MASON BRENNAN GLEESON FRENCH LTD

Executive Summary

MASON BRENNAN GLEESON FRENCH LTD has shown a notable financial recovery over the latest year, moving from negative to positive net assets and working capital. The company's financial health is improving but remains delicate due to its small size and reliance on receivables. Focused cash flow management and debtor control will be essential to sustain this recovery and support future growth.

MASON BRENNAN GLEESON FRENCH LTD - Analysis Report

Company Number: 14078966

Analysis Date: 2025-07-20 17:58 UTC

Financial Health Assessment Report
Company: MASON BRENNAN GLEESON FRENCH LTD
Assessment Date: Financial year ended 31 March 2024

---

1. Financial Health Score: B-

Explanation:
The company shows significant improvement from the prior two years when it operated with negative net assets and working capital deficits — symptoms of financial distress. In the latest year, it has turned net current assets positive (£1,904) and net assets positive (£1,904), indicating a healthier balance sheet and improved liquidity. However, the absolute scale of these figures is very small, and the company remains in an early growth or recovery phase with limited financial buffer. This earns a "B-" grade reflecting recovery but caution due to size and volatility.

---

2. Key Vital Signs

Metric	Latest Year (2024)	Interpretation
Net Current Assets	£1,904	Positive working capital — healthy short-term liquidity.
Net Assets (Equity)	£1,904	Positive shareholders' funds — improved solvency.
Cash on Hand	£1,858	Reasonable cash reserves relative to liabilities.
Current Liabilities	£4,204	Manageable short-term debts but notable relative to assets.
Debtors	£4,250	Higher receivables suggest good sales but potential cash conversion risk.
Profit & Loss Reserve	£1,903	Positive reserve shows accumulated profits replacing prior losses.
Number of Employees	1	Very small company; limited operational scale.

---

3. Diagnosis

• Liquidity & Cash Flow:
  The company has transitioned from a liquidity "symptom" of distress (negative net current assets in 2022 and 2023) to a positive net current asset position in 2024. The cash balance increased substantially from £108 to £1,858, indicating improved cash flow management or possibly capital injection. This is akin to a patient whose vital signs have stabilised after a period of shock.

• Solvency & Capital Structure:
  The company’s net assets moved from a negative position (-£2,728) to positive (£1,904), indicating that accumulated losses have been reversed and the company is no longer technically insolvent. This is a key sign of recovery in financial health akin to a recovering organ function.

• Operational Scale and Business Risk:
  With only one employee and small asset base, the business is in a nascent or micro-company stage. This means it is vulnerable to external shocks and changes in client payments. The reliance on debtors (trade receivables) for liquidity indicates some risk if clients delay payment.

• Industry Context:
  Operating as barristers at law (SIC 69101), the company’s cash flow and profitability may be tied to client billing cycles and legal case progression, which can be variable. The small size suggests a boutique or sole practitioner model.

• Governance and Control:
  The single shareholder and director (Daryl John French) holds full control, which can be positive for swift decision-making but also concentrates risk in one individual.

---

4. Recommendations

• Strengthen Cash Reserves:
  Maintain or increase cash balances to weather client payment delays and unexpected expenses. Healthy cash flow is crucial for a small legal practice.

• Tighten Debtor Management:
  Implement rigorous credit control procedures to reduce debtor days and improve cash conversion. This will reduce liquidity risk.

• Monitor and Control Costs:
  With a single-employee structure, keep fixed costs low but monitor any growth plans carefully to avoid overextension.

• Plan for Growth Carefully:
  If expanding beyond a sole practitioner, ensure adequate capital and risk management to avoid returning to working capital deficits.

• Financial Reporting and Forecasting:
  Continue timely filings and develop rolling cash flow forecasts to anticipate liquidity needs and manage working capital proactively.

---

Medical Analogy Summary:

MASON BRENNAN GLEESON FRENCH LTD was previously in a state of financial distress, showing symptoms such as negative working capital and net assets, likened to a patient suffering from organ failure. Recent financial "treatment" has stabilized the condition, resulting in positive net current assets and equity, comparable to a recovering patient with restored vital signs. However, the company remains fragile due to its small size and concentrated control, requiring vigilant financial management to maintain and improve its financial wellness.

---