F AND M CIVILS LIMITED

Executive Summary

F AND M Civils Limited shows a stable financial foundation for a newly established civil engineering company, with healthy liquidity and positive net assets. While the company is currently financially sound, attention to cash flow management and working capital optimization will be crucial to sustain growth and avoid liquidity risks. With prudent financial discipline and strategic planning, the company is well-positioned to build on its promising start.

F AND M CIVILS LIMITED - Analysis Report

Company Number: 14817724

Analysis Date: 2025-07-20 12:14 UTC

Financial Health Assessment: F AND M CIVILS LIMITED

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1. Financial Health Score: B

Explanation:
F AND M Civils Limited demonstrates a solid financial foundation for a newly formed construction company. The company shows healthy liquidity and positive net assets, indicating no immediate distress symptoms. However, as a start-up with just over one year of trading and modest asset base, there is room for improvement to reach an "A" grade, particularly by strengthening working capital and diversifying financing sources.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	78,665	Adequate short-term assets, including cash and receivables, supporting ongoing operations.
Cash at Bank	38,149	Healthy cash buffer reflecting positive cash flow or initial capital injection.
Debtors	40,516	Moderate receivables balance; timely collection critical to maintain liquidity.
Current Liabilities	39,459	Short-term obligations are significant but manageable relative to current assets.
Net Current Assets (Working Capital)	39,206	Positive working capital indicates the company can meet short-term liabilities comfortably.
Net Assets (Equity)	45,482	Positive net worth reflecting accumulated retained earnings and shareholder investment.
Tangible Fixed Assets	7,951	Investment in plant and machinery suggests operational capability in civil engineering.
Directors’ Loan	(£547) overdrawn	Small overdrawn balance indicates minor director borrowing; not a major concern yet.

Additional Observations:

• The company is exempt from audit, common for small entities, but this limits external verification of financial health.
• The company’s share capital is nominal (£100), typical for a new private limited company.
• Directors each own between 25-50% shares, indicating balanced control without dominant shareholder risk.

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3. Diagnosis: Financial Condition Analysis

F AND M Civils Limited is in the early "growth and establishment" phase, akin to a young patient showing stable vital signs but still needing close monitoring. The company’s positive net current assets and cash position are the "healthy pulse," indicating it can cover immediate debts and invest in operations. The small tangible asset base shows some investment in equipment, essential for the civil engineering sector.

The moderate debtor balance signals the need for efficient credit control to avoid liquidity strain—this is a potential "symptom of distress" if receivables aging is not managed well. The current liabilities, including amounts owed to group undertakings and tax liabilities, are balanced but require ongoing management.

The directors’ small overdrawn loan account is not uncommon but should be monitored to avoid potential cash flow "infections" that could worsen financial health.

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4. Recommendations: Steps to Improve Financial Wellness

• Enhance Cash Flow Management:
  Implement robust debtor collection policies to convert receivables into cash faster, maintaining healthy liquidity.

• Strengthen Working Capital:
  Negotiate better payment terms with suppliers to optimize cash outflows without compromising relationships.

• Build Capital Reserves:
  Consider modest capital injections or retained earnings reinvestment to strengthen net assets and cushion against sector volatility.

• Monitor Director Loans:
  Keep director borrowing minimal and well-documented to avoid conflicts of interest and preserve company solvency.

• Plan for Growth:
  Develop a financial forecast incorporating expected project pipelines to proactively manage resource needs and potential credit lines.

• Maintain Compliance:
  Keep accounts and confirmation statements timely and accurate to avoid penalties and maintain credibility with stakeholders.

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