MY PARADISE FOUND LTD

Executive Summary

MY PARADISE FOUND LTD is currently in a financially fragile state, marked by negative net assets and ongoing losses despite compliance with filing obligations. The company exhibits symptoms of distress typical for a micro entity in early stages or facing market challenges. Immediate focus on revenue growth, cost control, and capital strengthening is essential to improve financial health and secure a sustainable future.

MY PARADISE FOUND LTD - Analysis Report

Company Number: 12522072

Analysis Date: 2025-07-29 12:08 UTC

Financial Health Assessment of MY PARADISE FOUND LTD

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1. Financial Health Score: D

Explanation:
MY PARADISE FOUND LTD exhibits clear symptoms of financial distress. Although the company is active and filing on time, fundamental financial indicators such as persistent negative net assets, recurring losses, and insufficient working capital signal an unhealthy financial state. The company lacks a solid equity base and is operating at a loss, which undermines its financial resilience.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Turnover (Revenue)	£2,814	Very low revenue for a travel agency, indicating limited business activity or market traction.
Profit / (Loss) for Period	-£3,352	Operating at a loss, which drains cash reserves and equity.
Net Assets (Shareholders Funds)	-£6,797	Negative equity indicates liabilities exceed assets, a key symptom of financial distress.
Fixed Assets	£203	Minimal investment in long-term assets, typical for a micro travel agency but low asset base.
Provision for Liabilities	£7,000	Significant liabilities provision, reducing net asset value further.
Average Employees	2	Small workforce consistent with micro entity status, but limited capacity for growth.
Working Capital (Current Assets - Current Liabilities)	Not explicitly positive	Limited current assets and liabilities data but liabilities appear to outweigh assets.

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3. Diagnosis

The company is showing classic signs of "financial illness." The persistent negative net assets reflect that MY PARADISE FOUND LTD is "underweight" in equity capital, meaning it owes more than it owns. Despite low fixed assets and a micro business scale, the company’s losses erode its financial "immune system," making it vulnerable to cash flow problems and creditor pressure.

The very low turnover relative to liabilities and losses suggests the company is either in a start-up phase struggling to gain sales or facing market challenges that restrain revenue growth. The £7,000 provisions for liabilities act like a chronic burden, further eroding financial health.

While the company is compliant with filing deadlines (a positive sign of governance), the core financial metrics show a company in a precarious state, needing urgent intervention to prevent further deterioration or potential insolvency.

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4. Recommendations

To restore financial wellness and improve the prognosis, MY PARADISE FOUND LTD should consider the following actions:

• Enhance Revenue Generation:
  Develop a robust sales and marketing plan to increase turnover beyond nominal levels. Explore partnerships, targeted promotions, or diversification within travel niches to boost customer acquisition.

• Cost Control and Expense Management:
  Review operating expenses closely to reduce losses. The current losses are unsustainable; trimming overhead or renegotiating supplier terms may ease financial strain.

• Capital Injection or Debt Restructuring:
  Seek fresh equity investment or restructure liabilities to improve net asset position and working capital. Negative equity signals urgent need for capital support to "strengthen the heart" of the company.

• Cash Flow Monitoring:
  Implement strict cash flow forecasting and management to avoid liquidity crises. Healthy cash flow is critical for survival, especially in a service industry with tight margins.

• Strategic Review:
  Conduct a detailed business review to assess market fit, competitive positioning, and operational efficiency. This "diagnostic" will guide whether to pivot, scale, or consolidate.

• Regular Financial Reporting:
  Maintain timely and accurate accounting to detect symptoms early and manage financial health proactively.

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