MOON CARROT MEDIA LTD

Executive Summary

Moon Carrot Media Ltd shows stable but declining financial health, with liquidity tightening and a significant drop in net assets signaling caution. Prompt action to improve working capital and revenue streams is needed to prevent further stress and ensure sustainable growth. The company remains solvent but must monitor cash flow and profitability closely.

MOON CARROT MEDIA LTD - Analysis Report

Company Number: 13587261

Analysis Date: 2025-07-29 14:33 UTC

Financial Health Assessment: MOON CARROT MEDIA LTD

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1. Financial Health Score: C

Explanation:
The company shows signs of moderate financial health but with emerging symptoms of distress, particularly in liquidity and asset utilization. While the balance sheet remains positive with net assets and shareholders’ funds, there is a notable decline in working capital and net assets compared to previous years, indicating potential operational and cash flow challenges.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	37,398	Stable but slightly decreased from prior year; reflects investment in long-term resources.
Current Assets	9,320	Significant drop from £22,195 in 2023; a potential red flag for liquidity tightening.
Cash	4,094	Increased slightly from prior year, indicating some cash buffer, but still modest.
Debtors	5,226	Sharp decrease from £19,637 in 2023, possibly faster collections or fewer sales on credit.
Current Liabilities	8,750	Reduced from £12,726 in 2023 but still close to current assets, suggesting tight liquidity.
Net Current Assets (Working Capital)	570	Very low positive working capital; a symptom of cash flow strain and limited short-term safety.
Creditors (Long Term)	6,957	Decreased from £9,836, showing some debt repayment or restructuring.
Net Assets	31,011	Decreased from £44,681 in 2023; a sign of declining retained earnings and overall net worth.
Shareholders’ Funds	30,911	Mirrors net assets, indicating equity base has shrunk.
Employees	2	Small team, consistent with small company status; low overhead but limited resource flexibility.

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3. Diagnosis: Financial Condition Overview

Moon Carrot Media Ltd presents a picture of cautious financial health with underlying caution signals akin to a patient whose vital signs are stable but trending downward. The company’s net assets have fallen by approximately 30% over the last year, primarily due to a contraction in working capital and a reduction in current assets, notably debtors.

The working capital is marginally positive (£570) but has dropped sharply from previous years (£9,469), indicating the company’s short-term liquidity—the “cash in hand to pay bills”—is nearly at a critical threshold. This could restrict operational flexibility and increase vulnerability to unexpected expenses or downturns in revenues.

The decline in debtors may suggest improved collections or reduced credit sales, which could be positive if it improves cash flow, but it could also indicate a fall in sales volume, a symptom worth monitoring.

Long-term creditors have decreased, suggesting some debt repayments or restructuring, which is a positive sign for long-term solvency. However, the overall decrease in net assets and shareholders’ equity points to reduced profitability or accumulated losses, which is a concern for sustained financial health.

The company’s small size and limited employee base imply a lean operation but also limit capacity to scale quickly or absorb shocks.

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4. Recommendations: Improving Financial Wellness

• Improve Working Capital Management:
  Maintain a stronger buffer of current assets over current liabilities. Prioritize faster collection of receivables and manage payables strategically to improve liquidity.

• Monitor and Boost Revenue Streams:
  Investigate the cause of reduced debtors and overall asset contraction. If sales are declining, consider strategic marketing or diversification to restore growth.

• Cost Control and Efficiency:
  With only two employees, overhead is low, but continual monitoring of fixed asset usage and operational expenses is essential to maintain profitability.

• Debt Management:
  Continue reducing long-term debt to improve solvency while ensuring debt repayments do not strain short-term liquidity.

• Scenario Planning and Cash Flow Forecasts:
  Regular cash flow projections will help anticipate crunch points and allow proactive management of cash reserves.

• Director Oversight:
  Given the significant control by a single individual, ensure robust governance and transparent financial monitoring to mitigate risks.

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Medical Analogy Summary

Moon Carrot Media Ltd currently has a stable but weakening pulse in its financial health. The company’s cash flow is “labored” with minimal reserves, and the drop in net assets is a symptom of underlying operational stress. Immediate attention to liquidity and revenue generation will act like strengthening the heart muscle to prevent further deterioration.

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