MACMARTIN PROPERTIES LIMITED

Executive Summary

MACMARTIN PROPERTIES LIMITED demonstrates a strong liquidity position with healthy working capital but carries significant long-term debt relative to its minimal equity base, indicating careful monitoring is essential. While current finances are stable, attention to debt reduction and equity strengthening is recommended to ensure sustainable growth and financial resilience.

MACMARTIN PROPERTIES LIMITED - Analysis Report

Company Number: SC689770

Analysis Date: 2025-07-29 20:16 UTC

Financial Health Assessment Report for MACMARTIN PROPERTIES LIMITED

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1. Financial Health Score: C

Explanation:
The company shows a solid working capital base but with significant long-term liabilities relative to its net assets. The net assets have remained stable but minimal (£28,801), and the company's reliance on substantial non-current liabilities (loans or similar) signals moderate financial stress. The absence of fixed assets and limited equity suggest the company is in a fragile but stable position typical for a micro-entity in early years. Overall, the business is managing to sustain operations but must carefully monitor debt levels and asset growth.

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2. Key Vital Signs:

Metric	2024 Value	Interpretation
Current Assets	£465,931	Strong short-term asset base; healthy liquidity potential.
Current Liabilities	£6,742	Low short-term debt; manageable immediate obligations.
Net Current Assets	£459,189	Very healthy working capital; company can cover short-term debts easily.
Non-Current Liabilities	£430,388	Substantial long-term debt; potential risk if cash flows weaken.
Net Assets (Equity)	£28,801	Low equity base; limited cushion against losses.
Fixed Assets	£0	No long-term physical assets; reliance on current assets or intangible factors.
Share Capital	£1	Minimal paid-up capital; typical for a small startup.

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3. Diagnosis:

"Symptoms" Observed:

• The company exhibits a healthy cash flow symptom as reflected by strong current assets and net current assets. This indicates it can cover immediate expenses and short-term liabilities comfortably.
• However, a symptom of distress appears in the large amount of non-current liabilities relative to equity. The company is highly leveraged, which could pressure future cash flows, especially if business conditions deteriorate.
• The absence of fixed assets suggests the company may be asset-light or relying on leased premises/equipment, which can be both a strength (low capital expenditure) and a weakness (less collateral for lenders).
• Equity remains low but stable, which means the company has a slender buffer to absorb shocks or losses.

Underlying Business Health:
The business appears to be in a fragile but manageable state. It is maintaining operational liquidity but has a heavy debt load that needs careful servicing. The micro-entity classification and single employee indicate a small, possibly owner-managed enterprise in early growth or consolidation phase.

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4. Recommendations:

To improve financial wellness and reduce risk:

• Debt Management: Explore options to reduce non-current liabilities through refinancing, negotiating better terms, or partial repayment to ease future cash flow burdens.
• Asset Acquisition: Consider investing in fixed assets where appropriate to build tangible value and reduce dependency on short-term assets which may fluctuate.
• Equity Injection: If possible, increase shareholder funds to strengthen the equity base and improve the debt-to-equity ratio, providing a better safety margin.
• Cash Flow Monitoring: Maintain tight control over cash flows and working capital to ensure liquidity remains strong and to avoid any short-term distress.
• Growth Strategy: Evaluate opportunities for revenue growth or diversification to enhance profitability and build reserves, thereby improving net assets over time.
• Regular Financial Review: Implement routine diagnostic checks (quarterly or monthly) to detect early warning signs of financial stress and respond promptly.

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