MACDOUGALL ARCHITECTURE LIMITED

Executive Summary

Macdougall Architecture Limited exhibits a stable working capital position and positive equity but has experienced a decline in net worth and current assets over the last year. The company’s small scale and early stage warrant conditional approval with focused monitoring on liquidity and profitability trends to mitigate credit risk. Continued oversight of provisions and cash management is advised to ensure financial resilience.

MACDOUGALL ARCHITECTURE LIMITED - Analysis Report

Company Number: 13207865

Analysis Date: 2025-07-29 13:57 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Macdougall Architecture Limited is a micro-entity operating in architectural services with two directors who appear actively involved in management. The company shows positive shareholders’ funds and net current assets, indicating a modest but positive financial base. However, the reduction in shareholders’ funds from £16,201 in 2023 to £9,307 in 2024 and a decrease in current assets raise concerns about profitability or cash retention. Given the company’s small size and limited financial history, approval is recommended with close monitoring of cash flows and profitability trends, especially as it is still relatively new (incorporated 2021).

2. Financial Strength:

• Shareholders’ Funds stand at £9,307 (2024), down from £16,201 (2023), showing a decline in net equity.
• Fixed assets are minimal (£3,896), typical for a service business with low capital expenditure.
• Current assets have decreased significantly from £41,260 to £31,503, while current liabilities remain stable around £11,700, resulting in net current assets of about £19,821, which still provides a reasonable short-term liquidity buffer.
• Provisions for liabilities remain substantial (£14,410), which may warrant inquiry regarding nature and timing.

3. Cash Flow Assessment:

• The company’s net current assets are positive, indicating adequate working capital to meet short-term obligations.
• The decline in current assets suggests cash or receivables have reduced, which may impact liquidity if the trend continues.
• No audit has been performed, so cash flow data is limited to balance sheet snapshots; absence of detailed cash flow statements restricts full liquidity risk assessment.
• Average employee count is low (2), implying limited fixed overheads, which supports cash preservation.

4. Monitoring Points:

• Monitor monthly cash flow and accounts receivable collections to ensure liquidity does not deteriorate further.
• Track profitability and reserves movements in the next financial year to confirm sustainability.
• Review provisions for liabilities to understand potential off-balance sheet risks.
• Confirm ongoing compliance with filing deadlines and governance standards given the small size and director involvement.