GAC MACHINIST COMPANY LTD

Executive Summary

GAC MACHINIST COMPANY LTD, a recently formed micro-entity, shows sound financial health with positive working capital and minimal liabilities, indicating good short-term liquidity and operational stability. While the company is in its early stages with limited financial scale, prudent cash and growth management will be key to strengthening its financial wellness. Continued vigilance and strategic planning will help maintain this healthy trajectory.

GAC MACHINIST COMPANY LTD - Analysis Report

Company Number: 15218461

Analysis Date: 2025-07-20 16:26 UTC

Financial Health Assessment for GAC MACHINIST COMPANY LTD

---

1. Financial Health Score: Grade B

Explanation:
As a newly incorporated micro-entity with a modest asset base and positive net current assets, GAC MACHINIST COMPANY LTD shows early signs of financial stability and prudent management. The company exhibits a "healthy cash flow" position relative to its size, with net current assets exceeding liabilities, indicating adequate short-term liquidity. However, the financial footprint is still limited, reflecting the company's infancy and small scale of operations. This warrants a grade B—good financial health with room for growth and strengthening.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	2,320	Cash/resources readily available to meet short-term obligations. Modest but positive.
Current Liabilities	1	Minimal current debts, almost negligible.
Net Current Assets (Working Capital)	2,321	Positive working capital indicates "healthy cash flow" for day-to-day operations.
Total Assets Less Current Liabilities	2,321	Indicates total net assets available after settling short-term debts.
Net Assets / Shareholders’ Funds	2,321	Reflects owner's equity in the company; positive and stable.
Average Number of Employees	5	Small workforce consistent with micro-business scale.
Company Status	Active	Operating normally without distress signals.
Account Category	Micro	Subject to simplified reporting; typical for start-ups or small businesses.

---

3. Diagnosis: What the Numbers Reveal About Business Health

• Liquidity and Solvency: The company shows no symptoms of financial distress. The net current assets are positive, meaning it has enough liquid resources to cover short-term liabilities. This is akin to a patient having a steady pulse and normal blood pressure—good immediate health indicators.

• Scale and Growth Stage: As a micro-company incorporated in late 2023, its financial footprint is understandably small. The capital and reserves reflect initial share capital or early retained earnings. The company is in the early growth phase, where financial health depends heavily on operational cash flow and prudent cost management.

• Risk Factors: Limited financial data and no significant liabilities suggest low current risk. However, the small asset base means the company may have little buffer against unexpected shocks—like a young patient with a strong constitution but minimal reserves.

• Governance and Control: The sole director and majority shareholder is Mr. Kamil Olszanski, indicating centralized control. This can be efficient but also places responsibility squarely on one individual to maintain financial discipline.

---

4. Recommendations: Actions to Improve Financial Wellness

• Build Cash Reserves: Focus on accumulating cash or liquid assets to provide a buffer against unforeseen expenses or downturns. This will strengthen liquidity and reduce vulnerability.

• Monitor Working Capital Closely: Maintain positive net current assets through careful management of receivables, payables, and inventory to ensure ongoing "healthy cash flow."

• Plan for Growth: As the business establishes itself, consider scaling operations prudently. Keep an eye on credit terms and avoid overextension that could lead to financial strain.

• Regular Financial Reviews: Even as a micro-entity, periodic financial health check-ups (quarterly reviews) can help detect early "symptoms" of distress and allow timely intervention.

• Compliance and Reporting: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with regulators.

• Consider Diversifying Control: As the company grows, introducing additional directors or advisors can provide governance checks and strategic guidance, akin to consulting specialists for a comprehensive health plan.

---