CMC ACCESS SOLUTIONS LTD

Executive Summary

CMC Access Solutions Ltd demonstrates stable but minimal financial strength, with a tight liquidity position and low equity reflecting its micro-entity status and early-stage operations. While no immediate financial distress is evident, the company’s narrow working capital margin signals vulnerability to shocks. Proactive measures to increase financial buffers and grow revenue are recommended to ensure sustainable financial health.

CMC ACCESS SOLUTIONS LTD - Analysis Report

Company Number: SC686374

Analysis Date: 2025-07-29 20:21 UTC

Financial Health Assessment of CMC ACCESS SOLUTIONS LTD

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1. Financial Health Score: C

Explanation:
CMC Access Solutions Ltd exhibits a stable but fragile financial position. The company maintains a positive net current asset (working capital) position, but the margin is very slim, indicating a "borderline healthy" cash flow situation. Given its micro-entity status and zero employees, the company is at an early and vulnerable stage of business development. The financial "vital signs" reveal no acute distress but show symptoms of limited operational scale and minimal financial buffer.

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2. Key Vital Signs

Metric	Latest Year (2024)	Interpretation
Current Assets	£5,986	Represents short-term resources available to meet immediate obligations; modest but positive.
Current Liabilities	£5,860	Obligations due within one year; closely matched to current assets, indicating tight liquidity.
Net Current Assets (Working Capital)	£126	Positive but minimal buffer; "healthy pulse" but close to "critical" levels.
Shareholders' Funds (Equity)	£126	Shareholder investment and retained earnings; very low, reflecting early-stage business.
Share Capital	£100	Nominal share capital, consistent with micro-entity status.
Employees	0	No staff, indicating a likely sole proprietorship or director-managed operation.
Trends (2021-2024)	Stable net current assets (~£100-£126)	Consistent but minimal growth; indicates steady but constrained financial health.
Account Category	Micro	Limited financial activity and reporting; minimal complexity and risk.
Overdue Filings	No	Compliance with filing deadlines, indicating good governance discipline.

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3. Diagnosis

CMC Access Solutions Ltd is in a nascent stage of its lifecycle, operating with a very small asset base and minimal liabilities. The company's liquidity is marginally positive—a "stable heartbeat"—but the narrow net current assets reveal limited financial resilience. The absence of employees suggests a low operational footprint, possibly relying on the director's direct involvement or subcontracted work.

The financials show no signs of distress—no negative net assets, no overdue filings, and no significant liabilities beyond current obligations. However, the company's financial "immune system" is weak; there is little buffer to absorb shocks like unexpected expenses or revenue shortfalls.

Given the micro-entity classification and consistent but minimal net working capital, the company is financially stable but vulnerable to adverse changes. It is akin to a patient with stable vital signs but low reserves—requiring careful monitoring and proactive strengthening of its financial condition.

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4. Recommendations

To improve financial wellness and build resilience, the following actions are advisable:

• Increase Working Capital Buffer: Aim to increase current assets or reduce current liabilities to create a more comfortable margin for day-to-day operations. This reduces the risk of liquidity stress.

• Enhance Revenue Generation: Explore avenues for growing turnover to improve cash inflows and enable reinvestment in the business.

• Consider Capital Injection: Given the low equity base, an injection of funds (additional share capital or loans from the director) could bolster the financial "immune system."

• Establish Financial Controls: Maintain diligent bookkeeping and cash flow monitoring to preempt liquidity crunches.

• Plan for Growth: If expansion is intended, evaluate the need for hiring staff or engaging subcontractors, ensuring financial capacity to meet payroll and operational costs.

• Seek Professional Advice: Periodic financial reviews can help detect early "symptoms" of financial distress and facilitate timely interventions.

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Executive Summary