LMCK JOINERY LIMITED

Executive Summary

LMCK Joinery Limited exhibits a stable financial condition typical of a start-up with positive working capital and adequate cash reserves, indicating healthy liquidity. With prudent management, the company is well positioned to grow its operations and strengthen profitability. Continued focus on cash flow, asset investment, and governance will be key to sustaining financial wellness.

LMCK JOINERY LIMITED - Analysis Report

Company Number: SC765283

Analysis Date: 2025-07-20 13:39 UTC

Financial Health Assessment for LMCK Joinery Limited

---

1. Financial Health Score: B

Explanation:
LMCK Joinery Limited, a recently incorporated private limited company operating in joinery installation, demonstrates a solid foundation after its first financial period. The company exhibits a positive working capital position and healthy equity base relative to its size. However, limited operational history and modest asset base limit the score to a "B" grade, reflecting a generally sound but still nascent financial condition.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	5,986	Represents readily available resources including cash and stock to meet short-term obligations.
Cash	4,364	Healthy cash balance given the scale of operations; indicates liquidity strength.
Current Liabilities	2,097	Obligations due within a year; manageable relative to current assets.
Net Current Assets	3,889	Positive working capital ("healthy cash flow") showing ability to cover short-term debts.
Total Assets less Current Liabilities	4,777	Strong net asset position relative to company size.
Shareholders’ Funds	4,777	Reflects equity invested plus retained earnings; indicates solid financial "vitality".
Tangible Fixed Assets	888	Modest investment in plant and machinery, consistent with a start-up in a trades business.

---

3. Diagnosis

Symptoms Analysis:

• The company shows no signs of financial distress; it has positive net current assets and shareholder funds, indicating a healthy balance between assets and liabilities.
• Cash reserves are adequate to meet immediate obligations, which is crucial for any young business to maintain operational stability.
• Tangible fixed assets are limited but appropriate for the nature of joinery installation work, suggesting prudent capital investment.
• The company is exempt from audit due to size but maintains compliance with filing deadlines, indicating good administrative health.
• The shareholder structure is evenly split between two individuals with control rights, which may promote stable governance but requires careful management of shareholder relations.

Underlying Business Health:

• The company's financial "pulse" is stable; early profitability is implied by positive retained earnings (£4,677), although detailed profit/loss data is not disclosed.
• Working capital is strong, implying good short-term financial resilience.
• The business is in an early growth phase, with a small employee base (average 1 employee), which reduces fixed overheads but may limit capacity expansion.

---

4. Recommendations

• Maintain Cash Reserves: Continue to monitor cash flow closely to ensure liquidity remains healthy, especially given limited operational history.
• Build Revenue and Profitability: Focus on expanding the client base and increasing turnover to strengthen retained earnings and improve long-term sustainability.
• Asset Management: Plan for gradual reinvestment in tools and equipment to support growth, while avoiding overextension of capital.
• Governance and Control: Ensure clear communication and decision-making protocols between the two major shareholders to prevent conflicts.
• Financial Reporting: Although exempt from audit, consider voluntary external review as the company grows to enhance credibility with lenders and suppliers.
• Risk Management: Develop contingency plans for potential market or supply chain disruptions given the company's start-up status.
• Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

---