COMASERVE CMS UK LIMITED

Executive Summary

COMASERVE CMS UK LIMITED exhibits strong liquidity with growing net assets and positive working capital, signaling a financially healthy and stable position. The company’s lean operations and robust cash reserves provide a solid foundation, though increased transparency and asset diversification could further enhance resilience and growth potential.

COMASERVE CMS UK LIMITED - Analysis Report

Company Number: 13099573

Analysis Date: 2025-07-20 15:00 UTC

Financial Health Assessment for COMASERVE CMS UK LIMITED

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1. Financial Health Score: B+

Explanation:
COMASERVE CMS UK LIMITED demonstrates a solid financial position characterized by healthy liquidity, positive net current assets, and consistent growth in shareholders’ funds over recent years. The company maintains a strong cash reserve and low liabilities relative to assets, indicative of robust operational stability. The score reflects good financial health with room for improvement in diversifying asset base and enhancing revenue transparency (as profit & loss details are abridged).

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	587,848	Healthy short-term asset base, increased since prior year — good liquidity.
Cash on Hand	395,729	Strong cash position—provides a stable "cash flow pulse" to cover immediate expenses.
Debtors	192,119	Moderate receivables level, manageable with current cash resources.
Current Liabilities	169,161	Low relative to assets, indicating manageable short-term debts.
Net Current Assets (Working Capital)	418,687	Positive and increasing, indicating a "healthy buffer" to meet short-term obligations.
Net Assets / Shareholders’ Funds	418,687	Growing equity base, reflecting retained profits and stable capital structure.
Share Capital	100	Minimal share capital; indicates company is primarily funded through retained earnings.
Employee Costs (Annual)	5,146	Very low payroll expenses, consistent with a micro/small company profile.
Staff Numbers	2	Small team, suggesting lean operations.

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3. Diagnosis: Financial Condition and Underlying Health

• Liquidity & Cash Flow:
  The company’s strong cash reserves (£395k) and positive net current assets (£419k) indicate a "healthy cash flow" situation, ensuring it can comfortably meet short-term liabilities (£169k). The increase in working capital year-on-year signals improving financial flexibility.

• Capital Structure & Solvency:
  Net assets have grown steadily from £270k in 2020 to £419k in 2024, showing consistent profit retention and no signs of financial distress. Low share capital (£100) suggests reliance on internal funding rather than external equity, which is typical for small private companies.

• Operational Efficiency:
  With only two employees and low payroll costs, the company operates with a lean cost base, which can be advantageous during economic fluctuations. However, this also means dependency on a small team which could be a risk factor if key personnel changes occur.

• Revenue & Profit Transparency:
  The abridged accounts do not disclose turnover or profit figures, which limits full diagnostic insight into operational profitability and revenue trends. However, the steady increase in retained earnings (profit & loss account balance) implies profitability.

• Industry Context:
  Operating under SIC code 43999 ("Other specialised construction activities not elsewhere classified"), the company is in a sector that can face cyclical demand and project-based revenue. The financial stability shown is a positive indicator of resilience in this environment.

• Compliance & Governance:
  Accounts and returns are filed on time with no overdue filings, reflecting good governance and compliance practices. Directors are in place with no known disqualifications, supporting sound leadership.

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4. Recommendations for Financial Wellness Improvement

1. Increase Financial Transparency:
   Consider filing full accounts or at least a detailed profit and loss account to provide stakeholders with greater insight into operational performance and profitability. Transparency can attract potential investors or lenders.

2. Diversify Asset Base:
   Currently, the company holds significant cash and debtors but no fixed assets are reported. Investing in productive fixed assets or technology could improve operational capacity and business valuation.

3. Strengthen Revenue Streams:
   Explore opportunities to expand client base or diversify services within construction specialities to reduce dependency on few projects and smooth income volatility.

4. Maintain Strong Working Capital Management:
   Continue to monitor receivables collection and manage payables to sustain positive working capital and avoid liquidity stress.

5. Risk Management Planning:
   Given the small team size, implement succession plans and cross-training to mitigate risks associated with key person dependency.

6. Strategic Capital Planning:
   While the company is well-capitalized internally, consider if external financing or equity injection might support growth initiatives without jeopardizing financial stability.

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