MCLEAN PROJECT SERVICES LTD

Executive Summary

MCLEAN PROJECT SERVICES LTD presents a solid financial foundation in its initial year, with positive working capital and sound liquidity. While the company shows early signs of operational health, careful management of tax liabilities and cash flow will be critical to ensure sustainable growth. Proactive financial monitoring and strategic planning will support its progression from start-up to a robust enterprise.

MCLEAN PROJECT SERVICES LTD - Analysis Report

Company Number: 15111471

Analysis Date: 2025-07-20 11:26 UTC

Financial Health Assessment for MCLEAN PROJECT SERVICES LTD
Period Ending: 31 March 2024

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1. Financial Health Score: B

Explanation:
MCLEAN PROJECT SERVICES LTD demonstrates a sound financial footing for a newly incorporated company, reflected in positive working capital and shareholders' funds. The company is in the early stages of operation, showing healthy liquidity and no overdue filings, which contributes to a solid grade. However, the relatively low asset base and current liabilities, including significant tax and social security obligations, suggest room for growth and tighter cash flow management as operations scale.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	21,757	Healthy short-term resources, predominantly cash (20,794), indicating strong liquidity.
Current Liabilities	18,091	Obligations due within one year; includes significant taxation/social security (15,875), a typical early-stage "symptom" of start-up tax accruals.
Net Current Assets (Working Capital)	3,666	Positive working capital suggests the company has enough short-term assets to cover immediate debts, a key sign of operational liquidity health.
Total Assets Less Current Liabilities	5,050	Net assets indicate the company’s residual interest after settling short-term liabilities.
Shareholders’ Funds (Equity)	5,050	Equity entirely composed of retained earnings and share capital, reflecting initial capital injection and early profits or retained cash.
Fixed Assets (Net Book Value)	1,384	Modest investment in tangible assets (plant and machinery), typical for a new service business.
Debtors (Trade Receivables)	963	Low receivables reflect either early-stage sales or tight credit management.

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3. Diagnosis: Financial Health Insights

• Liquidity:
  The company exhibits a "healthy cash flow" symptom with cash reserves covering the majority of current liabilities. This liquidity buffer is critical in early operations to handle day-to-day expenses and tax payments.

• Capital Structure:
  The entire capital base is shareholder funds, with no long-term debt reported, implying a clean balance sheet without financial distress symptoms. The director’s personal investment and control indicate strong governance but also reliance on a single principal.

• Profitability and Growth:
  The absence of an income statement (exempted due to small company limits) limits the profitability analysis. However, retained earnings of £5,049 suggest some profit or capital injection since incorporation.

• Tax and Social Security Liabilities:
  A significant portion of current liabilities relates to taxation and social security, which is common in start-ups but requires careful cash flow planning to avoid "symptoms of distress" such as late payments or penalties.

• Operational Scale:
  With only one employee (the director) and limited fixed assets, the company is in a nascent stage, reflective of a "recovery room" phase with potential for scaling operations.

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4. Recommendations: Steps to Improve Financial Wellness

1. Cash Flow Management:
   Maintain strict monitoring of cash inflows and outflows, especially around tax liabilities, to prevent liquidity crunches.

2. Build Reserves:
   Aim to increase retained earnings through operational profitability or additional equity injections to strengthen the financial "immune system."

3. Credit Control:
   Ensure timely collection of trade debtors to avoid cash flow bottlenecks; consider setting clear credit terms as business expands.

4. Diversify Leadership Input:
   Consider appointing additional directors or advisors to enhance governance and strategic oversight, reducing dependence on a single individual.

5. Plan for Growth:
   Develop a roadmap for asset investment and hiring to balance growth ambitions with financial prudence, avoiding overextension.

6. Regular Financial Reviews:
   Schedule periodic financial health checks to detect early symptoms of financial strain and adjust strategies proactively.

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