M A JOINERY & BUILDING LTD

Executive Summary

M A Joinery & Building Ltd displays a stable and improving financial position with positive working capital and equity for a young micro-entity. The company’s liquidity and solvency are healthy, but cautious growth and enhanced cash management are advised to strengthen resilience. Ongoing vigilance in financial planning and compliance will support sustained wellness and operational success.

M A JOINERY & BUILDING LTD - Analysis Report

Company Number: 13536722

Analysis Date: 2025-07-20 16:49 UTC

Financial Health Assessment for M A JOINERY & BUILDING LTD

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1. Financial Health Score: B

Explanation:
M A Joinery & Building Ltd demonstrates a solid financial footing for a micro-entity company just two years post-incorporation. The company exhibits positive net current assets and net assets, indicating a stable liquidity position and positive equity. However, as a small startup with a single employee and modest asset base, there is room for improvement in scaling operational cash flow and strengthening reserves to ensure resilience against business fluctuations. Hence, a grade of B reflects a generally healthy situation with opportunities for financial strengthening.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Current Assets	£14,516	Represents liquid resources such as cash and receivables; increased since 2022, showing improved liquidity.
Current Liabilities	£7,385	Short-term debts; manageable and less than current assets, indicating ability to cover near-term obligations.
Net Current Assets (Working Capital)	£7,131	Positive and more than doubled since 2022, signaling healthy short-term financial health and "breathing room."
Net Assets / Shareholders' Funds	£6,411	Positive equity indicates the company owns more than it owes, a key sign of solvency and financial viability.
Employee Count	1	Minimal staffing reduces overhead but may limit operational capacity and growth potential.
Company Age	2 years	Early stage with foundational financial strength but requires continued monitoring as it scales.

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3. Diagnosis: Financial Health Insights

• Healthy Cash Flow Indicators: The company’s net current assets of £7,131 show it has more current assets than liabilities, which is akin to a patient with a stable pulse — it can meet upcoming short-term financial obligations without stress. The increase from £2,931 in 2022 to £7,131 in 2023 reflects improved liquidity and operational efficiency.

• Strong Equity Position: Net assets of £6,411 demonstrate that the company has built up shareholder equity since inception. This equity acts like a financial "immune system," providing a buffer against shocks or downturns.

• Micro-Entity Status Benefits and Risks: As a micro-entity, M A Joinery & Building Ltd benefits from simplified reporting and lower administrative costs, conserving resources. However, this also means the company’s financial "immune system" is still developing, with limited reserves and scale.

• Single Director and Employee: The concentrated control and small headcount reduce complexity but may present risks in operational continuity and strategic diversity. The director’s active involvement as a builder is a positive symptom indicating hands-on management.

• No Overdue Filings and Compliance: The company is up-to-date with accounts and confirmation statement filings, reflecting good administrative health and regulatory compliance.

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4. Recommendations: Actions to Enhance Financial Wellness

• Build Cash Reserves: Aim to increase liquid cash reserves beyond current levels to cushion against unexpected expenses or seasonal downturns—a stronger financial "immune system."

• Monitor and Manage Working Capital: Continue close oversight of receivables and payables to maintain positive working capital and avoid liquidity "symptoms" like delayed payments or cash shortages.

• Plan for Growth and Diversification: Consider incremental staff additions or subcontractors to increase operational capacity, reducing risk tied to single-person dependency.

• Forecast Financials Regularly: Implement rolling cash flow forecasts to anticipate future funding needs and avoid financial "fevers" or crises.

• Explore Funding Options: If growth is targeted, evaluate financing opportunities such as small business loans or grants to support investment without over-leveraging.

• Maintain Regulatory Compliance: Keep timely filings and transparent records to avoid penalties or reputational risk, maintaining the company's "health certificate."

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