Company Number: 12530681

Analysis Date: 2025-07-20 12:15 UTC

Financial Health Assessment for MAYFIELD PRACTICE SALES LTD

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1. Financial Health Score: B+

Explanation:
MAYFIELD PRACTICE SALES LTD exhibits solid financial health for a micro-entity, with steady growth in net current assets and shareholders’ funds over the past four years. The company maintains a strong liquidity position and a healthy balance sheet, indicating good financial stability. However, as a micro company with modest fixed assets and limited operational scale, there is room for improvement in asset utilization and working capital efficiency.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	2,965	Low level of long-term investments; typical for service-based micro-company.
Current Assets	203,752	Healthy level of liquid assets, indicating good cash or receivables.
Current Liabilities	92,003	Manageable short-term obligations, but should monitor for any sudden increases.
Net Current Assets	111,749	Strong positive working capital; “healthy cash flow cushion”.
Shareholders’ Funds	114,814	Positive equity growth, signaling retained earnings and capital injections.
Growth in Net Current Assets (2023-2024)	+132% approx.	Significant improvement, indicating strong operational cash management.
Average Employees	2	Very small team, consistent with micro company status.

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3. Symptoms Analysis

• Liquidity: The company shows "healthy cash flow" with net current assets more than doubling year-on-year, suggesting it can comfortably meet short-term liabilities. This is analogous to a patient with a strong pulse and stable vital signs.
• Asset Base: Fixed assets are minimal, fitting for a management consultancy. The firm relies more on current assets, likely cash and receivables, rather than physical assets.
• Equity Growth: Shareholders’ funds have risen from £2,831 in 2020 to £114,814 in 2024, a positive symptom reflecting retained profits and possible capital contributions.
• Leverage & Risk: With no indication of long-term liabilities or debt, the company shows no signs of financial distress or over-leverage.
• Scale and Capacity: Small employee numbers and micro-accounting classification suggest limited operational scale, which can be a constraint for rapid growth but also lowers fixed costs and risk.

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4. Diagnosis

MAYFIELD PRACTICE SALES LTD is financially "fit and stable." Its balance sheet reflects a company that has grown steadily without incurring undue liabilities. The large increase in working capital is a positive "symptom" indicating improved operational cash management or increased client receivables. The absence of audit requirements and the micro-entity status underscore the company's small scale but do not detract from its financial health.

No signs of "financial distress" such as negative working capital, declining equity, or escalating liabilities are present. The company is managing its resources well with sufficient equity and liquidity to absorb short-term shocks.

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5. Recommendations

• Monitor Cash Conversion Cycle: Despite strong current assets, ensure receivables are collected promptly to maintain liquidity and reduce risk of overdue debts.
• Asset Utilization Review: Explore opportunities to leverage fixed assets or invest strategically to support growth without compromising liquidity.
• Growth Planning: Consider scaling operations carefully by evaluating staff capacity and market demand, ensuring growth does not outpace financial resources.
• Financial Reporting: Maintain timely filings to preserve good compliance standing and investor confidence.
• Contingency Planning: Establish reserves or credit lines as a safeguard against unexpected downturns, despite current strong liquidity.
• Stakeholder Communication: Keep PSCs and directors informed of financial trends and potential risks to maintain governance robustness.

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