MACFEMA LIMITED

Executive Summary

MACFEMA LIMITED is financially healthy with strong liquidity and a growing capital base, demonstrating sound management for a micro-entity. The company’s positive net assets and current assets significantly exceed liabilities, signaling stable operations and no immediate financial distress. To further enhance financial wellness, transparency on profitability and proactive cash flow management are recommended.

MACFEMA LIMITED - Analysis Report

Company Number: 13147598

Analysis Date: 2025-07-20 18:24 UTC

Financial Health Assessment Report for MACFEMA LIMITED

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1. Financial Health Score: B

Explanation:
MACFEMA LIMITED demonstrates a solid financial footing with positive net assets and net current assets, indicating healthy liquidity and capital structure for a micro-entity. The company is growing steadily in asset value and maintains a positive working capital position. The absence of liabilities exceeding assets and proper compliance with statutory filings further supports this grade. However, the relatively small scale and limited financial complexity, combined with the absence of a profit and loss statement for deeper profitability analysis, suggest there is room for improvement towards an A grade.

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2. Key Vital Signs and Interpretation

Vital Sign	2024 Value	Interpretation
Net Current Assets	£50,007	Indicates strong liquidity; the company can cover short-term obligations comfortably.
Current Assets	£86,027	Healthy level of cash/debtors; positive for operational flexibility.
Current Liabilities	-£36,020	Current debts are well covered by assets, no immediate liquidity distress.
Net Assets (Shareholders Funds)	£50,007	Positive equity base; shareholders' funds have grown since incorporation, showing capital stability.
Share Capital	£2.00	Nominal share capital typical for a micro-entity, indicating minimal initial funding.
Employee Count	2	Small workforce consistent with micro-entity status; manageable payroll overhead.
Filing Status	Up to date	No overdue filings; good compliance and governance health indicator.

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3. Diagnosis: What the Financial Data Reveals

MACFEMA LIMITED exhibits the "vital signs" of a financially "healthy" micro business. The company holds a strong buffer of current assets over current liabilities, akin to a patient with a steady pulse and no signs of immediate distress. The increase in net assets from approximately £18k in 2021 to £50k in 2024 shows good capital growth, suggesting prudent management of resources and likely profitability despite the absence of detailed profit/loss data.

The current liabilities are modest and well-covered, indicating no symptoms of cash flow strain or over-leverage. The small but stable workforce supports the company's operational capacity without excessive financial burden. Compliance with filing deadlines further points to sound administrative health.

However, the lack of a detailed profit and loss statement (common in micro-entity filings) means that symptoms such as margins, profitability trends, and expense management cannot be fully assessed. The company should watch for potential hidden issues such as underreported expenses or reliance on a few clients, which could cause future vulnerabilities.

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4. Recommendations for Improving Financial Wellness

• Profit & Loss Transparency: Consider voluntarily preparing a simplified profit and loss overview beyond statutory micro-entity requirements. This will help detect early symptoms of profit erosion or margin pressures and improve stakeholder confidence.

• Cash Flow Monitoring: Maintain rigorous cash flow forecasting to ensure continued "healthy blood flow" of funds, especially if the company plans to scale operations or increase employee numbers.

• Diversify Revenue Streams: To prevent future financial distress, diversify clients or service offerings to mitigate risk from dependency on limited sources.

• Strengthen Capital Base: Explore options for modest capital injection or retained earnings to increase net assets, which will provide a stronger cushion against unexpected expenses or market downturns.

• Governance & Compliance: Continue timely filing of accounts and confirmation statements to avoid regulatory penalties, which are akin to preventing infections in a healthy body.

• Strategic Planning: Given the company operates in "Other business support service activities," staying abreast of industry trends and technological advances will help maintain competitive vitality.

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