MLR VENTURES LTD

Executive Summary

MLR VENTURES LTD has a moderate financial health profile with solvency intact but notable declines in current assets and net assets indicating financial strain. While the company maintains positive working capital and equity, the significant reduction suggests caution and the need for improved cash flow management and strategic focus to stabilize and improve financial wellness.

MLR VENTURES LTD - Analysis Report

Company Number: 13584251

Analysis Date: 2025-07-29 13:33 UTC

Financial Health Assessment Report for MLR VENTURES LTD

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1. Financial Health Score: C

Explanation:
MLR VENTURES LTD shows a moderate financial position with positive net assets and working capital, but there is a notable decline in current assets and net assets over the last year. The company is maintaining positive equity and liquidity but exhibits symptoms of shrinking financial resources that warrant cautious monitoring.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Fixed Assets	750	750	Stable, but very low fixed asset base, typical for a micro-entity in consultancy sectors.
Current Assets	19,711	69,663	Sharp decrease, indicates reduced cash or receivables—potentially strained liquidity.
Current Liabilities	7,359	45,371	Substantial decrease in short-term liabilities; could be due to paying down creditors.
Net Current Assets (Working Capital)	12,352	24,292	Positive but reduced by about 50%, showing less buffer to cover short-term obligations.
Total Assets Less Current Liabilities	13,102	25,042	Decline indicates overall reduction in net asset base; needs attention.
Net Assets (Shareholders’ Funds)	13,102	25,042	Equity has halved, signaling retained earnings or capital have been consumed.
Employees	0	0	No staff employed, typical for consultancy firms operating via directors or contractors.

Interpretation of Vital Signs:

• The company has a "healthy cash flow" symptom in 2022 with strong working capital but shows "symptoms of distress" in 2023 due to significant asset reductions.
• The positive net assets reflect solvency, but the decline suggests possible operational or financial strain.
• No employees means low fixed overhead but also potential dependency on directors or subcontractors.

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3. Diagnosis

MLR VENTURES LTD is financially solvent with positive equity and working capital, which are key indicators of a "healthy heart" for a business. However, the sharp decline in current assets and net assets over the last year flags "symptoms of financial fatigue" — possibly due to lower revenues, increased expenses, or capital withdrawals. The decrease in current liabilities suggests some debts have been repaid, which is positive but may also reduce liquidity if cash outflows have been significant.

The micro-entity status and small asset base are consistent with a lean consultancy operation, but the financial contraction indicates the company is not currently in a growth phase and may be experiencing operational challenges or reduced business activity.

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4. Recommendations

• Cash Flow Monitoring: Implement rigorous cash flow forecasting to detect liquidity issues early and avoid surprises, as the reduction in current assets signals potential cash constraints.
• Cost Control and Revenue Generation: Review operational costs and explore avenues to increase consulting contracts or IT consultancy projects to rebuild asset base and working capital.
• Capital Injection: Consider injecting additional capital or retaining earnings to restore net assets and provide a stronger financial cushion.
• Debtor Management: Tighten credit control to reduce days sales outstanding, as a drop in current assets may reflect slower collections.
• Financial Reporting: Continue timely filing and consider preparing management accounts more frequently to track financial health dynamically.
• Strategic Review: Evaluate business model and client mix to identify causes of financial contraction and develop a turnaround strategy if necessary.

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