MYTECHUK LIMITED

Executive Summary

MYTECHUK LIMITED is currently experiencing financial distress characterized by negative working capital and shareholders’ funds, indicating liquidity and solvency challenges. Immediate focus on working capital management, capital injection, and cost control is essential to restore financial health and ensure operational sustainability. Without corrective action, the company risks escalating financial difficulties.

MYTECHUK LIMITED - Analysis Report

Company Number: 13973659

Analysis Date: 2025-07-29 13:45 UTC

Financial Health Assessment of MYTECHUK LIMITED

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1. Financial Health Score: D

Explanation:
MYTECHUK LIMITED shows persistent negative net current assets and shareholders’ funds over the past four financial years, indicating ongoing liquidity and solvency challenges. The company’s working capital is negative, which is a clear symptom of financial distress. While the company is still active and filing accounts timely, the financial “vital signs” suggest a weak financial condition with potential risk to operational sustainability if corrective measures are not implemented.

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2. Key Vital Signs

Metric	2025 (£)	Interpretation
Fixed Assets	12,500	Minimal investment in long-term assets; typical for a micro wholesale company.
Current Assets	56,542	Cash and receivables are growing, which is a positive sign.
Current Liabilities	80,301	High short-term obligations; increased significantly from previous year.
Net Current Assets	-23,759	Negative working capital — company owes more in short term than it owns in liquid assets, a "symptom of distress".
Total Assets Less Current Liabilities	-11,259	Overall net assets are negative – indicates insolvency on a balance sheet basis.
Shareholders’ Funds	-11,259	Negative equity shows accumulated losses or undercapitalization.

Additional Observations:

• Average number of employees is very low (1 in 2025), implying a lean operation but possibly limited capacity.
• The company is in the wholesale trade of computer equipment (SIC 46510), a sector requiring good cash flow to manage inventory and supplier payments.
• The company is compliant with filing deadlines, which is a positive governance sign.

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3. Diagnosis

The financial “symptoms” seen in MYTECHUK LIMITED reveal significant liquidity and solvency issues:

• Negative Working Capital: The company consistently has current liabilities exceeding current assets by a substantial margin. This indicates difficulty in meeting short-term obligations without additional financing or asset sales.
• Negative Shareholders’ Funds: The persistent deficit in equity is concerning and suggests the business has accumulated losses or insufficient capital injection since incorporation.
• Increase in Current Liabilities: The sharp rise from £47,307 in 2024 to £80,301 in 2025 may indicate growing creditor pressure or rising short-term debt.
• Minimal Fixed Assets: While low fixed assets are not unusual in micro wholesale companies, this limits the company’s collateral base for borrowing.
• Lean Staffing: Only one employee on average may be insufficient to drive growth or manage operations effectively, potentially affecting business scalability.

The overall diagnosis is that MYTECHUK LIMITED is in a financially fragile state with symptoms akin to a patient showing signs of chronic stress and undernourishment. Without intervention, the company risks worsening liquidity problems or insolvency.

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4. Recommendations

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

• Improve Working Capital Management:

  • Negotiate better payment terms with suppliers to delay cash outflows.
  • Accelerate receivables collection to improve cash inflow speed.
  • Consider reducing inventory levels if applicable to free up cash.

• Capital Injection:

  • Explore additional equity funding or shareholder loans to restore positive shareholders’ funds and strengthen the balance sheet.

• Cost Control:

  • Keep operating expenses minimal, especially given the small employee base.
  • Monitor overheads closely to ensure expenses do not outpace revenue growth.

• Financial Planning & Forecasting:

  • Develop a robust cash flow forecast to anticipate liquidity issues ahead of time.
  • Use scenario planning to prepare for downturns or unexpected expenses.

• Explore Financing Options:

  • Consider short-term credit facilities or invoice financing to bridge cash flow gaps, but cautiously to avoid excessive debt.

• Business Strategy Review:

  • Evaluate pricing, customer base, and market positioning to identify growth opportunities.
  • Assess whether the current business model is sustainable or if pivoting is required.

• Governance & Monitoring:

  • Continue timely statutory filing and maintain transparent financial reporting.
  • Engage professional financial advice regularly to monitor progress.

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