MATTHEW MASTERS TRANSPORT SOLUTIONS LTD

Executive Summary

Matthew Masters Transport Solutions Ltd demonstrates solid financial health characterized by strong liquidity and growing equity, typical of a well-managed micro-entity in the consultancy sector. While the company maintains a healthy balance sheet with positive working capital, expanding share capital and continued focus on profitability will further strengthen its financial resilience and support future growth.

MATTHEW MASTERS TRANSPORT SOLUTIONS LTD - Analysis Report

Company Number: 13230598

Analysis Date: 2025-07-29 14:43 UTC

Financial Health Assessment: MATTHEW MASTERS TRANSPORT SOLUTIONS LTD

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1. Financial Health Score: B

Explanation:
The company’s financials reveal a generally healthy balance sheet with positive net current assets and consistent growth in net assets over the last three years. The presence of healthy working capital ("net current assets") and rising equity ("shareholders funds") indicate good financial stability for a micro-entity. However, slight declines in fixed assets and relatively low share capital highlight areas for cautious monitoring. Overall, the company is financially sound but with room for further strengthening.

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2. Key Vital Signs: Critical Metrics & Interpretation

Metric	2024 Value (£)	Interpretation
Fixed Assets	12,398	Slight decline from prior year; stable but small asset base. Indicates reliance on minimal long-term assets.
Current Assets	30,607	Healthy increase, indicating improved liquidity or receivables management.
Current Liabilities	13,507	Increased compared to previous year but manageable given asset growth.
Net Current Assets (Working Capital)	17,542	Strong positive working capital shows ability to meet short-term obligations comfortably.
Total Assets Less Current Liabilities	29,940	Overall asset strength after short-term debts; growing steadily.
Net Assets / Shareholders Funds	29,940	Equity growth reflects retained earnings or capital injections, signifying financial health and solvency.
Share Capital	100	Minimal capital base; common for micro-entities but could limit funding capabilities.

Additional Observations:

• The company has maintained a single director and employee, indicating a small, tightly controlled operation.
• No overdue filings or signs of distress in regulatory compliance.
• The company operates in management consultancy, a service sector with typically lower fixed asset requirements.

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3. Diagnosis: What the Financial Data Reveals About Business Health

The financial "vital signs" suggest a company with a "healthy cash flow" and solid liquidity. The increasing net current assets show the company is effectively converting its current assets to cover short-term liabilities. This is akin to a patient with a strong pulse and stable blood pressure—signs of robustness.

The steady growth in net assets (equity) from £21,418 in 2021 to £29,940 in 2024 indicates the business is accumulating value and likely profitable or at least retaining earnings. The decline in fixed assets may reflect asset disposals or lack of new investment, which could be normal for the consultancy sector where intellectual capital outweighs physical assets.

However, the minimal share capital (£100) is a "low red blood cell count" that signals limited initial funding, which could constrain expansion or absorb shocks. The increase in current liabilities, while manageable, should be monitored to ensure it does not outpace asset growth.

Overall, the company shows no symptoms of financial distress such as negative working capital, losses eroding equity, or overdue statutory obligations.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Monitor Working Capital Trends:
   Continue to maintain or grow net current assets to ensure liquidity remains strong. Avoid excessive short-term borrowing that could strain cash flow.

2. Consider Increasing Share Capital or Reserves:
   Bolstering share capital or retained earnings can enhance the company’s financial "immune system," providing more buffer against downturns or enabling investment in growth opportunities.

3. Asset Management:
   Review fixed asset utilization and consider strategic investments if needed to support long-term business objectives or improve operational efficiency.

4. Profitability Focus:
   Ensure ongoing profitability or positive cash flow generation, as this will support equity growth and overall financial resilience.

5. Regulatory Compliance:
   Maintain timely filing of accounts and confirmation statements to avoid penalties and maintain good corporate standing.

6. Strategic Planning:
   Given the consultancy nature of the business, focus on client acquisition and retention strategies to sustain revenue streams.

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