MACDONALD TREE SERVICES LIMITED

Executive Summary

MACDONALD TREE SERVICES LIMITED demonstrates low financial risk based on available data, with solid net asset position and timely regulatory compliance. While its small size and short trading history limit comprehensive risk assessment, no immediate solvency or liquidity concerns are evident. Further investigation into operational cash flows and governance is advisable to confirm sustainability.

MACDONALD TREE SERVICES LIMITED - Analysis Report

Company Number: 14027461

Analysis Date: 2025-07-29 16:16 UTC

1. Risk Rating: LOW

The company exhibits a sound financial position with net assets significantly exceeding current liabilities, indicating solvency. Its micro-entity status and compliance with filing deadlines reduce regulatory risk. The stable employee count and asset growth suggest operational stability.

2. Key Concerns:

• Limited Financial History: With incorporation in 2022, only two full years of financial data are available, limiting trend analysis.
• Small Scale of Operations: Being a micro-entity with only two employees and modest asset base may restrict resilience to market shocks.
• Director Concentration: Single individual ownership and control could lead to governance risks without independent oversight.

3. Positive Indicators:

• Positive Net Current Assets: Current assets exceed current liabilities, indicating adequate short-term liquidity.
• Increasing Fixed Assets and Shareholders’ Funds: Growth from £13,500 to £28,900 in fixed assets and from £18,814 to £34,998 in equity over one year shows investment and retained earnings.
• Compliance: Up-to-date filings (accounts and confirmation statement) with no overdue returns or accounts.
• No Indications of Insolvency or Liquidation: Company status is active without signs of financial distress or regulatory non-compliance.

4. Due Diligence Notes:

• Verify nature and valuation of fixed assets to confirm they are productive and not obsolete.
• Assess cash flow statements and profit/loss data (not provided) to confirm operational profitability and cash generation.
• Review director’s background and governance practices to mitigate risks associated with single-person control.
• Monitor ongoing filing compliance given the company’s recent formation and growth phase.