YUMMY MUMMY 247 LTD

Executive Summary

YUMMY MUMMY 247 LTD is currently facing serious financial difficulties marked by negative net assets and working capital deficits, indicating an unhealthy financial condition. Immediate action to improve liquidity, secure capital injection, and control costs is essential to stabilize the business and improve its financial prognosis.

YUMMY MUMMY 247 LTD - Analysis Report

Company Number: 14517615

Analysis Date: 2025-07-20 12:34 UTC

Financial Health Assessment: YUMMY MUMMY 247 LTD

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1. Financial Health Score: D

Explanation:
The company currently exhibits significant financial distress, demonstrated by persistent negative net assets and net current liabilities over the last three financial years. This signals an unhealthy financial state, akin to a patient showing symptoms of chronic illness that require immediate attention. While the company is still active and compliant with filing deadlines, the continued erosion of equity and working capital places it in a vulnerable position.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	237	237	Very low liquidity; minimal short-term resources.
Current Liabilities	8,579	1,424	Increasing short-term debts, a symptom of cash flow strain.
Net Current Assets (Working Capital)	-8,579	-1,187	Negative working capital; unable to cover short-term debts with current assets.
Net Assets (Shareholders’ Funds)	-8,579	-1,187	Negative equity indicates liabilities exceed assets, a sign of financial distress.
Employee Count	0	0	No staffing costs, but possibly limited operational capacity.

Interpretation:

• The company’s current liabilities have increased significantly in 2024, while current assets remain nearly stagnant at a very low level. This mismatch creates a liquidity crunch, akin to a patient with low blood pressure and insufficient oxygen supply—indicating the business may struggle to meet immediate obligations.
• Negative net assets imply that the company's total debts exceed its total assets, which is a serious symptom of insolvency risk.
• Zero employees may suggest minimal operational activity; however, it can also mean limited revenue-generating capacity unless the company operates via contractors or outsourced models.

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3. Diagnosis

YUMMY MUMMY 247 LTD is currently in a financially precarious state. The persistent negative net assets and net current liabilities over multiple years are clear symptoms of financial distress. This condition suggests that the company has been operating with insufficient capital and may be reliant on external funding or shareholder support to continue. The absence of employees and very low current assets further highlight operational and liquidity challenges.

The change in directors and significant control shifting to a new director (Rebecca Thapa) during 2024 may indicate attempts to restructure or stabilize the company. However, without a turnaround in key financial metrics, the prognosis remains guarded.

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4. Recommendations

• Immediate Cash Flow Management:
  Focus on improving liquidity by either increasing current assets (cash or receivables) or reducing current liabilities. This could involve negotiating longer payment terms with creditors or accelerating collection from debtors.

• Capital Injection:
  The company needs fresh equity or shareholder loans to restore positive net assets and reduce insolvency risk. Engage the shareholders or external investors for capital support.

• Cost Control and Revenue Strategy:
  Evaluate operational expenses and the business model to identify opportunities for revenue growth or cost savings. Since there are no employees, assess if outsourcing or partnerships can enhance business scalability without heavy fixed costs.

• Financial Monitoring:
  Implement regular financial health checks and forecasts to catch symptoms early and adjust strategies proactively.

• Professional Advice:
  Given the negative equity and working capital issues, seek advice from financial and insolvency experts to explore restructuring options or safeguard against legal risks.

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