MYPROTEUS LIMITED
Company number 07304983 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Financial Health Score: C (Fair)
The company exhibits signs of stabilisation after a period of contraction, but liquidity pressure and low profitability are symptoms that need active management. Its overall solvency is adequate, yet the financial position lacks the resilience of a healthier business.
Key Vital Signs
| Metric | 2025 | 2024 | Interpretation |
|---|---|---|---|
| Net Assets | £1.23M | £1.22M | Stable but below the 2022 peak of £1.48M; equity is being maintained rather than grown. |
| Current Ratio | 0.84 | 1.02 | Current liabilities now exceed current assets – a classic symptom of working capital strain. |
| Debt-to-Equity Ratio | 2.77 | 3.52 | Leverage has improved, meaning the company is less reliant on debt relative to equity. |
| Cash at Bank | £530k | £452k | Slightly higher than last year, but still a fraction of the £2.25M held in 2022. |
| Implied Return on Equity | ~0.9% | – | Very low; the retained profit for the year was only about £11k, indicating weak underlying profitability. |
| Employees | 37 | 42 | Headcount reduction suggests possible downsizing or efficiency efforts. |
Diagnosis
The company’s financial health is stable but fragile. Positively, it has reduced total liabilities and improved its debt‑to‑equity ratio, and cash has edged up. However, the negative working capital (current liabilities exceed current assets by £315k) is a red flag – it means the company relies on long‑term debt or asset sales to meet short‑term obligations. The very low retained profit implies that the business is generating little surplus from its operations, and the declining total asset base (from £7.4M in 2022 to £4.6M in 2025) points to a contraction phase. The large investment in group undertakings (£3.0M) provides a potential buffer, but it also ties up capital that could otherwise support liquidity.
Overall, the company appears to be in a period of adjustment: debt is being paid down, but the operating engine is not yet generating enough momentum to restore a healthy working capital position or meaningful profit growth.
Recommendations
- Strengthen working capital – Accelerate debtor collection, review credit terms offered to customers, and negotiate extended payment terms with suppliers. Even a small improvement in the cash conversion cycle would ease liquidity pressure.
- Boost profitability – Conduct a margin analysis by service line or customer segment. Identify areas where costs can be reduced or pricing improved, and set clear profit targets.
- Review the investment portfolio – Assess whether the £3.0M held in group undertakings is earning an adequate return. Consider whether part of that investment could be restructured or realised to free up cash.
- Refinance long‑term debt – With gearing still above 100% of equity, explore options to extend maturities or secure lower interest rates, reducing the drag on cash flow.
- Build a cash reserve – Set a target cash buffer (e.g., three months of operating expenses) to provide a cushion against unforeseen shocks.
- Monitor headcount and productivity – Ensure that the reduction in employees is translating into cost savings without harming service delivery or revenue.