MOVE IT SHAKE IT LTD

Executive Summary

MOVE IT SHAKE IT LTD has rapidly strengthened its financial position since inception, now exhibiting healthy liquidity and equity levels. Continued focus on cash flow management and lease obligations will safeguard its growth trajectory, positioning the company well for sustained financial wellness.

MOVE IT SHAKE IT LTD - Analysis Report

Company Number: 13789511

Analysis Date: 2025-07-20 17:28 UTC

Financial Health Assessment Report for MOVE IT SHAKE IT LTD

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1. Financial Health Score: B

Explanation:
MOVE IT SHAKE IT LTD shows strong improvement in its financial condition over the past two years, moving from a position of negative working capital and minimal net assets to a healthy balance sheet and positive net current assets. The company demonstrates a solid equity base and positive net assets relative to liabilities. However, some caution remains due to the company's young age, modest asset base, and reliance on a single director-owner. The overall financial "vital signs" suggest a generally healthy situation with room for growth and risk management improvements.

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2. Key Vital Signs and Interpretation

Metric	2023	2022	Interpretation
Current Assets	£59,528	£1,704	Marked increase in liquid assets and receivables, indicating improved liquidity and operational scale.
Cash at Bank	£56,408	£0	Very healthy cash position, critical for day-to-day operations and cushioning against shocks.
Debtors	£3,120	£1,704	Growing receivables show increased sales or services rendered on credit; manageable level relative to cash.
Current Liabilities	£22,821	£5,020	Increased short-term obligations, mainly taxes and other creditors; needs monitoring but supported by current assets.
Net Current Assets (Working Capital)	£36,707	-£3,316	Positive working capital indicates the company is liquid and can cover short-term debts—a key sign of financial health.
Net Assets (Equity)	£39,044	£184	Strong growth in shareholders’ funds reflects retained profits or capital injections, enhancing financial stability.
Share Capital	£100	£100	Stable equity base; low paid-up capital typical for a small private company.

Additional Notes:

• Tangible fixed assets modest (£2,993), showing limited investment in long-term physical assets.
• Provisions for liabilities at £656 require attention but are not material.
• Operating lease commitments (£43,574) represent future fixed costs—important for cash flow planning.

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3. Diagnosis: Financial Condition Analysis

"Healthy cash flow pulse": The company has developed a strong cash position (£56,408), a crucial sign of liquidity health and operational strength. This cash buffer reduces financial stress and provides flexibility.

"Symptoms of recovery and growth": From 2022 to 2023, the company has moved from a net current liability position to a robust net current asset position. This improvement suggests effective working capital management and business growth.

"Underlying strength in equity": The jump in net assets from £184 to £39,044 indicates accumulated retained earnings or capital contributions, which strengthen the balance sheet and reduce financial risk.

"Warning signs to watch":

• The company is relatively young (incorporated Dec 2021), so financial history is limited; early-stage businesses often face volatility.
• Increased current liabilities, especially tax and social security (£11,312), require careful cash flow management to avoid liquidity strain.
• Operating lease commitments are significant relative to assets and cash; these fixed costs must be manageable as revenues grow.

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4. Recommendations for Financial Wellness Improvement

1. Maintain strong liquidity monitoring: Continue to ensure cash reserves remain sufficient to cover short-term liabilities and lease commitments. Cash is the lifeblood of the business and must be closely managed.

2. Review operating lease commitments: Explore negotiating lease terms or assessing cost-benefit of these fixed commitments to avoid cash flow stress. Consider if any assets can be acquired to reduce long-term leasing costs.

3. Strengthen debtor management: While current debtors are low, implement prompt invoicing and collection policies to keep receivables converting quickly to cash, maintaining working capital health.

4. Build financial forecasting and budgeting: Develop robust cash flow forecasts and budgets to anticipate tax liabilities and operational expenses, ensuring proactive financial planning.

5. Consider diversification of ownership or advisory support: With sole control by one director/shareholder, introducing non-executive directors or financial advisors could provide governance strength and risk oversight.

6. Prepare for growth investment: As business scales, plan for capital investment in fixed assets or staff to support operations, balancing growth with financial prudence.

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Executive Summary

MOVE IT SHAKE IT LTD has demonstrated a marked improvement in its financial health within two years, transitioning from a fragile position to a robust liquidity and equity status. Its current financial "vital signs" show a healthy cash flow and strong working capital, key for sustaining daily operations and future growth. While the company is still young and faces sizeable lease commitments, prudent cash management and strategic planning will be essential to maintain and enhance its financial wellness.