MOTUS SPORTS MANAGEMENT LTD

Executive Summary

MOTUS SPORTS MANAGEMENT LTD faces significant financial distress, with liabilities vastly exceeding assets and equity, indicating insolvency risk. Immediate action on cash flow management, debt restructuring, and capital strengthening is critical to restore financial health and ensure business continuity.

MOTUS SPORTS MANAGEMENT LTD - Analysis Report

Company Number: 12521006

Analysis Date: 2025-07-20 14:29 UTC

Financial Health Assessment for MOTUS SPORTS MANAGEMENT LTD

---

1. Financial Health Score: D

Explanation:
The company exhibits significant financial distress symptoms primarily due to very high long-term liabilities relative to assets and equity. Despite being an active micro-entity, the balance sheet shows net liabilities exceeding half a million pounds — a critical red flag that overshadows any operational positives. This places the company in poor financial health, warranting urgent remedial action.

---

2. Key Vital Signs:

Metric	2024 Value (£)	Interpretation
Fixed Assets	0	No tangible or long-term assets, indicating lack of investment in physical or intangible assets.
Current Assets	1,742	Very low short-term assets available to cover immediate obligations.
Current Liabilities	537,000	Extremely high short-term debts, surpassing current assets by a large margin (negative working capital).
Net Current Assets (Working Capital)	-535,258	Negative working capital suggests liquidity strain and potential difficulty meeting short-term obligations.
Total Net Assets (Equity)	-538,258	Negative net worth indicates the company owes more than it owns, a symptom of financial distress.
Share Capital	100	Minimal equity base, insufficient to buffer liabilities.
Employee Count	1	Very small operation, limiting scalability and internal resource strength.
Trend in Net Assets (2020-2024)	Declining from £184,498 to -£538,258	Sharp decline over recent years, reflecting worsening financial viability.

---

3. Diagnosis:

MOTUS SPORTS MANAGEMENT LTD is in a precarious financial state characterized by severe liquidity issues and insolvency risk. The company's liabilities—both current and long-term—dramatically outweigh its assets and shareholder equity. This is akin to a patient with failing vital organs: the company’s "heart" (working capital) is weak, and its "immune system" (equity buffer) is depleted.

The lack of fixed assets suggests the company operates a service model or is asset-light but depends heavily on external financing or creditor support. The negative net worth signals that the company is technically insolvent, which may constrain its ability to secure further funding or trade credit.

This financial "symptom" pattern may be due to ongoing losses, excessive borrowing, or poor cash flow management. The company's survival depends on addressing these issues promptly.

---

4. Recommendations:

• Immediate Cash Flow Management:
  Prioritize cash inflows and outflows to stabilize liquidity. Consider negotiating with creditors to restructure debt terms or extend payment deadlines.

• Debt Restructuring:
  Explore refinancing options to reduce the burden of current liabilities, possibly converting some debt to equity or seeking shareholder loans to alleviate pressure.

• Operational Review:
  Evaluate cost structures and business model viability. With just one employee, assess whether the company can generate sustainable revenue or needs to pivot its strategy.

• Capital Injection:
  Consider raising additional equity capital to restore net asset value and improve financial resilience.

• Professional Advice:
  Engage insolvency professionals or turnaround specialists to assess options such as administration or informal arrangements to avoid liquidation.

• Financial Reporting and Monitoring:
  Implement robust financial controls and regular monitoring to detect early "symptoms" of distress and react proactively.

---