MAROOD ARCHITECTURE LTD

Executive Summary

MAROOD ARCHITECTURE LTD remains a solvent micro-entity with positive working capital but shows concerning signs of financial weakening, notably a significant drop in net assets and liquidity. Immediate attention to cash flow management, cost control, and capital strengthening is advised to restore financial health and support sustainable growth.

MAROOD ARCHITECTURE LTD - Analysis Report

Company Number: 13131461

Analysis Date: 2025-07-20 15:40 UTC

Financial Health Assessment for MAROOD ARCHITECTURE LTD

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1. Financial Health Score: C

Explanation:
The company shows moderate financial stability with positive net assets and working capital, but a sharp decline in net assets from the previous years signals emerging financial stress. The micro-entity nature and small scale limit complexity but also constrain cash flow and financial flexibility. Overall, this grade reflects a company currently solvent but showing symptoms that warrant attention to maintain health.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	1,406	1,178	Slight improvement in short-term liquid resources; healthy sign.
Current Liabilities	440	(4,547)	Reported as positive £440 in 2024, but negative (creditors) in 2023 and 2022 suggests possible restatement or classification issue. Needs clarification.
Net Current Assets (Working Capital)	966	5,725	Significant drop from prior years indicates reduced liquidity buffer; symptom of tightening cash flow.
Net Assets (Equity)	366	5,125	Sharp fall in net assets signals erosion of shareholder funds; critical symptom of financial distress.
Share Capital	100	100	Minimal capital base typical for micro-entity; limited buffer against losses.
Number of Employees	1	1	Very small operation; limited human resources and scale.

Interpretation of Vital Signs:

• Working Capital remains positive, indicating the company can cover short-term liabilities with current assets, but the reduction from £5,725 to £966 is a red flag, suggesting tighter liquidity.
• Net Assets decline from £5,125 to £366 implies accumulated losses or asset write-downs, which reduces financial resilience.
• The unusual reporting of current liabilities changing from negative to positive values between years requires detailed review; it may reflect accounting treatment or reclassification of items like creditors or accruals.
• The company remains solvent but with weakened equity and liquidity.

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3. Diagnosis

MAROOD ARCHITECTURE LTD presents symptoms of financial distress characterized by a rapid deterioration in net assets and working capital from 2023 to 2024. While the balance sheet remains positive, these trends indicate the company’s financial "vital signs" are weakening. The small scale and micro-entity status limit financial complexity but also restrict ability to absorb shocks.

The healthy cash flow indicated by positive current assets covering current liabilities is a positive sign; however, the sharp decline in equity and working capital suggests operating losses or possible reduction in receivables/assets value. The company’s ability to sustain operations may be challenged if these trends continue.

No signs of insolvency or overdue filings are noted, which is encouraging. The single director and employee structure indicates limited operational scale, common in early-stage or specialist architectural consultancy.

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4. Recommendations

• Immediate Financial Review: Clarify the changes in current liabilities reporting between years to ensure accurate creditor and accrual classification.
• Cost Control & Profitability: Investigate causes of reduced net assets; focus on improving operating profit margins and controlling overheads.
• Liquidity Management: Maintain and improve working capital by accelerating receivables collection and managing payables carefully.
• Capital Injection: Consider additional equity or shareholder loans to strengthen the capital base and buffer against losses.
• Strategic Growth: Explore opportunities to expand client base or diversify services to increase revenue and reduce financial strain.
• Regular Monitoring: Implement monthly financial reviews to track cash flow and key metrics, enabling early detection of financial stress.
• Engage Advisors: Seek professional financial or business advice to optimize financial controls and strategic planning.

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