CMD (N.I.) LTD

Executive Summary

CMD (N.I.) LTD maintains a stable and healthy financial position with strong liquidity and positive net assets typical of a well-managed micro-entity. Continued focus on cash flow management and strategic growth will support sustainable business health and future success.

CMD (N.I.) LTD - Analysis Report

Company Number: NI667798

Analysis Date: 2025-07-20 17:35 UTC

Financial Health Assessment of CMD (N.I.) LTD

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1. Financial Health Score: B

CMD (N.I.) LTD demonstrates a stable financial position with solid net assets and positive working capital. While the company is small and categorized as a micro-entity, it maintains a healthy buffer of net current assets relative to liabilities, suggesting good liquidity. The score of B reflects a generally sound financial state but with room for improvement in cash flow management and growth prospects.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£3,575	Low absolute cash and receivables; careful cash management needed
Current Liabilities	£18,736	Small liabilities consistent with business scale
Net Current Assets	£22,311	Indicates strong working capital; “healthy cash flow reserves”
Net Assets (Equity)	£21,311	Positive shareholder funds, showing retained profits and solvency
Share Capital	£1	Minimal initial investment; equity growth mainly from retained earnings
Average Employees	1	Very lean operation, low overheads
Account Category	Micro	Simplified reporting, small scale business

• Working Capital (Net Current Assets): The company’s net current assets have improved from £21,303 (2023) to £22,311 (2024), showing an ability to cover short-term obligations comfortably. This is a key sign of liquidity health — akin to a patient with a strong pulse.

• Net Assets Growth: Increased from £20,303 (2023) to £21,311 (2024), indicating retained earnings or capital injections, a sign of ongoing profitability or asset appreciation.

• Current Assets vs Liabilities: The current assets are relatively low but the net current assets figure is positive because current liabilities are shown as negative values (likely due to how the data is presented). The company appears to have more assets than liabilities when considering all current accounts, showing no immediate solvency concerns.

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3. Diagnosis – What the Numbers Reveal

CMD (N.I.) LTD is financially stable with no overdue filings or signs of distress. The company operates in the hairdressing and beauty treatment sector—a service industry with typically modest asset bases and cash flow cycles.

• Liquidity: The "healthy cash flow" analogy fits well here, as the company has sufficient liquid assets to meet immediate obligations, which reduces the risk of “financial shortness of breath.”

• Solvency: Positive net assets and shareholder funds indicate the company is solvent and has a cushion against potential downturns.

• Profitability and Retained Earnings: The growth in net assets despite minimal share capital suggests retained profits or capital reserves, showing the business can generate surplus beyond its initial funding.

• Size and Scale: Being a micro-entity with one employee means the company is small and likely owner-managed, which can be both a strength (agility) and a risk (limited diversification).

• Risk Factors: No flagged concerns such as overdue returns, director disqualifications, or negative equity.

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4. Recommendations for Financial Wellness Improvement

• Enhance Cash Reserves: While liquidity is adequate, increasing liquid cash or short-term assets could guard against unexpected expenses or seasonal downturns common in service industries.

• Diversify Revenue Streams: Explore complementary services or products within the beauty sector to reduce dependency on a narrow customer base.

• Formal Financial Planning: Implement budgeting and forecasting tools to anticipate cash flow needs—akin to regular health check-ups to catch early symptoms of financial stress.

• Review Debt and Credit Terms: Analyze current liabilities structure to optimize payment terms and reduce finance costs if any exist.

• Prepare for Growth: As the company matures, consider scaling operations carefully, potentially increasing workforce or investing in marketing to boost turnover while maintaining financial discipline.

• Maintain Compliance Vigilance: Continue timely filing of accounts and confirmation statements to avoid penalties and preserve reputation.

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Executive Summary

CMD (N.I.) LTD exhibits strong financial health for a micro-entity with solid net assets and good liquidity, reflecting a "healthy pulse" in its financial condition. The company’s sound solvency and stable working capital provide a robust foundation, though attention to cash reserves and strategic growth could further enhance resilience and long-term viability.