MAYRES TRADING LTD

Executive Summary

MAYRES TRADING LTD is demonstrating strong growth and stable liquidity, typical of a healthy early-stage business. Profitability is modest but positive, with no signs of financial distress. With focused improvements in cost control and cash flow management, the company can improve its financial resilience and support sustainable expansion.

MAYRES TRADING LTD - Analysis Report

Company Number: 13757821

Analysis Date: 2025-07-29 20:50 UTC

Financial Health Assessment: MAYRES TRADING LTD

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1. Financial Health Score: B

MAYRES TRADING LTD earns a solid B grade. The company demonstrates promising growth in turnover and maintains positive net assets with healthy working capital. However, profitability margins remain thin and the business is in an early growth phase, typical for a micro-entity. Continued focus on cost control and cash flow management will be critical to elevate financial health further.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Turnover	£212,261	Significant growth (+262%) from £58,635 in 2022, indicating strong sales momentum.
Profit for the Year	£7,894	Positive but modest profit; margin is approx. 3.7%, showing limited profitability.
Current Assets	£11,824	Healthy current assets relative to liabilities, indicating good short-term liquidity.
Current Liabilities	£0	No short-term creditors reported, a positive sign of no immediate debt pressure.
Net Current Assets (Working Capital)	£11,824	Positive working capital, suggesting ability to meet short-term obligations comfortably.
Net Assets (Equity)	£11,824	Positive net worth, growing from £2,430 in 2022, showing retained earnings and equity build-up.
Staff Costs	£42,831	New expense category in 2023, indicating investment in human resources for growth.

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3. Diagnosis: Financial Health Overview

MAYRES TRADING LTD's financial "vital signs" indicate an early-stage business with a healthy pulse and growing strength. The substantial increase in turnover is a key positive sign, akin to a patient showing improved energy and appetite after a period of weakness. The current assets comfortably cover any short-term liabilities, reflecting a stable liquidity position — no symptoms of cash flow distress are evident.

However, the profit margin remains thin relative to sales, reflecting potential symptoms of operational inefficiencies or high overhead costs. The introduction of staff costs and other charges suggests the business is investing in capacity, which is common in growth phases but requires close monitoring to prevent profitability decline. The absence of long-term liabilities and positive shareholders’ funds is reassuring, indicating no chronic financial ailments such as heavy indebtedness.

Overall, the company is in a stable condition but remains vulnerable to fluctuations in sales or cost increases. The financial health is robust for a micro-entity but not yet optimal.

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4. Recommendations

• Enhance Profit Margins: Review cost of materials and other charges to identify efficiencies or negotiate better supplier terms to improve gross margin.
• Monitor Cash Flow Rigorously: Maintain healthy working capital by tracking receivables and payables closely, ensuring no liquidity crunch occurs.
• Invest Strategically in Staff: Given staff costs are significant, focus on training and productivity improvements to convert labor investment into higher sales or efficiencies.
• Build Financial Reserves: Aim to increase retained earnings to build a buffer against unforeseen expenses or downturns.
• Consider Financial Planning: Prepare budgets and cash flow forecasts to anticipate financial needs and manage growth sustainably.
• Explore Revenue Diversification: Given the specialized retail sector (carpets and floor coverings), consider expanding product range or services to mitigate market risks.

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Executive Summary

MAYRES TRADING LTD shows a healthy growth trajectory with strong turnover increase and positive net assets, reflecting good financial vitality. Profit margins are currently thin, indicating room for operational improvements to enhance profitability. With careful cost management and strategic investment in staff, the company is well-positioned to strengthen its financial health in the coming years.