Company Number: SC708649

Analysis Date: 2025-07-29 18:26 UTC

Financial Health Assessment: CMR LIFT TECH LIMITED (as of 30 September 2024)

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1. Financial Health Score: B

Explanation:
CMR LIFT TECH LIMITED exhibits solid fundamentals for a micro-entity in its early years. The company shows positive net assets, healthy working capital, and consistent shareholder funds growth. The recent increase in fixed assets suggests investment in business capacity. While current assets have decreased from 2023, the net current assets remain comfortably positive, indicating a stable liquidity position. The presence of some long-term liabilities is a point for cautious monitoring but is not alarming. Overall, this company is financially stable with good growth potential, meriting a B grade.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	21,224	Increased investment in long-term resources, indicating business growth or capacity enhancement.
Current Assets	46,519	Sufficient liquid assets, though slightly decreased from 2023.
Current Liabilities	28,506	Payables due within a year; manageable relative to current assets.
Net Current Assets (Working Capital)	18,013	Positive and healthy, ensuring short-term obligations can be met comfortably.
Creditors due after 1 year	9,683	Some long-term liabilities; manageable but should be monitored.
Provisions for Liabilities	525	Minor provisions; no immediate red flags.
Net Assets / Shareholders’ Funds	29,029	Growth since 2023, reflecting retained earnings and capital infusion; good financial cushion.
Average Number of Employees	1	Micro-entity status with lean staffing, typical for its size.

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3. Diagnosis: What the Numbers Reveal About Business Health

• Healthy Cash Flow and Liquidity: The company maintains positive net current assets (£18k), meaning it has enough short-term resources to cover its short-term debts. This is a vital sign of liquidity "heart health," showing it can pay its bills on time.

• Growth in Fixed Assets: The substantial jump in fixed assets from ~£3k to over £21k indicates investment in equipment or machinery, consistent with its industry (installation of industrial machinery and equipment). This is akin to "building muscle mass" for the business, a positive sign of expansion or operational strengthening.

• Improved Net Asset Base: Shareholders’ funds have grown steadily from £163 in 2021 to over £29k in 2024, indicating accumulated profits or capital contributions. This "financial backbone" is strengthening, improving resilience.

• Manageable Long-Term Liabilities: The company has introduced creditors due after one year (£9,683) which represent longer-term obligations. While not excessive, these are "stress points" that require monitoring to avoid liquidity strain.

• Stable Workforce: With a single employee on average, the company is operating lean, which reduces fixed costs but may also limit operational capacity or scalability.

• No Overdue Filings or Compliance Issues: Up-to-date accounts and confirmation statements reduce regulatory risk, supporting financial confidence.

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4. Recommendations: Actions to Improve Financial Wellness

• Monitor and Manage Long-Term Debt: Keep a close eye on the repayment terms and cash flow impact of the long-term creditors to avoid liquidity crunches. Consider refinancing options if rates or terms become unfavorable.

• Optimize Current Assets: The decline in current assets from 2023 to 2024 suggests a potential tightening in liquidity. Investigate debtor collection efficiency and inventory management to ensure working capital remains robust.

• Plan for Workforce Expansion: As the company grows, assess the need to increase staffing to support operations without overextending financial resources.

• Maintain Capital Reserves: Continue building retained earnings to strengthen the equity base, which acts as a financial buffer during downturns.

• Strategic Asset Utilization: Ensure the new fixed assets are fully utilized to generate revenue, avoiding underutilization which can strain finances.

• Cash Flow Forecasting: Implement regular cash flow projections to anticipate periods of tight liquidity and plan accordingly.

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