MOVING OBJECTS LTD

Executive Summary

MOVING OBJECTS LTD is financially sound with strong liquidity, positive equity growth, and low short-term liabilities, indicating a healthy financial state. The company benefits from a robust cash position and solid working capital, with no signs of distress. Continued monitoring of cash flow and receivables, along with prudent financial management, will support sustained growth and resilience.

MOVING OBJECTS LTD - Analysis Report

Company Number: 13119621

Analysis Date: 2025-07-20 13:10 UTC

Financial Health Assessment for MOVING OBJECTS LTD (As at 31 March 2024)

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1. Financial Health Score: A-

Explanation:
MOVING OBJECTS LTD demonstrates a robust financial condition characterized by strong liquidity, positive net assets, and consistent shareholder equity growth. The company maintains a healthy cash position relative to its liabilities, indicating solid short-term financial stability. Minor caution arises from a slight decline in current assets and cash compared to the previous year, but overall, the company’s financial "vital signs" suggest good health and resilience.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	211,801	Strong short-term assets, though slightly down from last year (£255,251), still ample to cover liabilities.
Cash at Bank	169,036	Healthy cash reserves, crucial for meeting immediate obligations; slight reduction but remains strong.
Debtors	42,765	Moderate receivables base; timing and collection efficiency should be monitored to avoid liquidity "symptoms."
Current Liabilities	21,134	Low current liabilities relative to assets, indicating low short-term debt pressure.
Net Current Assets (Working Capital)	190,667	Very healthy working capital; the business has a comfortable buffer to cover short-term debts.
Net Assets (Equity)	194,877	Strong positive equity, reflecting retained earnings and solid capitalization.
Share Capital	100	Minimal share capital; the bulk of equity is retained earnings, indicating reinvestment of profits.
Tangible Fixed Assets	5,613	Modest investment in fixed assets, appropriate for a design-focused company with low capital intensity.

Additional notes:

• No employees reported, suggesting a lean or owner-operated business model.
• No audit required, consistent with small company status.
• Director holds full control, indicating centralized decision-making.

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3. Diagnosis: Financial Condition and Underlying Health

MOVING OBJECTS LTD exhibits the "vital signs" of a financially fit company. The healthy cash flow ("heartbeat") is evident with cash balances far exceeding current liabilities, meaning the company can comfortably fund its operations without liquidity strain. The working capital is robust, showing no symptoms of short-term distress or over-leverage.

The net assets and retained earnings growing steadily over the years reflect profitable operations and prudent management of resources, akin to a strong immune system protecting the business against external shocks.

The slight reduction in current assets and cash from 2023 to 2024 could be a minor "fatigue symptom" but is not alarming. It may indicate increased spending or investment, or a timing difference in receivables collection, which should be monitored.

The absence of employees suggests low fixed overhead, reducing risk but also potentially limiting scalability. The company's focus on specialized design activities aligns with the low tangible asset base and reliance on intellectual capital.

Overall, this company is financially stable, with no immediate "symptoms" of distress such as negative working capital, excessive debt, or deteriorating equity.

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4. Recommendations: Steps to Maintain and Improve Financial Wellness

• Monitor Cash and Receivables Regularly: Maintain vigilance on debtor collection to prevent cash flow bottlenecks—ensure timely payments to keep the "pulse" strong.
• Plan for Growth Investment Carefully: If business expansion is planned, evaluate capital needs and consider increasing fixed assets or hiring strategically to avoid overextension.
• Maintain Low Debt Levels: Continue prudent management of liabilities to preserve liquidity and financial flexibility.
• Prepare for Audit or External Review: As the business grows, consider voluntary audits or financial reviews to enhance credibility with stakeholders and lenders.
• Develop Contingency Plans: Build a modest cash reserve beyond current levels as a buffer against unexpected expenses or downturns, strengthening the financial "immune system."
• Document Business Controls and Governance: As sole director and owner, formalize processes to mitigate risks and support sustainable decision-making.
• Review Tax Position Annually: Optimize tax planning to maximize retained earnings and reinvestment potential.

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Executive Summary