Company Number: 14339055

Analysis Date: 2025-07-19 13:05 UTC

Financial Health Assessment Report for MICHALOGLAZA LTD
Assessment Date: June 2024

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1. Financial Health Score: B

Explanation:
MICHALOGLAZA LTD shows a generally sound financial position for a micro-entity in its first full year of operation. The company has positive net assets and a small but positive net working capital, indicating a stable base. However, given the small scale of operations, very limited asset base, and minimal liquidity buffer, there is not yet a strong margin of safety. Hence, a "B" grade reflects good health but also room for improvement in liquidity and capital resilience.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	2,219	Small fixed asset base typical of a start-up micro company.
Current Assets	1,463	Limited short-term resources; mainly cash/debtors.
Current Liabilities	1,344	Short-term debts almost equal current assets—tight liquidity.
Net Current Assets (Working Capital)	119	Positive but very modest buffer; indicates ability to cover short-term debts.
Total Assets Less Current Liabilities	2,339	Represents net operating resources after short-term debts.
Net Assets / Shareholders' Funds	2,339	Positive equity; company is solvent on a balance sheet basis.
Average Number of Employees	1	Micro-business scale with minimal payroll expenses.

Vital Sign Interpretation:
The company’s balance sheet shows a "healthy heartbeat" in terms of solvency (positive net assets) and a "stable pulse" in working capital. However, the "circulatory system" (cash flow and liquidity) is tight, with current assets only marginally exceeding current liabilities. This means the company must carefully manage cash flow to avoid liquidity distress.

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3. Diagnosis

MICHALOGLAZA LTD is a newly incorporated micro private limited company operating within specialized design and architectural activities. The financial statements indicate:

• Solvency: The company is solvent with net assets of £2,339, meaning it owns more than it owes. This "healthy baseline" suggests no immediate risk of insolvency.
• Liquidity: The net current assets of £119 indicate a very narrow liquidity margin. The company can cover its short-term obligations but has limited flexibility to absorb unexpected expenses or delays in payments from clients.
• Scale and Operations: With one employee and minimal asset base, the company operates on a very small scale typical of a start-up or sole director-managed business.
• Audit and Compliance: The company has taken advantage of micro-entity accounting exemptions, which is typical and appropriate for its size.
• Governance: The sole director and 100% owner, Mr. Michal Andrzej Oglaza, is actively managing the company with full control, which simplifies decision-making but also concentrates risk.

Underlying Business Health:
The business shows no "symptoms of distress" such as negative equity, overdue filings, or large liabilities. However, the limited liquidity is a "warning sign" to monitor closely, especially since the company is in a sector where project delays or client payment issues could strain cash flow.

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4. Recommendations

To improve financial wellness and build resilience, the company should consider:

1. Strengthening Liquidity:

   • Maintain a cash buffer to cover at least 3 months of operating expenses.
   • Monitor accounts receivable closely to reduce days sales outstanding.
   • Negotiate favorable payment terms with suppliers to optimize cash flow timing.

2. Revenue Growth and Diversification:

   • Explore additional contracts or design projects to increase turnover and build a more robust asset and equity base.
   • Consider strategic partnerships or marketing to widen client base.

3. Cost Control:

   • Keep overheads low to maintain positive net current assets.
   • Avoid incurring unnecessary short-term liabilities.

4. Financial Reporting and Planning:

   • Although exempt from audit, periodic internal reviews of financial performance and cash flow forecasts are advised.
   • Plan for future filings well ahead of deadlines to avoid penalties.

5. Risk Management:

   • Consider basic insurance (professional indemnity, public liability) to mitigate operational risks.
   • Maintain clear records and compliance to avoid regulatory issues.

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