MOVES ACADEMY LTD

Executive Summary

MOVES ACADEMY LTD is a newly formed company exhibiting typical early-stage financial challenges, including negative working capital and equity. Without immediate action to improve cash flow and inject capital, the company risks liquidity strain. Strategic focus on revenue growth and cost control is essential for financial recovery and sustainable operation.

MOVES ACADEMY LTD - Analysis Report

Company Number: 15024413

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

Financial Health Assessment for MOVES ACADEMY LTD (as of 31 July 2024)

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1. Financial Health Score: D

Explanation:
MOVES ACADEMY LTD is a newly incorporated private limited company (incorporated July 2023) operating in sports and education sectors. The financials reflect a start-up phase with initial investment and early operational activity. The company's current liabilities exceed its current assets, resulting in negative net current assets and shareholders' funds, indicating a financial distress symptom. This early stage "unhealthy cash flow" situation is common but requires close monitoring and strategic intervention to avoid worsening liquidity issues.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,189	Modest investment in tangible assets (equipment), typical for a start-up; asset base is low.
Current Assets (Debtors)	12,000	Amount owed by customers; positive but relatively small, reflecting early trading activity.
Current Liabilities	16,318	Obligations due within one year exceed current assets, indicating liquidity pressure.
Net Current Assets	-4,318	Negative working capital signals potential cash flow strain—company owes more than it owns short-term.
Total Assets Less Current Liabilities	-3,129	Overall asset base minus short-term liabilities is negative, a red flag for solvency concerns.
Shareholders’ Funds (Equity)	-3,130	Negative equity ("retained losses") shows accumulated losses exceed investment, typical for new ventures but unsustainable long-term.
Employees	0	No employees yet, limiting operational expenses but also growth potential.
Turnover / Income	Not disclosed	No turnover data available; likely minimal or no sales yet, typical at start-up stage.

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3. Diagnosis: Financial Condition Overview

MOVES ACADEMY LTD is in an embryonic financial state, showing "symptoms of distress" primarily due to negative working capital and shareholders' funds. This situation is not unusual for a business in its first year, especially in education and sports sectors where initial expenses (fixed assets, operational setup) precede revenue generation.

• Liquidity concerns: Current liabilities exceed current assets by £4,318, meaning the company may struggle to meet short-term obligations without additional cash injections or revenue inflows.
• Capital structure: Negative equity indicates funding has so far come from loans or director funding rather than profits, reflecting typical start-up financing but signaling the need for increased capital or improved profitability.
• Operational status: No employees yet, suggesting limited operations or reliance on the director and contractors. This keeps costs low but may constrain growth.
• Audit exemption and small company status: The company benefits from simplified accounting and no audit requirement, which is appropriate for its size but limits detailed financial transparency.

Overall, the company's financial "vital signs" suggest a fragile but not unusual start-up condition. The key risk is sustaining operations until revenues improve and cash flow stabilizes.

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4. Recommendations: Path to Financial Wellness

1. Improve Cash Flow Management:

   • Accelerate debtor collections to improve liquidity.
   • Negotiate with creditors for extended payment terms to ease short-term cash pressure.

2. Capital Injection:

   • Consider additional funding from the shareholder/director or external investors to bolster net assets and working capital.
   • Explore grants or educational funding streams aligned with the company’s sector.

3. Revenue Generation:

   • Prioritize marketing and sales efforts to generate turnover promptly.
   • Develop partnerships with educational institutions or sports organizations to increase client base.

4. Cost Control:

   • Maintain tight control on overheads and delay hiring until revenues are more predictable.
   • Consider outsourcing or part-time arrangements to manage operational costs flexibly.

5. Financial Monitoring:

   • Implement regular cash flow forecasting and financial reviews to detect early warning signs.
   • Prepare for filing the next accounts and confirmation statements on time to avoid penalties.

6. Governance:

   • As sole director and significant shareholder, Mr. Luke Higgins should maintain clear documentation and consider professional advice to ensure compliance and strategic planning.

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Medical Analogy Summary:
MOVES ACADEMY LTD currently exhibits "early-stage startup syndrome" with "symptoms of liquidity distress" and "negative equity malaise." With timely "intervention" in cash management and capital infusion, the company can "recover" and transition to a "healthy financial state."

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