MJV CONSULTANCY SW LIMITED

Executive Summary

MJV CONSULTANCY SW LIMITED is a very young micro-entity exhibiting typical financial characteristics of a startup with minimal assets and tight liquidity. While currently stable, the company’s financial health depends on building stronger working capital and cash flow as operations develop. Proactive financial management and gradual scaling will be key to maintaining and improving its financial condition.

MJV CONSULTANCY SW LIMITED - Analysis Report

Company Number: 15473367

Analysis Date: 2025-07-29 16:39 UTC

Financial Health Assessment of MJV CONSULTANCY SW LIMITED

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1. Financial Health Score: C

Explanation:
Given the company's very recent incorporation (February 2024) and the limited financial data available from its first accounting period, the financial health score is cautious. The business shows a positive but very modest net asset position with minimal working capital. While there are no alarming signs of distress, the company's financial "vital signs" are still in the very early stages of development and require monitoring as operations mature.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	3,431	Indicates available liquid resources like cash and receivables. Healthy for a startup.
Current Liabilities	3,285	Short-term obligations nearly equal to current assets, indicating tight liquidity.
Net Current Assets	146	Positive but minimal working capital suggests limited buffer for short-term expenses.
Net Assets (Equity)	146	Reflects shareholders’ funds; very low but positive, typical of a new micro-entity.
Number of Employees	1	Micro-sized operation, small overheads but limited scale.
Account Category	Micro	Simplified reporting regime; limited financial disclosure available.
Control Structure	Single PSC owning 75-100% shares and voting rights	Clear ownership with strong control, which can be good for swift decision-making.

Interpretation:
The "vital signs" show a startup with a very lean balance sheet and minimal net assets. The slight positive net current assets indicate the company currently has just enough short-term resources to meet its immediate obligations, which is a good sign but leaves little margin for unexpected expenses or downturns. The micro-entity status and one employee highlight a very small-scale operation, typical of a consultancy starting out.

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3. Diagnosis

MJV CONSULTANCY SW LIMITED is in the initial phase of its business lifecycle. The financial "symptoms" are consistent with a newly formed consultancy firm: minimal capital invested beyond initial setup, very limited assets, and just enough liquidity to cover immediate liabilities. There is no evidence of financial distress such as negative net assets or overdue filings. However, the company is operating with a very narrow working capital cushion, which could become a symptom of financial strain if revenues do not ramp up quickly.

The presence of a single controlling shareholder/director suggests strong governance but also concentration risk if business continuity depends heavily on this individual. The exemption from audit and use of micro-entity reporting provisions are appropriate but limit the depth of financial transparency.

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4. Recommendations

To improve financial wellness and establish a robust foundation for growth, the company should consider:

• Build Cash Reserves: Aim to increase current assets relative to current liabilities to create a healthier liquidity buffer. This could involve retaining earnings or injecting additional capital.
• Monitor Cash Flow Closely: Maintain "healthy cash flow" by carefully managing receivables and payables to avoid liquidity crunches.
• Develop Financial Reporting Beyond Micro-Entity Threshold: As the business grows, consider producing fuller accounts to provide stakeholders with better insights and to attract financing if needed.
• Diversify Control and Expertise: Although single control can be efficient, involving additional directors or advisors may improve governance and access to networks/resources.
• Plan for Growth: Invest in business development to expand client base, which will improve turnover and strengthen the balance sheet.
• Maintain Compliance: Continue to file accounts and confirmation statements on time to avoid regulatory penalties and maintain good standing.

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