MCKECHAN DEVELOPMENTS LTD

Executive Summary

MCKECHAN DEVELOPMENTS LTD is currently a dormant company with minimal financial activity and nominal net assets, reflecting a low financial health score. While it is fully compliant with filing requirements and legally active, the absence of operational metrics limits its financial vitality. To improve financial wellness, initiating business activity or revisiting the company’s strategic purpose is recommended.

MCKECHAN DEVELOPMENTS LTD - Analysis Report

Company Number: SC683981

Analysis Date: 2025-07-29 20:34 UTC

Financial Health Assessment for MCKECHAN DEVELOPMENTS LTD

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1. Financial Health Score: D

Explanation:
MCKECHAN DEVELOPMENTS LTD is classified as a dormant company with minimal financial activity reported in its accounts over the last four years. The company has a nominal share capital of £1 and net assets of £1, indicating no operational transactions or growth. This results in a low financial health score due to the absence of active business metrics and cash flow, which are vital signs of a financially healthy company.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Status	Active	Company is registered and legally operating
Account Category	Dormant	No significant financial transactions during the financial year
Net Assets	£1	Minimal asset base, indicating no business activity or investments
Share Capital	£1	Nominal capital, typical for a dormant company
Filing Compliance	Up to date	Accounts and confirmation statements filed on time
Control Structure	Single PSC (Mckechan Holdings Ltd & Mrs Coila Mckechan)	Concentrated ownership and control
SIC Code	68100	Business activity classified as buying/selling own real estate

Interpretation:

• The company shows "symptoms" of dormancy, meaning it is not currently engaged in trading or investment activities.
• The absence of revenue, expenses, or asset growth signals that the company is in a resting phase or holding structure rather than an active commercial entity.
• Compliance with filing deadlines is a positive sign, showing good governance despite inactivity.
• Control is tightly held, which may indicate a holding or asset protection purpose rather than operational business.

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3. Diagnosis

Underlying Condition:
MCKECHAN DEVELOPMENTS LTD is essentially a dormant shell company with no operational cash flow, assets, or liabilities beyond the nominal share capital. This "financial flatline" means it is neither generating income nor incurring expenses, which in itself is not a sign of distress but rather of inactivity.

Business Health:

• The company is "alive" legally and compliant but not "active" commercially.
• There is no evidence of financial stress or growth potential from the current data.
• The company may be used for future projects or as a holding vehicle but currently contributes no economic value or financial momentum.

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4. Recommendations

For Improved Financial Wellness:

• Activate Business Operations: If the company’s purpose is to trade or invest, initiating commercial activities to generate turnover and build assets is critical to move from dormancy to a healthier financial state.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Review Purpose: If the company is intended as a holding or dormant vehicle, periodically reassess its utility and legal requirements to ensure it aligns with strategic goals.
• Consider Capital Injection: If activation is planned, consider increasing share capital or securing funding to support initial operations and asset acquisition.
• Monitor Market Conditions: For real estate activities (SIC 68100), monitor market trends to identify suitable times for asset acquisitions or sales to enhance net asset value.

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