MAYDON ENGINEERING SERVICES LTD

Executive Summary

MAYDON ENGINEERING SERVICES LTD demonstrates a healthy financial position with solid liquidity and solvency, reflecting strong growth from its early years. While the company is financially stable with positive net assets and working capital, it should continue prudent cash flow management and consider strengthening equity to support future expansion. Overall, the company’s financial health is good with a positive outlook if current practices are maintained.

MAYDON ENGINEERING SERVICES LTD - Analysis Report

Company Number: NI670538

Analysis Date: 2025-07-20 18:35 UTC

Financial Health Assessment Report: MAYDON ENGINEERING SERVICES LTD

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1. Financial Health Score: B

Explanation:
MAYDON ENGINEERING SERVICES LTD shows solid improvement in its financial position over the last year with healthy net assets and positive working capital. The company has established a good asset base and maintains a positive equity position. However, as a micro-entity with limited history and relatively modest scale, there is room to strengthen liquidity and operational resilience further before achieving an "A" grade.

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2. Key Vital Signs:

Metric	2024 Value	Interpretation
Fixed Assets	£49,130	Company has invested in tangible or long-term assets, indicating some capital formation.
Current Assets	£476,275	Strong short-term asset base, likely includes cash and receivables, reflecting liquidity.
Current Liabilities	£383,606	Short-term debts are significant but manageable given current assets.
Net Current Assets (Working Capital)	£92,669	Positive working capital—"healthy cash flow" symptom, enabling day-to-day operations.
Total Assets Less Current Liabilities	£141,799	Indicates assets exceed immediate liabilities, a good sign of solvency.
Net Assets / Shareholders Funds	£139,899	Positive equity position, showing owners’ residual interest after liabilities.
Average Employees	2	Small workforce consistent with micro-entity status; manageable operational size.
Share Capital	£1,000	Minimal equity capital, typical for small private companies.

Vital Signs Summary:
The company’s financial “pulse” is currently stable. Positive net current assets point to sufficient liquidity to cover short-term obligations, while net assets indicate solvency. The leap from negligible assets in prior years to a more substantial asset base signals expanding operations.

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3. Diagnosis:

• Liquidity: The company exhibits a healthy liquidity position with current assets comfortably exceeding current liabilities, suggesting it can meet its short-term debts and operational costs without distress.

• Solvency: The positive net assets and shareholders’ funds show the company is solvent and not over-leveraged. The increase in fixed assets reveals reinvestment in the business, possibly for growth or operational efficiency.

• Growth & Stability: The jump in net assets from £100 in 2023 to nearly £140,000 in 2024 indicates rapid growth or significant asset acquisition. This “new strength” symptom suggests the company is moving from infancy to a more stable and capable phase.

• Operational Efficiency: With only 2 employees, the company is lean, which can be an advantage for flexibility but may also limit capacity. It’s important that revenue generation matches this scale to maintain financial health.

• Risk Factors: The company is relatively young (incorporated in 2020) and categorized as a micro-entity, so financial history is limited. This infancy stage means external shocks or operational setbacks could impact financial stability more severely than for mature firms.

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4. Recommendations:

• Maintain Cash Flow Vigilance: Keep monitoring working capital closely to ensure liquidity remains strong, especially as the company grows or takes on larger projects.

• Strengthen Equity Base: Consider increasing share capital or retained earnings to build a more robust equity buffer against future uncertainties.

• Asset Utilisation Review: Evaluate the fixed assets’ productivity to ensure investments translate into revenue and profit growth, avoiding underutilised “capital stock.”

• Scale Workforce Prudently: Align employee numbers with operational demands to sustain efficiency without overextending costs.

• Prepare for Growth: Develop financial forecasting and budgeting processes to anticipate capital needs, cash flow fluctuations, and investment opportunities.

• Compliance & Reporting: Continue timely filings and consider enhanced financial reporting to attract potential investors or lenders, supporting planned expansion.

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Medical Analogy Summary:

MAYDON ENGINEERING SERVICES LTD is exhibiting signs of a recovering and strengthening patient. The "vital signs" such as liquidity and solvency are strong, indicating the company’s financial "heart" is beating steadily. However, as a young "patient," ongoing monitoring and care are essential to prevent symptoms of financial distress, such as cash flow shortages or over-leverage. With attentive management and prudent growth strategies, the prognosis is positive for sustained financial wellness.

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