MICHAEL ESSON MAXILLOFACIAL SERVICES LIMITED

Executive Summary

MICHAEL ESSON MAXILLOFACIAL SERVICES LIMITED demonstrates a sound financial foundation with positive net assets in its first year of operation. However, the negative working capital signals early liquidity challenges that require careful cash flow and working capital management to maintain financial wellness. With prudent financial controls and growth strategies, the company is well-positioned for a stable future.

MICHAEL ESSON MAXILLOFACIAL SERVICES LIMITED - Analysis Report

Company Number: 14720692

Analysis Date: 2025-07-20 16:28 UTC

Financial Health Assessment for MICHAEL ESSON MAXILLOFACIAL SERVICES LIMITED

---

1. Financial Health Score: B

Explanation:
The company shows a generally stable financial position for its first accounting period with positive net assets and shareholder funds. However, the presence of net current liabilities and a modest level of fixed assets relative to liabilities indicates some early-stage liquidity constraints. Given it is a micro-entity in its infancy, the business has a decent foundation but must carefully manage its working capital and cash flow to avoid distress symptoms.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	60,579	Reflects investment in long-term resources, healthy for a new specialist medical practice.
Current Assets	13,921	Short-term assets (cash, receivables); relatively low, indicating limited liquid resources.
Current Liabilities	15,228	Obligations due within one year; slightly higher than current assets, causing net current liabilities.
Net Current Assets (Working Capital)	-1,307	Negative working capital indicates a liquidity "symptom" that needs monitoring.
Net Assets (Total Equity)	55,517	Positive net worth signals overall financial stability and cushioning against losses.
Number of Employees	2	Small workforce consistent with micro-entity status; manageable overhead costs.

Interpretation:

• Healthy cash flow is critical, as the negative working capital suggests the company may face challenges meeting short-term obligations without additional cash inflows.
• The positive net assets and shareholders' funds indicate the company is solvent, with owners' equity backing the business.
• Investments in fixed assets underpin operational capacity, important in a specialist medical practice.

---

3. Diagnosis

The company currently exhibits signs of a stable but cautious financial health status. It is in its first financial year and has built a reasonable asset base while maintaining positive shareholders' equity. However, the negative net current assets (working capital deficit) is a symptom of potential liquidity strain, which could limit its ability to cover immediate bills without external support or improved cash inflows.

This is not uncommon for a new start-up specialist practice, where initial capital expenditure and operating expenses precede stable revenue streams. The absence of an audited profit and loss statement limits insight into profitability and cash generation capacity, but the balance sheet suggests the company is adequately capitalized for its size.

---

4. Recommendations

1. Improve Working Capital Management:

   • Accelerate collection of receivables and manage payables to ensure current liabilities do not exceed liquid assets.
   • Consider short-term financing options or overdraft facilities as a buffer to smooth cash flow.

2. Monitor Cash Flow Diligently:

   • Implement cash flow forecasting to anticipate liquidity needs and avoid distress symptoms like delayed payments or overdrafts.

3. Cost Control:

   • Keep overheads, especially employee-related costs, under close review as the company scales.

4. Revenue Growth Focus:

   • Enhance client acquisition and service delivery to increase turnover and improve current asset levels.

5. Prepare for Audited Accounts:

   • As the company grows beyond micro-entity thresholds or seeks external investment, audited financial statements will enhance credibility.

---