosis can improve significantly.

---