MGACD LIMITED

Executive Summary

MGACD LIMITED currently operates with minimal financial resources and no working capital buffer, reflecting an early-stage or inactive business with limited operational activity. The company’s financial position is fragile, with net assets of just £1 and no employee base, indicating vulnerability to any financial shocks. To improve its financial health, the company should focus on capital infusion, revenue generation, and rigorous cash flow management to build resilience and pave the way for sustainable growth.

MGACD LIMITED - Analysis Report

Company Number: 13788883

Analysis Date: 2025-07-29 17:15 UTC

Financial Health Assessment of MGACD LIMITED

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1. Financial Health Score: D

Explanation:
MGACD LIMITED’s financials reflect a very minimal asset base with net assets of only £1 consistently over the last three years. The company carries no working capital buffer (net current assets of zero), indicating that current assets exactly match current liabilities. This tight financial position suggests a fragile balance sheet with no margin for operational shocks, akin to a patient with extremely low vital signs who is at risk of health complications without immediate intervention.

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2. Key Vital Signs

Metric	Value (2023)	Interpretation
Current Assets	£300	Very low cash or equivalents; minimal liquidity available.
Current Liabilities	£300	Short-term obligations exactly matched by current assets.
Net Current Assets (Working Capital)	£0	No buffer to cover immediate liabilities; risk of cash flow strain.
Net Assets (Equity)	£1	Company has effectively no tangible equity or retained earnings.
Shareholders Funds	£1	Minimal capital invested; no retained profits.
Employee Count	0	No staff employed; low operational complexity or activity.

Additional Notes:

• The company has no employees and minimal financial activity as indicated by micro-entity accounts.
• Incorporation date is recent (Dec 2021), indicating early stage or possibly dormant operational status.
• Director and secretary are the same person, suggesting a one-person operation.

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3. Diagnosis

The financial "symptoms" of MGACD LIMITED reveal a business in the very earliest or inactive phase, with virtually no operational scale or financial buffer. The balance sheet is "anemic," showing no capital reserves beyond the initial £1 of share capital. The lack of working capital means the company is "walking a tightrope" financially; any unexpected expense or delay in revenue could cause distress.

The zero employees and stable but insignificant asset/liability figures suggest minimal trading or possibly a holding or shell entity. The absence of profits or losses in the accounts aligns with little or no business activity. This state is analogous to a patient with very low blood pressure and no strength reserves—currently stable but vulnerable to any stress.

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4. Recommendations

To improve the company’s financial wellness and "fortify its health," MGACD LIMITED should consider:

• Injecting Capital: Increase share capital or secure a loan to build a cash buffer. This strengthens net assets and working capital, improving resilience.
• Generating Revenue: Develop or expand business operations to increase cash inflows. A healthy cash flow is critical to cover liabilities and invest in growth.
• Cost Control: Maintain low overheads initially, especially as there are no employees. Avoid taking on new liabilities without clear income sources.
• Regular Monitoring: Keep close watch on liquidity ratios and ensure timely settlement of liabilities. Early detection of stress symptoms can prevent insolvency.
• Business Plan Review: Clarify business model viability and growth strategy to stakeholders to ensure future sustainability.

If these steps are not taken, the prognosis is that the company risks financial distress if liabilities increase or cash inflows do not materialize.

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