BURJMAC SOLUTIONS LTD

Executive Summary

BURJMAC SOLUTIONS LTD, a young management consultancy firm, presents a fragile financial profile with zero net assets and significant long-term creditor exposure. While current assets cover short-term liabilities, the lack of equity and profit data signals vulnerability. Immediate action to bolster equity and improve liquidity is essential to secure a healthier financial future.

BURJMAC SOLUTIONS LTD - Analysis Report

Company Number: 14563625

Analysis Date: 2025-07-20 15:38 UTC

Financial Health Assessment for BURJMAC SOLUTIONS LTD

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1. Financial Health Score: D

Explanation:
BURJMAC SOLUTIONS LTD displays several concerning financial indicators, especially its net asset position which is effectively zero due to matching current assets and liabilities but with a significant long-term creditor liability. The financial structure resembles a patient with "symptoms of distress" — while there is some short-term liquidity, the overall balance sheet shows a precarious position that needs careful monitoring. The absence of profit and loss data and the company's young age also make it difficult to fully assess operational health, but the existing data suggest financial fragility.

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2. Key Vital Signs (Financial Metrics & Interpretation)

Metric	Value	Interpretation
Current Assets	£150,000	Shows short-term resources available; positive sign
Current Liabilities	£150,000	Equal to current assets, indicating no net working capital
Net Current Assets (Working Capital)	£0 (Note: report shows £150k but liabilities present after current period)	No buffer for short-term operational needs; borderline liquidity
Creditors Due After One Year	£150,000	Significant long-term debt creating leverage pressure
Net Assets	£0	No shareholder equity; company is "breaking even" on balance sheet
Shareholders’ Funds	£0	No equity cushion; potential risk if losses occur
Turnover & Profit Data	Not disclosed	Lack of profitability data masks operational health
Company Age	1 year	Early stage; limited financial history for trend analysis

• Liquidity Status: The company has short-term assets exactly matching short-term liabilities, indicating minimal liquidity cushion. This is akin to a patient with a stable but weak pulse—no immediate danger but vulnerable to shocks.

• Solvency Status: The presence of £150,000 in long-term creditors without corresponding assets means the company relies on external financing. This is a "symptom of financial strain" and highlights risk in meeting long-term obligations.

• Capital Structure: No reported shareholders’ equity or profit reserves; the balance sheet shows zero net assets possibly due to offsetting liabilities. This is like having no immune system—there is no financial buffer to absorb losses or invest in growth.

• Company Size & Filing Status: As a small private company with exemption from audit, the financial disclosures are minimal, which limits diagnostic clarity.

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3. Diagnosis

BURJMAC SOLUTIONS LTD is in its infancy, incorporated less than two years ago, operating in management consultancy and financial management services. Its financial "vital signs" indicate a fragile position:

• The balance sheet reveals a neutral short-term liquidity position but a significant long-term creditor, suggesting reliance on debt financing.
• The absence of equity or retained earnings indicates the company may not have generated profits or capital injections sufficient to build a financial buffer.
• The company's financial condition resembles a patient who is stable but critically undernourished—any adverse event or cash flow variation could precipitate distress.
• The lack of turnover and profit data in the filings obscures operational profitability and cash flow health, key indicators that would clarify the business’s true financial wellness.

Overall, BURJMAC SOLUTIONS LTD is financially vulnerable. It has not yet built a robust foundation of equity or retained earnings, and its current asset-to-liability balance implies no margin for error in liquidity management.

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4. Recommendations

To improve its financial wellness and avoid financial distress, BURJMAC SOLUTIONS LTD should consider:

1. Strengthen Capital Base:

   • Seek equity investment or shareholder loans to create a financial buffer (akin to building immunity).
   • Avoid over-reliance on long-term creditor loans without equity support.

2. Enhance Liquidity Management:

   • Monitor cash flow closely to ensure current liabilities can be met without jeopardizing operations.
   • Build positive net current assets (working capital) by increasing short-term assets or reducing short-term liabilities.

3. Increase Transparency & Reporting:

   • Provide fuller financial disclosures including turnover, profit & loss accounts, and cash flow statements to better diagnose financial health.
   • Consider preparing audited accounts if growth triggers filing thresholds; transparency improves stakeholder confidence.

4. Operational Improvement:

   • Focus on generating sustainable revenue streams and profitability to build retained earnings.
   • Control costs rigorously to avoid cash flow shocks.

5. Risk Mitigation:

   • Develop contingency plans for financial shocks, such as delayed payments or unexpected expenses.
   • Regularly review creditor terms to avoid overextension.

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Medical Analogy Summary:
BURJMAC SOLUTIONS LTD is like a young patient with a stable but weak heartbeat—no immediate crisis but lacking vital reserves. Without intervention to strengthen its financial immune system (equity and retained earnings), the company risks financial collapse if a stressor hits.

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