MULTINVESTMENT LIMITED

Executive Summary

MULTINVESTMENT LIMITED currently shows signs of financial distress with negative net assets and poor liquidity, reflecting a fragile financial condition typical of a start-up micro-entity. Immediate focus on improving cash flow, restructuring debt, and injecting capital is critical to stabilizing the company’s financial health and supporting sustainable growth.

MULTINVESTMENT LIMITED - Analysis Report

Company Number: 14720123

Analysis Date: 2025-07-29 18:36 UTC

Financial Health Assessment Report for MULTINVESTMENT LIMITED
As of 31 March 2024

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1. Financial Health Score: D

Explanation:
MULTINVESTMENT LIMITED’s financial health is currently weak, reflected by negative net assets (shareholders' funds) of £40,840. This is a critical "symptom of distress," indicating liabilities exceed assets. The company also exhibits a strained liquidity position with very low current assets (£733) against substantial current liabilities (£99,470), leading to negative net current assets of about £98,737. These factors combine to a below-average financial health score, suggesting urgent attention is required.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	169,128	Substantial investment in long-term assets, likely property.
Current Assets	733	Extremely low short-term assets, indicating weak liquidity.
Current Liabilities	99,470	High short-term obligations that must be met soon.
Net Current Assets (Working Capital)	-98,737	Negative working capital, a "danger sign" for cash flow.
Total Assets Less Current Liabilities	70,391	Positive but modest buffer after covering short-term debts.
Creditors Due After 1 Year	110,411	Significant long-term liabilities, pressure on solvency.
Net Assets (Equity)	-40,840	Negative equity, indicating insolvency on a balance sheet basis.
Employee Count	1	Very small operation, micro-entity scale.

Interpretation of Vital Signs:

• The company’s negative net assets indicate it owes more than it owns, a key "clinical sign" of financial distress.
• The negative working capital suggests the company may have trouble meeting short-term obligations with available liquid assets, hinting at liquidity issues.
• Substantial long-term creditors increase financial risk, as repayment or refinancing may be challenging.
• The presence of fixed assets suggests some capital investment, but these are illiquid and cannot quickly alleviate cash flow stress.

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3. Diagnosis

MULTINVESTMENT LIMITED is currently experiencing symptoms characteristic of a financially distressed micro-company. Negative net assets mean the company is technically insolvent on a balance sheet basis. The negative net current assets indicate poor liquidity, meaning the company may struggle to cover short-term debts as they fall due. The high level of creditors, especially long-term, poses a risk to ongoing solvency unless the company can restructure or generate sufficient cash flows.

Being a very new company (incorporated March 2023), it may still be in early investment or start-up phase, where negative equity and cash flow challenges are common. However, the current financial condition suggests a fragile state that requires careful management to avoid worsening liquidity or solvency issues.

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4. Recommendations

To improve financial wellness and stabilize the company’s financial health, the following actions are advised:

• Strengthen Liquidity:
  Increase current assets by accelerating receivables collection, reducing unnecessary expenses, or injecting additional working capital. Maintaining a "healthy cash flow" is critical to avoid default on short-term obligations.

• Debt Restructuring:
  Engage with creditors to possibly restructure long-term debts, easing immediate repayment burdens and improving balance sheet stability.

• Capital Injection:
  Consider equity infusion from the principal shareholder or external investors to restore positive net assets and fund ongoing operations.

• Cost Management:
  Monitor and control operating costs tightly, given the micro scale and limited resources.

• Regular Financial Monitoring:
  Implement frequent internal reviews of cash flow and financial position to detect early warning signs of distress.

• Strategic Business Review:
  Evaluate the business model and asset utilization to ensure long-term sustainability and profitability.

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