MARTIN DODDY SERVICES LIMITED

Executive Summary

Martin Doddy Services Limited, a newly incorporated scaffolding company, exhibits a healthy financial position with strong liquidity and positive equity. The company is currently small-scale but demonstrates the financial stability necessary for growth. To enhance financial wellness, the focus should be on scaling operations, strategic investments, and maintaining prudent cash management.

MARTIN DODDY SERVICES LIMITED - Analysis Report

Company Number: SC790471

Analysis Date: 2025-07-29 20:53 UTC

Financial Health Assessment for MARTIN DODDY SERVICES LIMITED

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1. Financial Health Score: B

Explanation:
Martin Doddy Services Limited demonstrates a solid start with a positive net asset base and healthy working capital relative to its size and age. The company, incorporated recently in late 2023, shows no signs of financial distress or liquidity issues, which is commendable for a startup. The score B reflects a generally healthy financial condition but with limited operational history and modest asset base, leaving room for growth and improvement.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£519	Minimal investment in tangible assets typical for a service-oriented startup.
Current Assets (Cash)	£51,231	Strong cash position, indicating healthy liquidity—"healthy cash flow" reserve.
Current Liabilities	£28,374	Mainly taxation and social security, manageable for the company size.
Net Current Assets	£22,857	Positive working capital—company can comfortably cover short-term debts.
Net Assets (Equity)	£23,277	Positive equity reflecting owners’ funds and retained earnings, indicating solvency.
Share Capital	£2	Minimal equity capital, typical for small startup companies.
Employee Count	1 (Director)	Very small scale operation currently, with scope to expand.

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3. Diagnosis: What the Financial Data Reveals

• Liquidity (Vital Sign: Cash and Current Assets)
  The company holds a strong cash reserve (£51,231) with current liabilities well covered (£28,374). This is a sign of "healthy cash flow," meaning the business has no immediate liquidity problems and can meet short-term obligations without stress.

• Solvency (Vital Sign: Net Assets/Equity)
  Positive net assets (£23,277) indicate financial stability and that the company is not over-leveraged. The shareholders’ funds exceed liabilities, showing a sound capital structure for this stage.

• Asset Base (Vital Sign: Fixed Assets)
  The company has invested modestly in computer equipment (£519 net book value). This aligns with the nature of the business (scaffold erection) where fixed assets might not be heavily capital intensive initially.

• Operational Scale and Growth Potential
  The company is very new (incorporated Nov 2023) and currently operates with a single director/employee. This startup phase is typical, but operational scale is limited. The business will need to grow its workforce and invest in operational assets to expand.

• Tax and Compliance
  The current liabilities are primarily tax and social security obligations, which appear to be managed and timely. No overdue filings or penalties are noted.

• Ownership and Control
  Two persons hold significant control, each owning 25-50% shares, which supports balanced oversight and decision-making.

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4. Recommendations: Steps to Improve Financial Wellness

1. Build Operational Scale:
   Expand workforce and operational capabilities to increase revenue streams and spread fixed costs.

2. Invest Strategically:
   Consider investing in essential equipment or vehicles that can enhance service delivery and efficiency, balancing asset growth with liquidity.

3. Maintain Cash Reserves:
   Continue monitoring cash flow carefully to preserve the current liquidity "buffer," especially important in early growth phases.

4. Plan for Tax Obligations:
   Ensure timely management of tax liabilities to avoid accrual of social security and tax debts, which currently make up most of short-term liabilities.

5. Financial Reporting and Forecasting:
   Develop regular financial forecasts and budgets to anticipate cash needs and profitability milestones, supporting sustainable growth.

6. Risk Management:
   As the business grows, consider insurance and contractual safeguards relevant to the scaffold erection industry to mitigate operational risks.

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