MRG JOINERY LIMITED

Executive Summary

MRG Joinery Limited has demonstrated a strong improvement in financial health over the latest year, with a solid increase in net assets and positive working capital. The company maintains good liquidity and shows ability to meet credit obligations. Approval for credit facilities is recommended with regular monitoring of cash flow and operational performance due to the company’s small size and single director control.

MRG JOINERY LIMITED - Analysis Report

Company Number: 13920874

Analysis Date: 2025-07-29 14:56 UTC

1. Credit Opinion: APPROVE with monitoring
   MRG Joinery Limited shows a positive and improving financial position from 2024 to 2025, with net assets increasing substantially from £4,269 to £27,458. The company operates in joinery installation and manufacture, a niche with steady demand. The director, Benjamin Jones, holds full control and appears stable with no adverse conduct records. The company is active, filing timely accounts and confirmations. Given the improving net current assets, positive shareholders’ funds, and adequate cash reserves, the company demonstrates capability to service credit facilities. However, being a micro/small entity with only one employee and intangible goodwill on the balance sheet, prudent ongoing monitoring is advised.

2. Financial Strength:

• Net assets increased significantly by £23,189 (over 5-fold) to £27,458 as of 28 February 2025.
• Fixed assets decreased slightly from £8,020 to £6,846, mainly due to amortisation of goodwill (£2,200 charge), but there was an increase in tangible fixed assets reflecting investment in plant and machinery (£2,446 net book value).
• Shareholders’ funds mirror net assets and have increased, reflecting retained earnings growth.
• The company has modest share capital (£100), typical of micro-sized firms.
• The significant increase in retained profits (profit & loss account) from £4,169 to £27,358 indicates profitability and capital accumulation.

3. Cash Flow Assessment:

• Cash at bank rose from £30,110 to £40,758, a healthy liquidity position supporting working capital needs.
• Debtors remained stable around £11,800, manageable at this scale.
• Current liabilities reduced markedly from £44,719 to £31,513, improving liquidity ratios and reducing short-term debt pressure.
• Net current assets swung from a negative £3,481 in 2024 to a positive £21,077 in 2025, indicating a strong enhancement in working capital.
• Provisions increased slightly but remain low (£465), not a major concern.
  Overall, the company has sufficient liquid resources to meet short-term obligations comfortably.

4. Monitoring Points:

• Monitor continued profitability and cash generation to sustain the improving equity base.
• Watch working capital management, particularly debtor collections and creditor terms, to maintain liquidity.
• Track amortisation of goodwill and asset investment to ensure they reflect operational performance and not impairment risk.
• Observe director’s involvement and any changes in ownership or control that could affect governance.
• Given the small scale and reliance on a single director, assess operational risks and potential impact of economic downturns on joinery demand.