MASTER ENTERPRISE (BOLTON) LTD

Executive Summary

MASTER ENTERPRISE (BOLTON) LTD shows promising growth in assets but faces liquidity and leverage challenges. The company maintains positive equity but with a thin buffer, indicating financial vulnerability. Focused efforts on improving liquidity, managing debt, and strengthening equity will be essential to ensure long-term financial wellness.

MASTER ENTERPRISE (BOLTON) LTD - Analysis Report

Company Number: 14436860

Analysis Date: 2025-07-29 13:03 UTC

Financial Health Assessment for MASTER ENTERPRISE (BOLTON) LTD

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1. Financial Health Score: C

Explanation:
The company shows growth in fixed assets and net assets but exhibits signs of liquidity strain due to high long-term liabilities relative to assets. The modest positive net assets and shareholders’ funds indicate some equity cushion, but the limited current assets and substantial liabilities suggest financial vulnerability. Overall, the company is stable but with symptoms of financial stress that require management attention.

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2. Key Vital Signs

Vital Sign	Value (2024)	Interpretation
Fixed Assets	£270,175	Increased investment in long-term assets signals growth ambitions. Healthy sign if assets are productive.
Current Assets	£32,434	Relatively low current assets may limit short-term liquidity.
Current Liabilities	£2,295	Very low current liabilities, indicating good short-term debt management.
Net Current Assets (Working Capital)	£30,139	Positive, indicating the company can cover its short-term obligations comfortably.
Creditors Due After One Year	£289,269	Significant long-term liabilities, potentially a symptom of financial leverage or debt financing.
Net Assets (Equity)	£10,325	Positive but low net assets suggest limited equity cushion.
Shareholders Funds	£10,325	Mirrors net assets; equity base is positive but modest.
Average Number of Employees	NIL	No employees, indicating a lean operation or possibly a holding/management company.

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3. Diagnosis

"Patient" Analysis:

• The company’s asset base has increased significantly from £176,740 to £270,175 in fixed assets over the last reported year, showing active investment or acquisition of property or equipment relevant to its real estate management activities. This is a positive sign of growth and operational expansion.
• Current assets have decreased substantially from £91,299 to £32,434, which could indicate cash outflows or reduced liquid resources. However, current liabilities are minimal (£2,295), so short-term liquidity appears manageable.
• The large amount of creditors due after one year (£289,269) compared to net assets (£10,325) suggests a high reliance on long-term debt or obligations. This is a symptom of financial leverage and could be a warning sign if the company faces difficulties in servicing this debt.
• Net assets and shareholders’ funds are positive but thin, indicating that equity capital is modest relative to the liabilities. This could limit the company’s financial flexibility.
• No employees implies low operating costs but may also indicate limited operational capacity or that the company mainly manages real estate assets rather than active trading.
• The company is compliant with filing deadlines, which is a good sign of governance and regulatory health.

Underlying Symptoms:

• The company is in the growth phase with increasing fixed assets but faces potential liquidity risk due to reduced current assets and substantial long-term liabilities.
• Limited equity buffer suggests vulnerability to market downturns or unexpected expenses.
• Overall, the company’s financial “pulse” is steady but with underlying “symptoms of distress” related to leverage and liquidity management.

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4. Recommendations

• Improve Liquidity Reserves: Consider strategies to increase current assets, such as maintaining higher cash balances or quicker collection of receivables to strengthen the liquidity “immune system.”
• Manage Long-Term Debt: Review terms and structure of long-term creditors to reduce financial stress. Explore refinancing options or equity injections to reduce leverage.
• Build Equity Base: Retain profits or seek new capital injections to increase shareholders’ funds, improving the company’s financial resilience and ability to absorb shocks.
• Operational Efficiency: Since there are no employees, ensure that outsourcing or contracted services are cost-effective and aligned with business goals.
• Regular Financial Monitoring: Implement monthly cash flow forecasting and debt management reviews to detect early warning signs and intervene proactively.
• Strategic Asset Utilization: Ensure fixed assets are productive and generating adequate returns to cover debt servicing and operational expenses.

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