Company Number: 13820042

Analysis Date: 2025-07-20 18:24 UTC

Financial Health Assessment for MAXIMUM TECHNOLOGIES LTD

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1. Financial Health Score: B

Explanation:
MAXIMUM TECHNOLOGIES LTD demonstrates a solid foundation for a micro-entity with improving liquidity and equity positions over the past two years. The company shows healthy net current assets and positive growth in shareholders’ funds, indicating operational stability and capacity to meet short-term obligations. However, given the company's young age (incorporated late 2021) and micro classification, limited scale and lack of extensive asset base moderate the overall score. Continued growth and diversification of assets will strengthen resilience.

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2. Key Vital Signs

Metric	2023 Value (£)	2022 Value (£)	Interpretation
Current Assets	52,021	34,799	Increase suggests improved cash or receivables—sign of stronger liquidity.
Current Liabilities	35,651	25,706	Increase reflects rising short-term payables; manageable given asset growth.
Net Current Assets (Working Capital)	16,370	9,093	Positive and growing working capital indicates a "healthy cash flow" and ability to cover debts.
Net Assets (Equity)	15,870	9,093	Equity growth reflects retained earnings or capital injection, indicating strengthening financial base.
Average Number of Employees	2	0	Growth in staffing shows business scaling, but still small operational footprint.
Overdue Filings	No	No	Compliance is current, indicating good governance and management discipline.

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3. Diagnosis

MAXIMUM TECHNOLOGIES LTD is in a generally healthy financial state typical of a young micro company in the IT consultancy sector. The "vital signs" indicate effective management of working capital, with current assets comfortably covering current liabilities, a key symptom of financial strength and liquidity.

The increase in net assets and shareholders’ funds signals either profitable operations or capital contributions, which provide a buffer against financial distress. The company’s un-audited micro-entity accounts and exemption from audit are consistent with its size but also mean less external scrutiny, so internal controls and accurate record-keeping are essential.

The modest size and asset base reflect early-stage growth, with only two employees and limited fixed assets reported. This is not unusual but suggests the company should monitor cash flow closely to avoid liquidity crunches as it scales.

There are no symptoms of financial distress such as overdue filings, negative working capital, or declining equity. Control is concentrated with a single director/shareholder, which simplifies decision-making but may pose risks if diversification of leadership or oversight is limited.

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4. Recommendations

1. Maintain and Monitor Liquidity:
   Ensure working capital remains positive and sufficient to handle operational needs. Consider establishing a cash flow forecast to anticipate peak expenditure periods.

2. Build Asset Base:
   Explore investment in fixed assets or intellectual property to enhance long-term stability and support growth initiatives.

3. Strengthen Governance:
   Although small, consider implementing periodic internal reviews or bringing in additional advisory support to provide oversight and broaden perspectives.

4. Plan for Growth:
   With employee numbers increasing, plan for scalable operational and financial systems to handle more complex transactions and reporting.

5. Risk Management:
   Diversify management responsibilities to reduce dependency on a single individual and mitigate operational risks.

6. Prepare for Future Audit/Reporting Requirements:
   As the company grows, anticipate moving beyond micro-entity thresholds to ensure readiness for more comprehensive financial reporting and audit processes.

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