MASTER CLEANING OXFORD LTD

Executive Summary

MASTER CLEANING OXFORD LTD has demonstrated a recovery from previous net liabilities to positive net assets, reflecting an improving financial condition. However, rising short-term liabilities and increased receivables highlight the need for careful cash flow management. With prudent financial controls and strategic scaling, the company is positioned for cautious but optimistic growth.

MASTER CLEANING OXFORD LTD - Analysis Report

Company Number: 13526989

Analysis Date: 2025-07-29 16:50 UTC

Financial Health Assessment for MASTER CLEANING OXFORD LTD (as of 30 June 2024)

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1. Financial Health Score: C

Explanation:
The company shows signs of emerging financial stability but remains vulnerable due to a modest asset base and limited profit reserves. Improvement from a previous net liability position to positive net assets is encouraging, but the scale and liquidity levels suggest cautious optimism rather than robust health.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Net Current Assets	719	Positive working capital indicates the company can cover short-term liabilities, a sign of "healthy cash flow" at a minimal level.
Cash at Bank and in Hand	1,885	Moderate cash reserves, improved significantly from last year, indicating better liquidity.
Debtors (Receivables)	2,079	Increase in amounts owed to the company; potential risk if collection is slow.
Current Liabilities	3,245	Current debts have increased sharply, suggesting growing short-term obligations.
Net Assets (Shareholders’ Funds)	719	Positive net assets show the company has moved out of a deficit, but the margin remains thin.
Profit and Loss Account	619	Accumulated retained earnings have turned positive, reflecting improved profitability or capital injections.
Employee Count	1	Very small workforce, typical for a micro/small enterprise, which limits operational scale.

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3. Diagnosis: What the Numbers Reveal

• Improving Financial Vitality: The company has moved from a net liability position (£-196 in 2023) to positive net assets (£719 in 2024), showing signs of recovery and better financial "vital signs." This suggests the business is gradually stabilizing after initial startup challenges.

• Liquidity Management: Cash reserves have increased nearly sixfold, signaling improved liquidity and a stronger ability to meet immediate obligations. The positive net current assets reinforce that the company currently has a "healthy cash flow" relative to its short-term debts.

• Rising Short-Term Obligations: Current liabilities have more than tripled in a year, primarily due to trade creditors and tax/social security liabilities. This "symptom of distress" could indicate either growing business activity or cash flow pressure, depending on payment terms and collection efficiency.

• Receivables Growth: Debtors have increased substantially, which could strain cash flow if collections are delayed. Efficient debtor management will be critical to avoid liquidity bottlenecks.

• Small Scale and Limited Resources: With only one employee and modest financial figures, the company operates at a very small scale, which limits its ability to absorb financial shocks or invest heavily in growth.

• No Audit Required: The company benefits from small company exemptions, but this also means less external scrutiny on financial controls and reporting.

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4. Recommendations: Path to Financial Wellness

• Enhance Cash Flow Monitoring: Maintain tight control over debtor collections to prevent overdue receivables from becoming toxic assets. Consider offering early payment incentives or negotiating payment terms with customers.

• Manage Creditors Proactively: Engage with suppliers and tax authorities to manage payment terms and avoid cash crunches. Prioritise payments to prevent penalties or supply disruptions.

• Build Financial Buffers: Aim to increase cash reserves beyond the current modest levels to create a safety net against unexpected costs or downturns.

• Scale Gradually: While maintaining lean operations, explore opportunities to increase revenue and diversify clients to strengthen the profit base and shareholder funds.

• Maintain Compliance and Reporting: Ensure timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with Companies House.

• Consider Professional Advice: As the company grows, periodic reviews by financial experts can identify risks early and support strategic planning.

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Medical Analogy Summary

MASTER CLEANING OXFORD LTD shows signs of recovering from its initial "financial illness," with improved liquidity and positive equity indicating a "healthy pulse." However, the rising short-term obligations and growing debtor balances are "symptoms of potential distress" that require vigilant cash flow management to avoid relapse. With careful monitoring and prudent management, the company's financial prognosis can improve towards greater stability and growth.

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