SAMANTHA MANT LTD

Executive Summary

Samantha Mant Ltd exhibits significant financial distress with sharply increased short-term liabilities leading to negative working capital and shareholders' funds as of May 2024. While cash on hand has improved, it is insufficient to cover debts, signaling urgent liquidity challenges. Immediate cash flow management and financial restructuring are recommended to restore financial stability and prevent further deterioration.

SAMANTHA MANT LTD - Analysis Report

Company Number: 14348552

Analysis Date: 2025-07-29 20:09 UTC

Financial Health Assessment of SAMANTHA MANT LTD

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1. Financial Health Score: D

Explanation:
The company shows clear signs of financial distress as of the latest reporting date (31 May 2024), with net current liabilities and a shareholders deficit. This indicates a weakened financial position compared to previous periods where the company had marginally positive net current assets and equity. The negative working capital and equity suggest liquidity and solvency issues that need urgent management attention.

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2. Key Vital Signs

Metric	31 May 2024	30 Sep 2023	Interpretation
Current Assets	£2,088	£2,196	Slight reduction but relatively stable; mainly cash and debtors.
Cash at Bank	£773	£348	Improved cash position, which is a positive sign ("healthy cash flow" symptom).
Debtors	£1,315	£1,848	Significant decrease, may indicate collection efforts or reduced sales on credit.
Current Liabilities	£7,690	£2,191	Dramatic increase in short-term debts, a critical "symptom of distress" for liquidity.
Net Current Assets (Working Capital)	-£5,602	£5	Negative working capital shows inability to cover short-term debts with short-term assets.
Shareholders Funds (Equity)	-£5,602	£5	Negative equity indicates insolvency on a balance sheet basis; a serious warning sign.
Employees	1	1	Stable headcount; no growth or reduction, possibly limiting operational flexibility.

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3. Diagnosis

The financial "vital signs" reveal that Samantha Mant Ltd is currently in a fragile condition. The company transitioned from a barely solvent position in September 2023 to a state of negative net assets and working capital by May 2024. The sharp rise in current liabilities without a corresponding increase in current assets suggests the company may be relying heavily on short-term credit or has accrued significant unpaid debts.

This "symptom of distress" points to potential liquidity issues — the company may struggle to meet immediate obligations without additional financing or improved cash inflows. Despite an increase in cash on hand, it is insufficient to offset the large rise in creditors.

The negative shareholders funds (equity) means the company’s liabilities exceed its assets, a condition akin to "balance sheet insolvency." While not necessarily signaling immediate failure, it requires urgent management attention to avoid worsening financial health or regulatory issues.

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4. Recommendations

To improve financial wellness and stabilize the company’s health, consider the following steps:

• Immediate Cash Flow Management:
  Prioritize collection of outstanding debtors and negotiate extended payment terms with creditors to alleviate liquidity pressure. Healthy cash flow is critical to reduce "symptoms of liquidity stress."

• Cost Control and Expense Review:
  Analyze and reduce non-essential expenses to conserve cash. Maintaining a lean operational structure while rebuilding equity is vital.

• Financial Restructuring:
  Explore options for refinancing current liabilities, possibly converting short-term debts to longer terms, or injecting new equity capital to restore balance sheet strength.

• Strategic Business Review:
  Assess whether the current business model and revenue streams are sustainable. Consider adjustments to pricing, service offerings, or customer segments to improve profitability.

• Regular Financial Monitoring:
  Implement monthly financial reviews focusing on working capital metrics and cash flow forecasts to catch emerging issues early.

• Professional Advice:
  Engage with financial advisors or insolvency practitioners if the current liabilities continue to outweigh assets and threaten business continuity.

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