MIDAS BUSINESS LIMITED

Executive Summary

MIDAS BUSINESS LIMITED is a micro-sized company with a stable yet modest financial position characterized by positive net assets and working capital but declining turnover and limited operational scale. The company is solvent and managing expenses well but faces challenges in generating significant revenue. Strategic focus on sales growth and resource investment is recommended to strengthen financial health and ensure sustainable future performance.

MIDAS BUSINESS LIMITED - Analysis Report

Company Number: 14257535

Analysis Date: 2025-07-20 14:18 UTC

Financial Health Assessment Report: MIDAS BUSINESS LIMITED

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1. Financial Health Score: C

Explanation:
MIDAS BUSINESS LIMITED shows a stable but very modest financial profile typical of a micro entity in its early years of operation. The company maintains positive net assets and working capital, indicating a basic level of financial stability ("healthy pulse" in assets vs liabilities). However, low turnover and declining revenue signal "symptoms of distress" that suggest the business is still in its infancy and not yet generating significant operational cash flow. The financial structure is sound but the scale and growth potential appear limited at this time.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Turnover	3,965	Very low revenue, decreased from prior year (£6,484), indicating weak sales or client acquisition
Profit (Loss) for Period	1,169	Small positive profit despite low turnover suggests tight control on expenses
Fixed Assets	704	Modest investment in long-term assets, showing some commitment to operational capacity
Current Assets	2,065	Cash and receivables sufficient for short-term obligations
Current Liabilities	0	No immediate debts or payables, indicating good short-term liquidity
Net Current Assets (Working Capital)	2,065	Positive working capital, a sign of "healthy cash flow" position
Net Assets / Shareholders Funds	2,771	Positive equity base, showing company is solvent with no accumulated losses
Employee Count	0	No employees, possibly reliant on directors or contractors

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3. Diagnosis: What the Financial Data Reveals About Business Health

MIDAS BUSINESS LIMITED is a micro entity operating in IT consultancy and retail via internet/mail order, with very modest scale and financial activity. The company has maintained positive net assets and working capital, which are critical "vital signs" indicating it is not under immediate financial distress or insolvency risk. The absence of current liabilities suggests the company is managing its short-term obligations well.

However, the company's turnover has dropped significantly from £6,484 to £3,965 in the most recent year, showing a concerning "symptom" of declining sales or client demand. The profit remains small but positive, indicating expense control, yet the low revenue base means the business is not yet generating robust operational cash flows to fuel growth or absorb shocks.

The company employs no staff, which could suggest an owner-managed structure or reliance on third-party contractors. This may limit capacity for scaling operations unless new resources are added.

Overall, the company is financially solvent and stable but shows early-stage characteristics with limited commercial traction and growth. Without an increase in sales or investment, the financial health will remain fragile.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Boost Revenue Generation: Focus on marketing and client acquisition strategies to reverse the turnover decline. Explore partnerships, digital marketing, or expanding product/service offerings to drive sales growth.
• Monitor Expense Management: Continue tight control on operating costs to maintain profitability as turnover scales.
• Cash Flow Forecasting: Implement regular cash flow forecasting to anticipate liquidity needs and ensure working capital remains positive.
• Consider Investment in Resources: Evaluate hiring or contracting skilled personnel to increase operational capacity and drive business development.
• Financial Reporting & Planning: Develop more detailed budgets and financial plans to guide growth and monitor "financial health" symptoms proactively.
• Review Business Model: Assess market positioning and pricing strategy to improve competitiveness and customer retention.

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