MR Z CURRY PASTE LTD

Executive Summary

MR Z CURRY PASTE LTD is financially unhealthy with negative net assets and working capital deficits, consistent with its dormant status. To improve its financial condition, capital injection and creditor negotiations are recommended alongside a review of its operational plans. Prompt action is needed to avoid worsening financial distress.

MR Z CURRY PASTE LTD - Analysis Report

Company Number: 12592971

Analysis Date: 2025-07-20 18:24 UTC

Financial Health Assessment of MR Z CURRY PASTE LTD

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1. Financial Health Score: D

Explanation:
The company exhibits persistent net current liabilities and negative net assets over recent years, indicative of financial stress. The low cash reserves, combined with increasing creditors, suggest liquidity challenges. The company’s financial "vital signs" show symptoms of distress that require prompt attention to avoid worsening conditions.

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2. Key Vital Signs

Metric	Latest Year (2024)	Interpretation
Current Assets	£4,731	Very limited short-term resources; mostly debtors (£4,502).
Cash	£229	Extremely low cash on hand—minimal buffer for daily operations.
Current Liabilities	£5,510	Debts due within one year exceed current assets, indicating liquidity strain.
Net Current Assets	-£779	Negative working capital; a "symptom" of potential cash flow issues.
Net Assets (Shareholders’ Funds)	-£779	Negative equity signals accumulated losses or undercapitalization.
Share Capital	£1.00	Minimal invested capital, limiting financial strength.
Employees	0	No active workforce, possibly indicating dormant operations.

• The company is categorized as Dormant officially, which aligns with no active trading indicated.
• Debtors remain constant at £4,502, but these are unlikely to be converted into cash promptly given the dormant status.
• Current liabilities have risen by £234 from the previous year, continuing the trend of increasing short-term obligations.

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3. Diagnosis

The financial "pulse" of MR Z CURRY PASTE LTD reveals a company that remains dormant but with a persistent imbalance between what it owes soon (creditors) and what it can readily convert into cash (current assets). The negative net current assets and net liabilities reflect a "chronic condition" of financial weakness.

Despite being dormant, the company carries liabilities greater than its assets, which can be seen as a slow but steady decline in financial health. The minimal cash and negative shareholders’ funds suggest the company is undercapitalized, with limited resources to support any business activity or respond to financial obligations.

The "symptoms" here include:

• Negative working capital indicating an inability to cover short-term debts with short-term assets.
• Negative equity, which may deter investors or lenders.
• No staff employed, consistent with dormancy but potentially limiting turnaround capability.
• Persistent liabilities that are not reducing, which could escalate into insolvency if the company reactivates operations without additional capital.

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4. Recommendations

To improve financial wellness and potentially reactivate the business, consider the following:

1. Capital Injection:
   Inject fresh equity capital to strengthen shareholders' funds and improve net assets. This will provide a healthier financial buffer.

2. Liabilities Management:
   Engage with creditors to negotiate extended payment terms or partial settlements to reduce immediate cash outflows and ease liquidity pressure.

3. Review Dormant Status:
   If the company intends to resume operations, a thorough business plan and cash flow forecast must be prepared to ensure sustainable operations.

4. Cash Flow Improvement:
   Convert debtors into cash where possible. Since debtors remain static and high relative to cash, active collection efforts or write-offs may be necessary.

5. Cost Control & Operational Review:
   Assess the necessity of continuing liabilities and overheads during dormancy. Minimizing ongoing costs will preserve cash.

6. Professional Advice:
   Seek expert financial advice to explore restructuring options or formal insolvency procedures if liabilities continue to outweigh assets without a clear recovery path.

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Executive Summary

MR Z CURRY PASTE LTD is currently dormant but shows persistent financial distress with negative working capital and equity, reflecting an unhealthy financial position. Immediate attention to capital structure and liabilities management is essential to prevent deterioration and prepare for any future business activity. Without intervention, the company risks insolvency due to ongoing obligations exceeding resources.