MAX'S AUTOSERVICE LTD

Executive Summary

MAX'S AUTOSERVICE LTD demonstrates stable financial health with consistent profitability and positive working capital, typical of a well-managed micro-entity. While the business shows a steady operational "heartbeat," attention to expense control and working capital enhancement will improve resilience and support growth ambitions. Maintaining strong governance and financial planning will be key to sustaining this positive trajectory.

MAX'S AUTOSERVICE LTD - Analysis Report

Company Number: 12933509

Analysis Date: 2025-07-20 14:10 UTC

Financial Health Assessment for MAX'S AUTOSERVICE LTD
Date of Latest Accounts: 31 October 2024

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1. Financial Health Score: B

Explanation:
MAX'S AUTOSERVICE LTD exhibits stable and improving financial performance indicators typical for a micro-entity. The company maintains positive net assets and shareholder funds, with consistent profitability, albeit at modest levels. The "B" grade reflects a generally healthy financial status but with limited scale and some cautious signals regarding working capital reduction and turnover growth pace.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Turnover	82,743	80,631	Steady growth, indicates stable revenue generation
Profit for Period	2,123	2,112	Consistent modest profitability ("healthy heartbeat")
Current Assets	4,326	2,202	Increased liquidity but remains modest ("cash flow pulse")
Net Current Assets	4,326	2,202	Positive working capital, supports short-term obligations ("adequate breathing room")
Net Assets	3,828	1,706	Growing shareholder equity, indicating reinvestment and retained earnings ("building strength")
Staff Costs	13,648	12,600	Moderate expense relative to turnover; manageable labor costs
Cost of Materials	33,217	34,579	Slight reduction, improving gross margin potential
Other Charges	33,257	30,844	Increasing operating expenses may need monitoring

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3. Diagnosis: What the Financial Data Reveals

• Revenue and Profit Stability: The company shows stable and slight upward trends in turnover and profit, signaling a "steady pulse" in business operations typical of a small but viable enterprise in vehicle maintenance and related services.
• Liquidity and Working Capital: Positive net current assets indicate the company has "healthy cash flow" to cover its short-term liabilities. However, the relatively low absolute values suggest limited buffer against unexpected expenses or downturns.
• Capital Structure: Shareholders' funds have more than doubled over two years, reflecting retained earnings accumulation and financial strengthening. The minimal share capital (£1) is typical for micro-entities but means equity growth is primarily from profits.
• Expense Management: Staff and material costs are controlled relative to turnover, but the rise in other charges deserves monitoring to prevent "symptoms of financial stress."
• Scale and Growth: As a micro-entity with one employee, the company remains small and may face challenges scaling operations without additional capital or resources.
• Governance and Control: Complete ownership and control by one director (Mr Viorel Maxian) suggests streamlined decision-making but also concentration risk.

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4. Recommendations: Actions to Improve Financial Wellness

• Enhance Working Capital Management: Aim to increase current assets relative to liabilities to build a larger safety net. Consider strategies to accelerate receivables or manage payables efficiently.
• Monitor Operating Expenses: Conduct regular reviews of "other charges" to identify cost-saving opportunities without compromising service quality.
• Plan for Growth: Explore avenues to increase turnover beyond current modest growth, possibly through marketing, service diversification, or additional staffing. Scaling cautiously will improve financial resilience.
• Consider Formal Financial Planning: Implement budgeting and cash flow forecasting to anticipate financial needs and avoid liquidity crunches.
• Risk Mitigation: Given the concentration of control, consider advisory input or external oversight to strengthen governance and support strategic decisions.
• Maintain Compliance and Filing Discipline: The company is currently up to date with filings; continuing this discipline avoids penalties and maintains good standing.

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