MJM MASTIC POINTING LIMITED

Executive Summary

MJM MASTIC POINTING LIMITED displays modest financial health with positive liquidity but declining equity and no fixed assets, indicating cautious stability with underlying vulnerabilities. The company should prioritize rebuilding its asset base and strengthening profitability to enhance long-term viability. Ongoing financial discipline and strategic growth planning will be key to improving its financial wellness.

MJM MASTIC POINTING LIMITED - Analysis Report

Company Number: 12451816

Analysis Date: 2025-07-20 16:38 UTC

Financial Health Assessment for MJM MASTIC POINTING LIMITED

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1. Financial Health Score: C

Explanation:
The company shows signs of cautious survival with modest net assets and limited fixed assets but positive working capital. However, the absence of fixed assets and relatively low equity compared to earlier years indicate potential operational and investment constraints. The score reflects a stable yet fragile financial position typical of a micro-entity in a competitive industry.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	0	No long-term asset base; possible lack of investment in equipment or property.
Current Assets	17,079	Cash, receivables, and short-term resources available.
Current Liabilities	11,222	Short-term debts due within a year.
Net Current Assets (Working Capital)	5,857	Positive working capital indicates ability to meet short-term obligations.
Shareholders' Funds (Equity)	5,857	Low but positive; equity has decreased from £15,290 in 2020, showing erosion of retained profits.
Number of Employees	2	Very small workforce, typical of a micro business.
Account Category	Micro	Limited reporting requirements; small scale of operations.

Interpretation:

• The "healthy pulse" of working capital is present, which means the company can currently cover its short-term liabilities.
• However, the disappearance of fixed assets suggests the company may no longer own physical assets or equipment, potentially relying on rented or outsourced resources.
• The shareholders' funds have decreased significantly over four years, a symptom of either consistent losses or withdrawals, warranting further analysis if profit and loss data were available.
• The company's micro status implies it operates at a small scale, which aligns with modest financial figures.

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3. Diagnosis

The financial "symptoms" indicate MJM MASTIC POINTING LIMITED is a small, lean business with a basic but stable financial structure. The positive net current assets denote liquidity health, meaning it’s unlikely to face immediate cash flow distress. However, the shrinking equity and elimination of fixed assets over recent years signal possible underinvestment or asset disposals, which could impair long-term competitiveness and capacity.

The company’s strategic position may be vulnerable without physical assets or capital reserves to absorb shocks or invest in growth. The micro-entity status and a very small team suggest limited operational scale and potentially constrained revenue growth.

No signs of overdue filings or legal distress are present, which is a good indicator of compliance health and stable governance. Directors have maintained up-to-date accounts and confirmation statements, reflecting sound administrative discipline.

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4. Recommendations

• Strengthen Asset Base: Consider investing in essential fixed assets or capital equipment to build operational capacity and long-term value — akin to improving the “structural integrity” of the business.
• Monitor Profitability: Although profit and loss details are unavailable, the declining equity suggests reviewing profitability and cost management to stop “financial erosion.”
• Build Financial Reserves: Work towards increasing shareholders’ funds to create a buffer for unexpected expenses or downturns — a stronger “immune system” for financial shocks.
• Cash Flow Management: Maintain healthy working capital and monitor debtor days closely to ensure liquidity remains robust.
• Explore Growth Opportunities: As a micro business, assess potential for scaling operations or diversifying services to improve revenue streams and financial resilience.
• Regular Financial Reviews: Implement periodic financial health checks to catch early warning signs and adjust strategies proactively.
• Director Engagement: Directors should continue active oversight of financial and operational performance and consider seeking external advice if growth or restructuring plans are contemplated.

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