MPL LOFT CONVERSIONS LTD

Executive Summary

MPL Loft Conversions Ltd is a financially stable micro-entity in its startup phase, showing positive net assets and healthy liquidity. The company’s financial condition is sound but warrants attention to medium-term liabilities and profitability tracking. With prudent financial management and strategic growth initiatives, the business is well-positioned for a positive financial future.

MPL LOFT CONVERSIONS LTD - Analysis Report

Company Number: 13580982

Analysis Date: 2025-07-20 15:37 UTC

Financial Health Assessment for MPL LOFT CONVERSIONS LTD

---

1. Financial Health Score: B-

Explanation:
MPL Loft Conversions Ltd demonstrates a generally stable financial position with positive net assets and healthy working capital. However, the presence of medium-term liabilities and relatively low equity compared to liabilities suggests some caution. The company is young and showing early growth signs but needs to manage liabilities and improve liquidity to strengthen overall financial health.

---

2. Key Vital Signs

Metric	Value (2024)	Interpretation
Fixed Assets	£10,892	Indicates investment in long-term assets—positive for business capacity.
Current Assets	£26,073	Includes cash and receivables; a healthy buffer for short-term obligations.
Current Liabilities	£11,446	Debts due within one year; manageable relative to current assets.
Net Current Assets	£14,627	Positive working capital, signaling liquidity to meet short-term debts.
Creditors (Long-term)	£7,824	Medium-term liabilities; requires monitoring to avoid cash flow stress.
Net Assets (Equity)	£17,695	Positive shareholder funds indicate solvency, but size is modest.
Average Number of Employees	2	Small team, consistent with micro-entity status.
Profit/Loss & Reserves	Not disclosed	Insufficient data on profitability; critical for full diagnosis.

Interpretation of Vital Signs:
The company exhibits "healthy cash flow" characteristics with current assets comfortably exceeding current liabilities. The net assets position indicates the company’s solvency is intact. The investment in fixed assets shows a foundation for business operations. However, the medium-term liabilities of £7,824 introduce a "symptom of financial strain" that should be tracked carefully.

---

3. Diagnosis

MPL Loft Conversions Ltd is a young and active micro-entity operating in the construction of domestic buildings. The financial "heartbeat" is steady, with positive net current assets reflecting the company’s ability to cover short-term debts comfortably. The increase in net assets from £1 in 2023 to £17,695 in 2024 suggests initial capital funding and asset acquisition, characteristic of a startup phase.

The presence of medium-term creditors (liabilities due beyond one year) indicates the company has some debt obligations that extend beyond the typical "short-term" cycle. This is not unusual but requires prudent financial management to prevent liquidity crunches.

There is a lack of detailed profit and loss data, which restricts the ability to assess profitability and operational efficiency fully. The company's sole director and 100% shareholder, Mr Marcus Philip Lambourne, also operates as a carpenter, which may indicate hands-on management and direct involvement in operations.

Currently, the business shows no signs of distress—no overdue filings, no liquidation or administration status, and a clear positive net asset position. The "symptoms" point to a business in early growth, requiring careful cash flow management and strategic investment.

---

4. Recommendations

• Enhance Profitability Tracking:
  Implement detailed profit and loss monitoring to understand operational performance. Knowing margins and expenses will help detect early signs of distress.

• Manage Medium-term Liabilities:
  Develop a clear repayment plan for the £7,824 long-term creditors to avoid future liquidity risks. Consider refinancing options if necessary.

• Build Cash Reserves:
  Maintain or increase cash and equivalents to provide a cushion against unexpected downturns, ensuring a "healthy cash flow" state.

• Expand Financial Reporting:
  Even as a micro-entity, consider producing management accounts quarterly to support better decision-making.

• Consider Growth Strategies:
  With a stable base, explore opportunities for expanding client base or service offerings to increase revenue streams.

• Maintain Compliance:
  Continue timely filing of accounts and confirmation statements to avoid penalties and maintain credibility with stakeholders.

---