MJW SITE MANAGEMENT SOLUTIONS LTD

Executive Summary

MJW Site Management Solutions Ltd shows a positive turnaround in working capital and equity during the 2024 financial year, improving its financial resilience. However, cash reserves have decreased and current liabilities remain notable, suggesting liquidity management is critical. Conditional credit approval is recommended, contingent on ongoing monitoring of cash flow and debtor collections to ensure sustainable creditworthiness.

MJW SITE MANAGEMENT SOLUTIONS LTD - Analysis Report

Company Number: 12633671

Analysis Date: 2025-07-29 14:43 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   MJW Site Management Solutions Ltd is a small private limited company with a recent positive turnaround in its working capital position and net assets. The company shows improving net current assets from a deficit of £8,565 in 2023 to a positive £2,351 in 2024, reflecting better short-term liquidity. However, the company's cash balance declined from £9,950 to £7,441, and trade creditors remain substantial at £16,719. Given the limited equity base (£9,943) and modest scale of operations, credit approval is recommended on a conditional basis, subject to continued improvement in liquidity and timely payment of trade creditors.

2. Financial Strength:
   The balance sheet reveals modest fixed assets (£7,592), primarily motor vehicles and equipment, with depreciation reducing asset value. Shareholders’ funds increased from £1,558 in 2023 to £9,943 in 2024, indicating retained earnings growth and a strengthening equity position. The company’s net assets have improved, signalling better financial stability. However, the company remains relatively small in size with limited capital (£100 share capital), and current liabilities remain significant. The company operates within the small company exemption regime, and no audit is required, limiting external assurance.

3. Cash Flow Assessment:
   Current assets increased to £19,070 in 2024 from £16,304 in 2023, driven mainly by higher debtors (£11,629 from £6,354). While this indicates increased sales or billing, it also implies higher amounts tied up in receivables. Cash reserves decreased by approximately £2,500, which could pressure liquidity if receipts are delayed. The positive net current assets position is a notable improvement, but the company must manage cash collection efficiently to avoid liquidity strains. The working capital cycle should be monitored carefully to ensure the company can meet short-term obligations without resorting to overdrafts or external funding.

4. Monitoring Points:

• Monitor trade debtor aging and collection efficiency to ensure receivables convert timely into cash.
• Watch cash balances monthly to ensure liquidity remains adequate for operational needs.
• Track creditor payment terms and practices to avoid supplier disputes or credit holds.
• Review turnover and profitability trends as the company grows, to assess sustainability of earnings and cash flow.
• Keep an eye on any significant changes in directors’ conduct or company status filings.