MK BUSINESS SOLUTIONS AND SERVICES LTD

Executive Summary

MK BUSINESS SOLUTIONS AND SERVICES LTD is financially solvent with positive net assets and working capital but operates at a very small scale with fragile liquidity. The company shows no immediate distress but should focus on improving cash reserves, increasing business activity, and strengthening its equity base to ensure sustainable growth and resilience.

MK BUSINESS SOLUTIONS AND SERVICES LTD - Analysis Report

Company Number: 12630974

Analysis Date: 2025-07-29 16:50 UTC

Financial Health Assessment for MK BUSINESS SOLUTIONS AND SERVICES LTD
(as at 31 May 2024)

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1. Financial Health Score: C

Explanation:
The company shows positive net current assets and net assets, indicating an overall healthy liquidity position and solvency at a snapshot in time. However, the absolute size of assets and cash is very small (£1,980 current assets, £180 cash), and the company has minimal operational scale as indicated by zero employees. The absence of significant revenue or profit data and reliance on debtors that are relatively high compared to cash suggests some underlying risk and limited operational robustness. Therefore, a grade C reflects a company that is financially stable but with symptoms of limited scale and uncertain sustainability.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	1,980	Small asset base; mainly debtors (1,800)
Cash	180	Very low cash reserves; limited liquidity buffer
Current Liabilities	357	Manageable short-term obligations
Net Current Assets	1,623	Positive working capital indicates short-term financial health
Net Assets	1,623	Equity exceeds liabilities; solvent
Share Capital	51 (or 100 per Notes)	Minimal capital invested; low financial cushion
Employees	0	No staff; business may be owner-operated or dormant
Operating Activity	Not explicitly reported	Financials suggest limited trading activity or low revenue generation

Interpretation of Vital Signs:

• Healthy cash flow analogy: Cash on hand is like the bloodstream of the company, and here it is very low relative to liabilities and debtors, indicating a fragile liquidity state.
• Symptoms of distress: High debtors with very low cash might mean slow customer payments or reliance on credit which could impair cash flow.
• No employees: suggests the company may be service-based with minimal overhead or potentially inactive operationally, which can impact growth prospects.

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3. Diagnosis

The financial snapshot shows MK BUSINESS SOLUTIONS AND SERVICES LTD is currently solvent with positive net assets and working capital, which are good signs of financial "vitality." However, the small scale of operations, minimal cash reserves, and reliance on debtors point to early-stage or low-activity status. The company’s capital structure is minimal, with very low share capital and accumulated reserves. The absence of employees and lack of detailed profit & loss data implies limited operational throughput or a company potentially in its formative or holding phase.

The company does not show acute signs of financial distress such as negative net assets, excessive liabilities, or overdue filings, which is positive. However, the overall "health" is fragile due to low liquidity and scale, akin to a patient who is stable but weak and requiring support to build strength.

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4. Recommendations

To improve financial wellness and strengthen the company’s position, consider the following:

• Enhance cash reserves: Improve cash flow management to increase the cash “lifeblood” of the company. Prompt collection of debtors and careful control of payables will help.
• Increase operational activity: Explore opportunities to increase revenue-generating activities, which will build retained earnings and financial robustness.
• Capital injection: Consider raising additional share capital or shareholder loans to strengthen the equity base and provide a financial cushion for growth or unexpected expenses.
• Cost management: With zero employees, the company must ensure operational costs remain low to preserve cash while scaling up activities.
• Financial reporting: Prepare and monitor profit & loss statements closely to detect early signs of operational issues or opportunities for improvement.
• Regular financial reviews: Conduct periodic health checks similar to this to monitor trends in liquidity, profitability, and solvency over time.

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