MJLAVOIE LTD

Executive Summary

MJLAVOIE LTD shows a healthy financial foundation typical of a newly incorporated micro private limited company, with positive liquidity and net assets. While current financial "vital signs" are stable, the lack of detailed profit data suggests the company is in an early developmental stage requiring ongoing monitoring. With careful management of cash flow, profitability, and governance, the company’s outlook is promising.

MJLAVOIE LTD - Analysis Report

Company Number: 15112301

Analysis Date: 2025-07-20 14:19 UTC

Financial Health Assessment for MJLAVOIE LTD

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1. Financial Health Score: B

Explanation:
MJLAVOIE LTD demonstrates a solid start with positive net assets and healthy working capital given its very recent incorporation (September 2023). While the company is still in its infancy, the balance sheet shows stability without signs of financial distress. However, the relatively modest scale of assets and liabilities, typical for a new micro-sized company, and the absence of profit and loss data for a full assessment, limit the score to a “B” — indicating good but early-stage financial health.

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2. Key Vital Signs (Core Financial Metrics)

Metric	Value (£)	Interpretation
Current Assets	19,762	Adequate short-term resources including cash and receivables, providing liquidity.
Cash at Bank	6,547	Positive cash balance, a healthy sign of available liquid funds for day-to-day operations.
Debtors	3,109	Moderate receivables; manageable but should be monitored for collection efficiency.
Current Liabilities	8,120	Short-term obligations that appear well covered by current assets.
Net Current Assets	11,642	Positive working capital, indicating the company can comfortably meet short-term debts.
Net Assets (Shareholders' Funds)	11,622	Positive equity base reflecting net value after liabilities, a healthy balance sheet foundation.
Share Capital	100	Nominal issued capital, typical of a micro company start-up.
Fair Value Reserve	86	Minor unrealized gains or losses on assets; stable at this stage.
Retained Earnings	11,436	Accumulated profits or reserves; for a new company, likely initial capital and retained inputs.

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3. Symptoms Analysis (What the Numbers Reveal)

• Healthy Cash Flow Indicators: Cash on hand and net current assets are positive, suggesting no immediate liquidity concerns. The company can pay its bills and short-term debts without stress, resembling a patient with a stable pulse and good hydration.

• Early Stage Asset Composition: The presence of investments worth £10,106 indicates some non-cash asset holdings, possibly strategic or operational assets. This can be compared to a patient having strong muscle mass but still developing endurance.

• Low Leverage and Risk: Current liabilities are moderate and comfortably covered by current assets, which is akin to a patient with low blood pressure and no signs of cardiovascular stress.

• Limited Operational History: Since MJLAVOIE LTD was incorporated recently and has filed abridged accounts without an income statement, we lack visibility on profitability or cash flow trends. This is similar to a new patient with limited medical history—stable for now, but requiring ongoing check-ups.

• Single Director and Sole Control: The company is fully controlled by Mr Maxime Lavoie, which simplifies governance but also concentrates risk. A sole decision-maker is like a patient relying on a single specialist—effective if competent, but vulnerable to single points of failure.

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4. Diagnosis: Overall Financial Condition Assessment

MJLAVOIE LTD is in solid financial health typical of a newly formed micro private limited company. The balance sheet shows a clean and positive position with no alarming symptoms of financial distress such as negative working capital, excessive liabilities, or cash shortages. The company’s "vital signs" are strong for its age, with good liquidity and equity.

However, the absence of detailed profit and loss information means we cannot yet assess operational profitability or cash flow sustainability. The financial "patient" is stable but still in the early phase of development, requiring continued monitoring to ensure growth and profitability.

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5. Prognosis: Future Financial Outlook

If MJLAVOIE LTD maintains careful management of cash flow and controls costs, its outlook is positive. The company’s current liquidity and equity base provide a healthy foundation to build on. As it matures, attention should be paid to:

• Generating consistent profits to build retained earnings (healthy "blood pressure" in financial terms).
• Managing debtor days to avoid cash flow tightening ("hydration" problems).
• Keeping liabilities in check to avoid over-leverage ("cardiovascular stress").
• Diversifying decision-making and governance to reduce single-person risk.

With prudent financial management and growth strategies, MJLAVOIE LTD can expect to strengthen its financial health and potentially achieve an "A" grade in future assessments.

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6. Recommendations: Specific Actions to Improve Financial Wellness

• Implement Detailed Profit & Loss Tracking: Begin tracking revenues and expenses rigorously to monitor profitability and identify any "symptoms" of operational inefficiency early.

• Enhance Cash Flow Management: Closely monitor receivables to ensure timely collections, maintaining a healthy cash buffer.

• Plan for Capital Needs: Assess whether additional funding or investment is needed to support growth without compromising liquidity.

• Strengthen Corporate Governance: Consider appointing additional directors or advisors to share decision-making and reduce concentration risk.

• Prepare for Audit and Full Accounts: As the company grows beyond micro or small thresholds, prepare for audited accounts and comprehensive reporting to enhance transparency and stakeholder confidence.

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