MCGROARTY MEDIA SOLUTIONS LTD

Executive Summary

MCGROARTY MEDIA SOLUTIONS LTD shows solid early financial health with positive liquidity and net assets, typical for a young, service-based company. While there are no immediate financial distress signals, the company’s small scale and unaudited accounts suggest cautious monitoring and gradual enhancement of financial reporting and governance. With prudent management, the company is well-positioned to build a sustainable financial foundation.

MCGROARTY MEDIA SOLUTIONS LTD - Analysis Report

Company Number: 14549290

Analysis Date: 2025-07-20 13:30 UTC

Financial Health Assessment: MCGROARTY MEDIA SOLUTIONS LTD

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1. Financial Health Score: B-

Explanation:
MCGROARTY MEDIA SOLUTIONS LTD shows early-stage financial stability with positive net assets and net current assets, indicating a "healthy cash flow" and working capital for a young business. However, the absence of fixed assets and minimal turnover (implied by the small balance sheet) along with an unaudited abridged account limits visibility into operational profitability and scalability. The company is in its infancy (just over one year old), so the score reflects solid foundational health with caution due to limited financial depth and scale.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	0	No long-term assets; typical for a service-oriented or start-up company.
Current Assets	2,550	Includes cash (1,350) and debtors (1,200); positive short-term liquidity.
Current Liabilities	360	Low short-term liabilities; manageable in relation to current assets.
Net Current Assets (Working Capital)	2,550	Positive, indicating ability to cover short-term obligations comfortably.
Total Net Assets	6,329	Positive equity; the company is solvent and funded by shareholders.
Shareholders' Funds	6,329	Reflects retained profits or capital contributions; financially sound.
Employee Count	1	Small workforce, consistent with micro/small company classification.

Additional Notes:

• No audit required or performed, which is permitted for small companies but limits external verification.
• The company holds no tangible or intangible fixed assets, which may imply reliance on human capital and minimal capital expenditure.
• Positive cash on hand reflects "healthy cash flow" for immediate needs.
• The company is controlled entirely (75-100%) by one director/shareholder, which can streamline decision-making but also concentrates risk.

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3. Diagnosis

MCGROARTY MEDIA SOLUTIONS LTD’s financial "vital signs" reflect a young, lean company with a stable balance sheet and sufficient liquidity to meet its short-term obligations. The absence of fixed assets suggests the business is likely service-based (confirmed by SIC code 73110: Advertising agencies), with low capital intensity.

The net current assets and shareholders’ funds indicate no immediate financial distress or liquidity crunch — no "symptoms of distress" such as negative working capital or excessive debt. The low current liabilities compared to current assets show good short-term financial health.

However, as a newly incorporated company (since December 2022) with unaudited abridged accounts, it is too early to fully assess profitability, growth trajectory, or operational risks. The company's financial "immune system" is still developing, and it must build operational scale and revenue consistency.

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4. Recommendations

To strengthen financial wellness and ensure sustainable growth, consider the following actions:

• Enhance Financial Reporting: As the company grows, move towards full accounts with audit or review to provide stakeholders with greater transparency and confidence.
• Build Asset Base Prudently: Explore investing in fixed assets or intangible assets (e.g., software, intellectual property) to build long-term value and operational capacity.
• Monitor Cash Flow Closely: Maintain a healthy cash buffer and monitor debtor collections to prevent liquidity strain. Regular cash flow forecasts will act as a vital sign check-up.
• Diversify Revenue Streams: Develop multiple client relationships and projects to mitigate concentration risk inherent in a single controlling shareholder/director.
• Governance and Controls: Establish internal controls and consider appointing additional directors or advisors to strengthen governance and reduce single-person dependency risks.
• Plan for Growth: Set benchmarks for revenue and profitability as the company matures, tracking key performance indicators to catch early warning signs of financial distress.

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