MOZY AUTOS LTD

Executive Summary

MOZY AUTOS LTD is currently experiencing financial distress characterized by negative net assets and poor liquidity, indicating the company is in a fragile financial state. Immediate actions focused on improving cash flow, injecting capital, and controlling costs are critical to reversing this downward trend and stabilizing the business.

MOZY AUTOS LTD - Analysis Report

Company Number: 13680272

Analysis Date: 2025-07-29 16:57 UTC

Financial Health Assessment for MOZY AUTOS LTD (As of 31 October 2024)

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1. Financial Health Score: D

Explanation:
MOZY AUTOS LTD exhibits significant signs of financial distress, reflected by persistent negative net assets and increasing current liabilities, resulting in a weakened capital base. The company’s financial "vital signs" suggest it is operating under "symptoms of distress" such as negative working capital and erosion of shareholder equity. While still active and compliant with filing deadlines, the financial health is below average for a micro-entity.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	1,253	Very low asset base; limited investment in long-term resources.
Current Liabilities	12,304	High short-term debts; immediate obligations likely stressing liquidity.
Net Current Assets (Working Capital)	-12,304	Negative working capital indicates "unhealthy cash flow" and inability to meet short-term liabilities from current assets.
Net Assets (Shareholders’ Funds)	-11,051	Negative equity signals accumulated losses or undercapitalization, akin to a "weakened immune system" for the business.
Trend in Net Assets	Declined from -3,610 (2021) to -11,051 (2024)	Worsening financial condition over time, indicating increasing financial stress.
Employees	1	Micro entity with minimal staffing, limiting operational scale but also overhead.

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3. Diagnosis

MOZY AUTOS LTD is currently in a "financially fragile state." The company’s balance sheet reveals a chronic deficiency in net assets and working capital shortages, which are "symptoms" of ongoing financial strain. The negative net assets imply that liabilities exceed assets, placing the company in a technically insolvent position under accounting terms, though not necessarily indicating legal insolvency yet.

The rising current liabilities, with no corresponding growth in current assets, suggest the business may struggle to meet short-term obligations without external support or restructuring. The fixed assets are minimal, meaning there is little collateral or capital investment backing the business.

The company’s ownership is concentrated, with a single person holding 75-100% voting rights, which can be advantageous for quick decision-making but also concentrates risk.

The absence of profit and loss data limits deeper diagnosis, but the negative equity trend strongly suggests ongoing losses or withdrawals exceeding business income.

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4. Recommendations

To restore the company’s financial wellness and strengthen its "financial immune system," the following steps are advised:

• Improve Liquidity:
  Increase current assets, particularly cash reserves, to alleviate negative working capital. This might involve better cash flow management, accelerating receivables, or renegotiating payment terms with suppliers.

• Capital Injection:
  Consider an equity injection or shareholder loan to shore up net assets and reduce insolvency risk. Fresh capital will improve solvency and provide a buffer against liabilities.

• Cost Control and Revenue Growth:
  Conduct a thorough review of operating expenses and seek opportunities to increase profitable revenues to reverse accumulated losses.

• Financial Monitoring:
  Implement regular financial review processes to monitor vital signs such as cash flow, liabilities, and asset quality, similar to routine health check-ups.

• Professional Advice:
  Engage with financial advisors or turnaround specialists to restructure debt or explore refinancing options if cash flow pressures persist.

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