Company Number: 13889667

Analysis Date: 2025-07-20 18:36 UTC

Financial Health Assessment for MIMARA AESTHETICS LIMITED

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress with negative net current assets and net liabilities in recent periods, although there is a slight improvement in the latest year. The small asset base and limited working capital suggest constrained liquidity, which poses risks to ongoing operations. The score reflects a fragile financial state typical of a micro-entity in its early years, requiring close monitoring and corrective action.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	501	0	Minimal investment in long-term assets; may impact operational capacity.
Current Assets	29	171	Very low short-term assets, mostly cash or receivables; liquidity is tight.
Current Liabilities	1,376	3,808	Short-term debts have significantly decreased, a positive sign.
Net Current Assets	-1,347	-3,637	Negative working capital indicates cash flow stress and inability to cover short-term debts.
Total Assets Less Current Liabilities	-846	-3,637	Overall asset base minus short-term liabilities remains negative but improving.
Net Assets (Shareholders’ Funds)	-846	-3,637	Negative equity reflects accumulated losses and financial strain.
Average Number of Employees	1	1	Very small workforce, consistent with micro-entity status.

Interpretation:

• Liquidity: The company has "symptoms of distress" in working capital with negative net current assets, though the reduction in liabilities and slight increase in fixed assets indicate early recovery efforts.
• Solvency: Negative shareholders’ funds suggest the company is currently insolvent on a balance sheet basis but is improving.
• Operational Scale: Being a micro-entity with one employee and minimal assets limits operational flexibility but reduces overhead costs.

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3. Diagnosis

The financial data reveals a young company that has experienced early financial challenges, reflected in negative equity and working capital deficits in its first full year. The subsequent year shows an improvement, with liabilities reduced by over half and a small amount of fixed assets acquired, indicating attempts to stabilize operations. However, the company's cash reserves remain critically low, and the negative net current assets imply ongoing liquidity pressures. The single director and 100% ownership concentration imply centralized control, which can be an advantage for swift decision-making but also a risk if not balanced with external input.

Overall, the company exhibits "symptoms of financial stress" typical of start-ups or micro-entities in specialist medical services. Without increased capital injection, improved cash flow management, or revenue growth, the prognosis is cautious.

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4. Recommendations

To improve financial wellness and strengthen the company’s health, consider the following targeted actions:

• Enhance Liquidity: Prioritize improving working capital by negotiating better payment terms with suppliers or accelerating receivables collection. Explore short-term financing options if necessary to cover immediate obligations.

• Capital Injection: Assess the need for additional equity investment or director loans to restore positive net assets and provide a buffer against unforeseen expenses.

• Cost Control: Maintain tight control over operating expenses given the small scale, and consider incremental growth strategies aligned with available resources.

• Financial Monitoring: Implement regular cash flow forecasting to detect early warning signs of distress and enable proactive management interventions.

• Business Development: Focus on expanding client base or service offerings within the specialist medical practice sector to increase turnover and profitability.

• Governance: Although a single director structure is common in micro-entities, seek external advisory support to challenge assumptions and enhance strategic decisions.

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