MLN HOLDINGS LIMITED

Executive Summary

MLN HOLDINGS LIMITED shows strong financial health with solid growth in net assets and positive working capital, indicating good liquidity and capital structure. While the company benefits from micro-entity simplicity, increasing transparency on profitability and cash flow will help better assess operational strength and support future growth. Overall, the business is financially stable with promising prospects if it maintains prudent management and reporting practices.

MLN HOLDINGS LIMITED - Analysis Report

Company Number: 13734840

Analysis Date: 2025-07-29 16:27 UTC

Financial Health Assessment of MLN HOLDINGS LIMITED as at 28 February 2024

---

1. Financial Health Score: B

Explanation:
MLN HOLDINGS LIMITED demonstrates solid financial footing with strong net assets growth and healthy working capital. The company shows good capitalisation and no signs of immediate distress. However, as a micro-entity with limited disclosure and no profit and loss statement provided, full assessment of profitability and cash flow robustness is constrained, resulting in a “B” rather than an “A” grade.

---

2. Key Vital Signs

Metric	Latest (2024)	Interpretation
Fixed Assets	£1,150,146	Significant investment in long-term assets, doubling from prior year, indicating expansion or asset acquisition.
Current Assets	£799,994	Healthy short-term resources, increased moderately year-on-year.
Current Liabilities	£348,278	Manageable short-term debts; increased but offset by asset growth.
Net Current Assets	£451,716	Positive working capital, indicating liquidity to cover short-term obligations (“healthy cash flow buffer”).
Shareholders’ Funds	£1,601,862	Rising equity base, reflecting retained earnings or capital injections; strong financial foundation.
Employees	3	Small team consistent with micro-entity size and operations.
Company Category	Micro	Limited disclosure but appropriate for size and filing regime.
Industry Classification	Holding Company (SIC 64209)	Primarily holding assets/companies, asset-heavy business model.

---

3. Diagnosis: Financial Health Insights

• Balance Sheet Strength:
  The company’s net assets increased by approximately 56% from £1,027,447 to £1,601,862 over the year, driven mainly by increased fixed assets (from £600,123 to £1,150,146). This suggests asset acquisition or revaluation, a positive sign of growth or investment in strategic holdings.

• Liquidity and Working Capital:
  Net current assets of £451,716 indicate a “healthy cash flow” position with sufficient short-term assets to cover liabilities comfortably. This mitigates liquidity risk and reduces the likelihood of cash crunch symptoms.

• Profitability and Earnings:
  A limitation is the absence of the profit and loss account, preventing direct evaluation of operating performance, margins, or net income trends. However, the growth in shareholders’ funds hints at profitability or equity injections.

• Size and Compliance:
  As a micro-entity, MLN HOLDINGS LIMITED benefits from simplified accounting and audit exemptions, which reduces compliance burdens but limits transparency. The company is current with filings, indicating good administrative health.

• Governance and Control:
  Directors and significant controllers are stable and experienced, with no red flags such as disqualifications noted, supporting sound governance.

---

4. Recommendations: Path to Enhanced Financial Wellness

1. Profit & Loss Transparency:
   Consider voluntarily preparing and sharing profit and loss statements to provide stakeholders with clearer insight into operational profitability and cash generation. This would improve confidence and facilitate more precise financial analysis.

2. Cash Flow Monitoring:
   Implement detailed cash flow tracking to ensure liquidity remains robust, particularly as fixed asset levels rise, which may tie up cash.

3. Asset Utilisation Review:
   Conduct a periodic review to assess the return on fixed assets, ensuring that the significant investment is generating expected income or strategic value.

4. Growth and Risk Management:
   Explore diversification of income streams if reliant on a few holdings, and maintain conservative leverage to avoid over-extension.

5. Stakeholder Reporting:
   Enhance communication with shareholders and potential investors by providing narrative reports on business strategy, prospects, and risk mitigation, beyond micro-entity statutory minimums.

---

Medical Analogy:
MLN HOLDINGS LIMITED exhibits a “healthy cardiovascular system” with strong capital (the heart) and robust liquidity (the blood flow) delivering nutrients to the business. The “symptoms” reveal no immediate distress, but the absence of detailed profit data is akin to missing a full diagnostic test — it’s advisable to perform more thorough check-ups to confirm ongoing wellness and detect any hidden ailments.

---