MIRIS PROPERTY LTD

Executive Summary

MIRIS PROPERTY LTD remains solvent with positive working capital but faces significant liquidity and net asset reductions, signaling financial strain. Strengthening cash flow management and rebuilding equity reserves are critical next steps to restore financial vitality.

MIRIS PROPERTY LTD - Analysis Report

Company Number: 12428400

Analysis Date: 2025-07-20 19:04 UTC

Financial Health Assessment of MIRIS PROPERTY LTD

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1. Financial Health Score: C

Explanation:
MIRIS PROPERTY LTD exhibits mixed financial "vital signs." While the company maintains positive net assets and working capital, key indicators show signs of financial stress compared to the previous year, notably a sharp reduction in net assets and current assets. The company remains solvent but with diminished financial resilience, meriting a mid-level grade reflecting caution.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	98,583	192,942	Significant decrease; weaker liquidity
Current Liabilities	58,936	70,373	Decreased, but less than assets decline
Net Current Assets (Working Capital)	39,647	122,569	Healthy but sharply reduced, indicating tighter short-term financial flexibility
Net Assets (Shareholders’ Funds)	5,036	40,633	Drastic decline, signs of asset depletion or accumulated losses
Share Capital	2.00	2.00	Minimal capital base typical for micro-entities
Employee Count	0	0	No employees, possibly subcontracted or project-based operations

Interpretation of Vital Signs:

• Liquidity: The company still has a positive net current asset position, suggesting it can cover short-term debts, but the large fall compared to the prior year signals "symptoms of liquidity stress."
• Solvency: Positive net assets indicate the company is solvent, but the sharp decline from £40,633 to £5,036 is a warning sign that underlying financial health has deteriorated substantially.
• Size & Structure: As a micro-entity with minimal share capital, financial buffers are thin, increasing vulnerability to adverse events or cash flow shocks.

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3. Diagnosis

The financial "pulse" of MIRIS PROPERTY LTD shows a company navigating through a challenging period. The stark reduction in current assets and net assets over the last year points to possible operational difficulties or increased liabilities. Despite this, the firm remains solvent with positive working capital, implying no immediate threat of insolvency.

The company’s micro-entity status and zero employee count suggest a lean operation, potentially reliant on subcontractors or project-based contracts. This structure can be advantageous for flexibility but may also imply limited capacity for scaling or absorbing financial shocks.

No indications of overdue filings or legal distress were found, which is a positive sign of compliance and governance.

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4. Recommendations

To restore and improve financial health, the company should consider the following actions:

• Improve Cash Flow Management:
  The sharp decline in current assets signals a need to boost cash reserves or accelerate receivables collection. Consider renegotiating payment terms with clients and suppliers to improve liquidity.

• Expense Control:
  Analyze cost structures to identify non-essential expenses or inefficiencies. Maintaining a lean cost base is critical for micro-entities with limited equity.

• Capital Injection or Reserves Build-Up:
  Explore opportunities for fresh equity investment or retained earnings generation to rebuild shareholders’ funds, thus strengthening solvency.

• Regular Financial Monitoring:
  Establish monthly financial reviews focusing on liquidity ratios (e.g., current ratio), cash flow forecasts, and profitability metrics to catch "early warning signs" before symptoms worsen.

• Strategic Planning:
  Evaluate the business model and market positioning within the "Other building completion and finishing" sector (SIC 43390) to identify growth opportunities or diversification to stabilize income streams.

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Summary Using Medical Analogy

MIRIS PROPERTY LTD’s financial "heartbeat" is steady but weakened. The company shows signs of "financial fatigue" with diminished liquidity and capital reserves. Immediate intervention on cash flow and cost control could prevent the "symptoms of distress" from escalating into a full "financial crisis."

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