MXH CAPITAL LTD

Executive Summary

MXH CAPITAL LTD exhibits a healthy and improving financial position typical of a growing micro-entity, with solid liquidity and increasing net assets indicating strong financial "vital signs." There are no signs of distress, and the company is well-positioned for sustainable growth if it continues prudent financial management and governance. Regular monitoring and strategic planning will help maintain this positive trajectory.

MXH CAPITAL LTD - Analysis Report

Company Number: 14037284

Analysis Date: 2025-07-20 18:45 UTC

Financial Health Assessment for MXH CAPITAL LTD as at 31 March 2024

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1. Financial Health Score: B

Explanation:
MXH CAPITAL LTD demonstrates a solid financial foundation typical for a micro-entity in its early years. The company shows consistent growth in net assets and working capital, indicating a healthy financial "pulse." However, the absolute scale remains modest, and the business is still in its infancy, which limits the score to a "B" grade. With continued prudent management, the company is positioned well for sustainable growth.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	3,503	3,208	Stable fixed asset base, suggesting minimal capital investment but consistency.
Current Assets	22,014	14,718	Healthy increase in short-term assets (cash, receivables), indicating improved liquidity.
Current Liabilities	3,153	5,113	Decreasing short-term debts, a positive symptom of reduced immediate financial obligations.
Net Current Assets (Working Capital)	18,861	9,605	Strong growth reflects robust short-term financial health and ability to cover liabilities.
Total Assets less Current Liabilities	22,364	12,813	Overall asset strength net of immediate debts has nearly doubled, a very positive sign.
Net Assets / Shareholders’ Funds	22,364	12,813	Growth in equity indicates retained earnings or capital injection, strengthening the business.
Average Employees	1	1	Minimal staffing aligns with micro entity size; implies lean operations.

Interpretation of Vital Signs:
The company’s "vital signs" reveal a stable and improving financial condition. The increase in current assets alongside a reduction in current liabilities suggests a "healthy cash flow" situation, akin to a patient whose blood pressure and heart rate are within safe ranges. The net asset growth is a strong "immune response," indicating that the company is building resilience and financial strength.

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3. Diagnosis

MXH CAPITAL LTD shows no symptoms of financial distress. The company’s balance sheet portrays a stable and growing business with sufficient working capital to meet short-term obligations comfortably. The steady increase in net assets is a sign of retained earnings or fresh capital, which provides a buffer against potential risks.

The micro-entity status means reporting requirements are simplified, but the company still demonstrates sound financial stewardship. The single director owning 75-100% control implies centralized decision-making, which can be beneficial for swift strategic actions but also requires vigilance to maintain governance and risk management.

There are no overdue filings or signs of liquidity strain, which reduces the risk of penalties or regulatory complications. The sector classification (Other information service activities) usually demands low capital expenditure, reflected in the stable fixed assets.

In medical terms, this company would be considered "fit and stable," with no current signs of distress or illness but still early in its life cycle. Continued monitoring and proactive management will be essential as it grows.

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4. Recommendations

To maintain and improve financial wellness, the company should consider the following actions:

• Enhance Cash Flow Monitoring: Continue to monitor current assets and liabilities carefully to maintain strong liquidity. Establish cash flow forecasts to anticipate any seasonal fluctuations or unexpected expenses.

• Build Capital Reserves: While current equity is growing, setting aside additional reserves can help weather unforeseen challenges, much like building a stronger immune system.

• Diversify Revenue Streams: As a micro-entity, revenue diversification reduces dependency on a single income source, lowering risk exposure.

• Governance and Compliance: Maintain timely statutory filings and consider appointing a company secretary or additional directors if growth demands more robust governance structures.

• Strategic Investment: Consider modest investments in fixed assets or technology to improve operational efficiency, provided these do not strain cash resources.

• Risk Management: Implement basic risk management practices, including contingency planning, to prepare for market or regulatory changes.

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