TRACING MOVEMENT LIFE LTD

Executive Summary

Tracing Movement Life Ltd is currently experiencing financial strain characterized by negative working capital and net liabilities, indicating an inability to meet short-term obligations comfortably. Immediate focus should be on improving liquidity and capital structure to avoid insolvency risks. Without corrective actions, the company’s financial health outlook remains precarious.

TRACING MOVEMENT LIFE LTD - Analysis Report

Company Number: 14334644

Analysis Date: 2025-07-20 15:30 UTC

Financial Health Assessment for TRACING MOVEMENT LIFE LTD

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1. Financial Health Score: D

Explanation:
The company exhibits signs of financial distress with negative net current assets and net liabilities equal to the negative shareholders’ funds. While the micro-entity status means filing requirements and scale are small, the persistent negative working capital and net asset position indicate the company is not currently financially healthy.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Current Assets	£10,311	Limited short-term resources available to meet immediate obligations.
Current Liabilities	£11,510	Short-term debts slightly exceed assets, indicating liquidity strain.
Net Current Assets (Working Capital)	£-1,199	Negative working capital signals potential cash flow difficulties and inability to cover short-term liabilities comfortably.
Net Assets / Shareholders’ Funds	£-1,199	Negative equity position means liabilities exceed assets, a symptom of accumulated losses or undercapitalisation.
Employee Count	0	No employees, which may reduce operational costs but also implies limited business activity or reliance on director(s).
Account Category	Micro	Small scale operation with simpler financial reporting but limited financial buffer.

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3. Diagnosis

The company is currently in a fragile financial state, akin to a patient with low blood pressure and symptoms of nutrient deficiency. The negative net current assets indicate that the company’s liquid resources are insufficient to meet short-term obligations without additional funding or revenue inflows. The persistent negative net assets across two years suggest the business has either incurred losses or has not injected sufficient capital since incorporation.

The absence of employees implies a lean or possibly inactive operational setup, which could mean limited revenue generation. The financial statements are unaudited and prepared under micro-entity provisions, which limits the depth of financial disclosure but does not obscure the fundamental liquidity concerns.

Overall, the company’s financial 'vital signs' reflect symptoms of distress: inadequate working capital and negative equity, which, if unaddressed, could lead to insolvency risks.

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4. Recommendations

• Improve Liquidity: Seek to increase current assets, primarily cash or receivables, to surpass current liabilities. This could be through capital injection by shareholders or generating revenue promptly.
• Capital Injection: Consider equity funding to shore up the negative net assets and restore positive shareholder funds. This will strengthen the balance sheet and investor confidence.
• Operational Review: Examine business model viability given zero employees and small asset base. Determine if the company is generating sustainable revenue or requires restructuring.
• Cost Control: Maintain lean operations but ensure sufficient expenditure on growth or revenue-generating activities to break the cycle of negative equity.
• Regular Financial Monitoring: Implement monthly cash flow forecasting to catch liquidity issues early before they become critical.
• Seek Professional Advice: Engage a business turnaround specialist or financial advisor for tailored strategies to restore financial health.

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