MJPB BUILDING SERVICES LTD

Executive Summary

MJPB Building Services Ltd exhibits a sound financial position in its first year, with positive working capital and equity indicating good liquidity and capital structure. The company is well-placed for cautious growth but should focus on building reserves, diversifying management, and maintaining disciplined cash flow monitoring to ensure ongoing financial wellness.

MJPB BUILDING SERVICES LTD - Analysis Report

Company Number: 15127845

Analysis Date: 2025-07-20 11:25 UTC

Financial Health Assessment: MJPB BUILDING SERVICES LTD

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1. Financial Health Score: B

Explanation:
MJPB Building Services Ltd demonstrates a stable and sound financial footing in its inaugural financial year. The company maintains positive net current assets and shareholder equity, indicating healthy liquidity and capital structure. However, due to the company's very recent establishment and limited financial history, a cautious grade of B is appropriate until a longer operational track record is built.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,700	Low fixed assets typical for a new micro company.
Current Assets	11,266	Positive cash and short-term assets supporting operations.
Current Liabilities	5,963	Manageable short-term debts, not excessive.
Net Current Assets	5,303	Positive working capital indicating good liquidity "healthy cash flow".
Total Assets less Current Liabilities	7,003	Solid net asset position, showing more assets than debts.
Shareholders' Funds	7,003	Equity fully funds the company, no external debt seen.

Additional Context:

• The company is micro-sized, with one employee (the director) and minimal fixed assets.
• No overdue filings or compliance issues, indicating good administrative health.
• Control is concentrated within two individuals (50-75% and 25-50%), suggesting clear governance but potential risks if reliant on few key persons.
• The company operates in the specialised construction sector (SIC 43999), which can be capital intensive but here appears to be starting cautiously.

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3. Diagnosis (Financial Symptoms Analysis)

• Liquidity & Working Capital: The company shows "healthy cash flow" signs with net current assets (£5,303) nearly double its current liabilities. This implies the company can comfortably meet short-term obligations without financial stress.
• Capital Structure: Entirely equity financed at this stage, which is common for a newly formed entity. This "strong heartbeat" reduces financial risk but may limit growth capital for expansion.
• Profitability & Earnings: No explicit profit or loss figures provided, but the positive equity indicates no accumulated losses yet. The absence of audit suggests the company is small and early stage, so profitability metrics are limited.
• Operational Scale: With only one employee and low fixed assets, the company is currently in a startup phase with limited operational scale or asset investment.
• Governance: Concentrated ownership and control by the director and a close associate reduces complexity but could pose risks if key individuals become unavailable.
• Compliance: Up to date with accounts and confirmation statements, reflecting good corporate governance and regulatory compliance, "no symptoms of administrative distress."

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4. Prognosis (Future Financial Outlook)

Given the current financial health and operational scale, MJPB BUILDING SERVICES LTD is in a stable position to continue growing cautiously. The company’s liquidity and capital base provide a solid foundation to support initial business activities. However, growth will depend on increasing assets, scaling operations, and generating sustainable profits.

Potential challenges could include limited access to external funding and reliance on key individuals. Monitoring cash flow closely as the company grows will be essential to avoid "symptoms of financial strain."

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5. Recommendations (Prescriptions for Financial Wellness)

• Build Reserves: Gradually increase retained earnings to create a financial buffer against market fluctuations or unexpected expenses.
• Monitor Cash Flow: Maintain tight control over cash inflows and outflows to preserve liquidity, especially if scaling operations or investing in equipment.
• Diversify Management: Consider expanding key personnel or advisory roles to mitigate risks related to reliance on a small leadership team.
• Plan for Growth Capital: Explore financing options (e.g., small business loans, grants) to support asset acquisition or workforce expansion when appropriate.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Financial Reporting: Begin preparing management accounts and consider external audit or review as the company grows to provide transparency to stakeholders.

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