M.C JOINERS AND BUILDING CONTRACTORS LTD

Executive Summary

M.C JOINERS AND BUILDING CONTRACTORS LTD is a newly formed micro-entity displaying a modest but positive liquidity and financial position typical of a start-up in the joinery sector. While current assets exceed liabilities, the limited equity base and short trading history warrant a cautious credit approach with conditions. Close monitoring of cash flow and operational performance will be essential to support ongoing credit.

M.C JOINERS AND BUILDING CONTRACTORS LTD - Analysis Report

Company Number: SC779674

Analysis Date: 2025-07-20 17:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   M.C JOINERS AND BUILDING CONTRACTORS LTD is a newly incorporated micro-entity engaged in joinery installation, with modest net assets (£598) and positive net current assets (£1,078). The company’s current short-term liquidity position is adequate to meet immediate liabilities. However, given the company's infancy (incorporated in August 2023) and limited financial history, the credit exposure should be cautiously managed. Approval is recommended with conditions including close monitoring of cash flow and timely filing of future accounts and returns. The directors’ direct involvement as carpenters suggests hands-on management, albeit with no extensive financial track record available.

2. Financial Strength
   The balance sheet shows total current assets of £4,337 against current liabilities of £3,259, resulting in a positive working capital of £1,078. Total net assets stand at £598, reflecting minimal equity base typical for a startup micro-entity. There are no long-term liabilities or fixed assets disclosed, indicating limited financial leverage and asset backing. The capital structure is purely equity-based, with shareholders’ funds mirroring net assets. Overall, the financial position is weak but stable for a start-up, with limited buffer to absorb financial stress.

3. Cash Flow Assessment
   Current assets primarily consist of cash and receivables sufficient to cover near-term liabilities, indicating reasonable liquidity. The positive net current assets imply the company can meet its short-term obligations as they fall due. However, the very modest working capital and low equity base highlight the need for efficient cash management to sustain operations and fund growth. The company employs two staff, which suggests some operational scale but also ongoing cash flow demands. There is no historical cash flow data yet, so ongoing liquidity monitoring is critical.

4. Monitoring Points

• Timely submission of next annual accounts and confirmation statements.
• Cash flow trends as the company progresses beyond its first full financial year.
• Changes in current liabilities and working capital, particularly any build-up of overdue payables.
• Directors’ ability to grow revenue and maintain profitability to strengthen equity.
• Any additional borrowing or capital injection requirements.
• Management of customer payment terms and supplier relationships to sustain liquidity.