MAC FIX AND CONSTRUCT LTD

Executive Summary

MAC FIX AND CONSTRUCT LTD is at an early stage of development, showing typical start-up financial strain with negative working capital and net assets. Immediate focus on capital infusion and cash flow management is critical to avoid liquidity crises. With strategic operational ramp-up and financial discipline, the company can progress towards a healthier financial position.

MAC FIX AND CONSTRUCT LTD - Analysis Report

Company Number: 15258453

Analysis Date: 2025-07-29 12:27 UTC

Financial Health Assessment for MAC FIX AND CONSTRUCT LTD

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1. Financial Health Score: D

Explanation:
The company currently shows a net liability position with negative shareholders’ funds and net current assets, indicating financial stress. As a newly incorporated micro-entity without employees and with minimal asset base, the financial “vital signs” suggest early-stage challenges in establishing a stable financial footing. The absence of profits or positive equity and the shortfall in working capital earn the company a grade D, reflecting caution but acknowledging the early stage of operations.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	2,379	Low cash and receivables; limited liquidity buffer.
Current Liabilities	7,866	Payables and short-term debts exceed liquid assets.
Net Current Assets	-5,487	Negative working capital; “symptom of liquidity distress”.
Net Assets (Equity)	-5,487	Negative equity means liabilities exceed assets; “sign of financial strain”.
Average Employees	0	No staff costs yet; very early operational phase.
Company Age	~1 year	Still in start-up phase; typical for early losses.

• Liquidity (Cash Flow Health): The company’s working capital deficit is a red flag for “poor cash flow health”. It suggests the company may struggle to meet short-term obligations without additional funding.
• Solvency (Balance Sheet Health): Negative net assets indicate the company’s obligations surpass its total resources, a “symptom of financial imbalance” that could threaten long-term viability if unaddressed.
• Operational Activity: No employees and no reported profits suggest limited trading activity so far, common for a company in its first year but requiring close monitoring.

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3. Diagnosis

MAC FIX AND CONSTRUCT LTD is in the early start-up phase of its business lifecycle, as evidenced by the recent incorporation date (November 2023) and micro-entity status with minimal filing requirements. The company is engaged in construction installation and domestic building, industries typically requiring upfront investment and steady cash flow management.

The financial “symptoms” reveal:

• Liquidity Concerns: Negative net current assets mean the company’s short-term debts are not currently covered by its liquid assets. This “cash flow distress” can impede day-to-day operations and supplier relationships.
• Capital Deficiency: Negative shareholders’ funds indicate that initial funding or retained earnings are insufficient to cover liabilities. This “capital weakness” may require infusion of equity or loans.
• Operational Immaturity: Zero employees and lack of reported profits point to a business still establishing its market presence and revenue streams.

Given these signs, the company’s financial health is fragile but not unexpected for a start-up construction firm. The presence of directors with control indicates governance is in place, but the company must address its financial foundation promptly.

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4. Recommendations

To move from “symptoms of distress” to “healthy financial condition,” MAC FIX AND CONSTRUCT LTD should consider the following actions:

• Improve Working Capital Management:

  • Negotiate extended payment terms with suppliers to ease immediate cash outflows.
  • Accelerate receivables collection if applicable.
  • Maintain a minimum cash buffer to cover short-term liabilities.

• Capital Injection:

  • Secure additional equity investment or shareholder loans to restore positive net assets.
  • Consider grant funding or start-up loans tailored for construction SMEs.

• Operational Development:

  • Begin hiring essential staff to kickstart operations and generate revenue.
  • Develop a robust sales pipeline to increase turnover and profitability.

• Financial Monitoring:

  • Implement monthly cash flow forecasting to anticipate liquidity challenges.
  • Engage an accountant to prepare management accounts for timely insights.

• Governance and Compliance:

  • Ensure timely filing of accounts and confirmation statements to avoid penalties.
  • Maintain clear records of director appointments and shareholdings for transparency.

By addressing these areas proactively, the company can stabilize its financial health and build resilience for growth.

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