MICK GENNEY BUILDING LTD

Executive Summary

Mick Genney Building Ltd shows a strong financial condition with healthy liquidity and growing equity, reflecting good operational performance and prudent management. The company’s financial "vital signs" indicate no immediate distress, though growth is currently limited by a small asset base and workforce. To improve long-term financial wellness, strategic reinvestment and operational scaling are recommended.

MICK GENNEY BUILDING LTD - Analysis Report

Company Number: 13452629

Analysis Date: 2025-07-29 13:42 UTC

Financial Health Assessment for Mick Genney Building Ltd (As of 30 June 2024)

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1. Financial Health Score: B

Explanation:
The company demonstrates a solid improvement in financial strength over recent years, with significant growth in net assets and working capital. The balance sheet shows a strong liquidity position with a healthy margin of net current assets over current liabilities. However, the company is still relatively young and small (micro-entity), with limited fixed assets and modest capital base, suggesting there is room for strengthening long-term asset base and operational scale.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	25,304	Represents investment in long-term assets; slight decline from prior years may indicate limited capital expenditure or asset disposal.
Current Assets	194,428	Strong increase, mainly cash or receivables; suggests improved liquidity and operational cash flow.
Current Liabilities	58,395	Slight increase but manageable given current assets.
Net Current Assets (Working Capital)	157,037	Very healthy positive working capital, indicating the company can comfortably cover short-term debts.
Net Assets (Equity)	122,329	Significant growth from £45,653 in 2023; shows accumulated retained profits and financial stability.
Shareholders Funds	122,329	Mirrors net assets, confirming equity financing strength.
Average Number of Employees	1	Very small workforce; highly reliant on minimal staffing, which may limit operational scalability.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Healthy Cash Flow Indicated by Working Capital:
  The company has more than doubled its net current assets to £157k, reflecting a robust liquidity position. This is akin to a "healthy pulse," showing that the business generates sufficient short-term resources to meet its obligations without financial stress.

• Growing Equity Base Suggests Profit Retention:
  The net assets have increased almost three-fold in one year, indicating profitable operations or capital injections. This "strengthened heartbeat" signals growing financial resilience.

• Moderate Asset Base with Limited Fixed Assets:
  The fixed asset base has slightly decreased, which may imply limited reinvestment in property, plant, or equipment. This can be a symptom of a lean operation or a focus on service rather than capital-intensive activities, typical for small construction firms.

• Small Scale and Workforce:
  With only one employee (likely the director), operational capacity is constrained. This is similar to a patient with limited physical capacity; growth prospects may be limited unless resources are expanded.

• No Overdue Filings or Compliance Issues:
  The company is up to date with accounts and confirmation statements, indicating good governance and regulatory health.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Enhance Fixed Asset Investment:
  Consider strategic reinvestment in tools, equipment, or technology to improve operational efficiency and capacity, akin to "strengthening the skeleton" for business growth.

• Diversify Workforce or Outsourcing:
  To avoid operational strain and enable business expansion, explore hiring additional skilled staff or subcontracting work, improving "muscle mass" in business operations.

• Monitor and Manage Creditors:
  While current liabilities are manageable, ensure supplier payments and short-term debts are monitored to avoid cash flow "arrhythmias" or stress.

• Build Cash Reserves for Buffer:
  Maintain or grow cash reserves to cushion against market fluctuations or unexpected expenses, ensuring a stable "blood pressure" in finances.

• Plan for Growth and Scaling:
  Develop a strategic plan to expand market share or service offerings, setting goals for moving beyond micro-entity status, promoting sustained vitality.

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