Company Number: 13118238

Analysis Date: 2025-07-20 15:28 UTC

Financial Health Assessment for MOTION MANOR LTD

---

1. Financial Health Score: B

Explanation:
Motion Manor Ltd demonstrates solid financial improvement and stability with strong growth in net assets and working capital over recent years. The company shows a healthy cash position and positive equity, reflecting good financial resilience for a young, small business. However, the moderate levels of current liabilities and tax/social security obligations suggest vigilance is needed to maintain liquidity and manage short-term obligations efficiently.

---

2. Key Vital Signs

Metric	2025 Value	Interpretation
Fixed Assets	£3,386	Moderate investment in tangible assets, showing reinvestment in operational capability.
Current Assets	£24,298	Healthy growth indicates good short-term resources, including a strong cash balance.
Cash on Hand	£15,490	Strong liquidity position; "healthy cash flow" symptom indicating ability to meet immediate needs.
Debtors	£8,808	Reflects sales on credit; manageable but requires monitoring for timely collection.
Current Liabilities	£11,736	Includes trade creditors and tax liabilities; requires careful management to avoid cash strain.
Net Current Assets	£12,562	Positive working capital; "good pulse" indicating the company can comfortably cover short-term debts.
Net Assets (Equity)	£15,948	Strong equity base, showing accumulated retained earnings and financial solidity.
Shareholders’ Funds	£15,848	Reflects owners’ investment plus retained profits; growing steadily indicating business growth.

---

3. Diagnosis: Overall Financial Condition

Motion Manor Ltd exhibits a "healthy financial heartbeat" with clear signs of recovery and growth since incorporation in 2021. After an initial phase of negative net current assets and equity in 2022, the company has demonstrated a strong turnaround, doubling net current assets and nearly quadrupling net assets by 2025. The increased cash reserves provide a solid buffer against operating risks and unexpected expenses.

The increase in fixed assets suggests reinvestment into the business’s core operations (likely equipment for video production). Debtors have grown in line with sales, which is typical for a growing service business, but the company should maintain efficient credit control to avoid "symptoms of liquidity stress."

Current liabilities have increased, especially tax and social security liabilities, indicating the company is meeting its statutory obligations but must manage cash flows prudently to avoid short-term cash shortages.

Overall, the company is in a stable and improving financial condition with low risk of insolvency at present, but it remains a young business that should continue to monitor and manage working capital carefully as it grows.

---

4. Recommendations

1. Maintain Strong Cash Flow Management:
   Continue to monitor cash inflows and outflows closely, ensuring timely collection of trade debtors and managing payment schedules with creditors to avoid liquidity crunches.

2. Credit Control Enhancements:
   Implement or reinforce credit control policies to reduce debtor days and improve cash conversion cycles, reducing exposure to bad debts.

3. Tax and Social Security Planning:
   Given the rise in tax liabilities, engage in proactive tax planning to optimize cash outflows and avoid surprises at year-end.

4. Asset Utilization Review:
   Regularly assess the productivity and necessity of fixed assets to ensure capital is efficiently deployed and not tying up funds unnecessarily.

5. Strategic Growth Planning:
   As a small but growing business, develop a financial forecast and budgeting process to anticipate funding needs and investment opportunities.

6. Consider Financial Reserves:
   Build contingency reserves to safeguard against potential economic downturns or unexpected expenses, enhancing business resilience.

---