MSJ PROPERTY MAINTENANCE LTD

Executive Summary

MSJ Property Maintenance Ltd is financially solvent with positive net assets and healthy short-term liquidity, but the significant level of medium- to long-term debt presents a risk that needs close management. The company is in an early stage with limited operational scale, so strengthening equity and carefully managing liabilities will be critical for its financial wellness and growth. Regular monitoring and prudent financial planning are recommended to ensure a stable future outlook.

MSJ PROPERTY MAINTENANCE LTD - Analysis Report

Company Number: 14738028

Analysis Date: 2025-07-29 13:13 UTC

Financial Health Assessment: MSJ PROPERTY MAINTENANCE LTD

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1. Financial Health Score: C

Explanation:
MSJ Property Maintenance Ltd, a newly incorporated micro-entity, shows a modest positive net asset position but displays signs of financial strain related to medium- and long-term liabilities. The company is in an early stage of operation, which naturally limits the depth of financial data available, but current indicators suggest a cautious outlook. The score reflects a company that is solvent but with some symptoms of financial stress requiring active management.

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2. Key Vital Signs:

Metric	Value (£)	Interpretation
Fixed Assets	22,500	Ownership of tangible or long-term assets, providing a foundation for operations.
Current Assets	15,006	Liquid or quickly realizable assets to cover short-term obligations.
Current Liabilities	8,698	Debts and obligations due within one year, manageable relative to current assets.
Net Current Assets	6,308	Positive working capital indicates ability to meet short-term debts.
Creditors due after one year	25,928	Significant medium/long-term liabilities that exceed net current assets, raising caution.
Total Net Assets	2,880	Net equity is positive but low, indicating limited financial buffer.
Shareholders’ Funds	2,880	Equity invested and retained earnings, reflecting owner’s stake and company’s net worth.
Employees	1	Very small workforce consistent with micro-entity status, implying lean operations.

Interpretation of Vital Signs:

• Healthy cash flow symptom: Positive net current assets of £6,308 suggest the company currently has enough liquid resources to cover short-term liabilities, a good indicator of operational liquidity.
• Symptom of distress: The medium- to long-term creditors of £25,928 are notably larger than the net current assets and the total net assets, implying potential pressure on the company’s solvency if these debts are not managed or refinanced properly.
• Early-stage business: Incorporated in March 2023, the company’s financial data represents an initial snapshot rather than a mature financial profile. This limits trend analysis but also suggests potential for growth or risk depending on management actions.

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3. Diagnosis:

MSJ Property Maintenance Ltd is currently solvent with positive net assets, which is a fundamental indicator of financial health. The company demonstrates a healthy short-term liquidity position, meaning it can meet immediate obligations without distress. However, the relatively high amount of creditors due after more than one year compared to net assets is a symptom that requires close monitoring.

This may signal reliance on external financing or deferred liabilities that could strain the company’s financial resources in the medium term. Given the company’s micro-entity status, the scale of operations is small, and the business appears to be in its infancy with a single employee and limited fixed assets.

The overall financial condition is stable but fragile. The key risk is the management of medium- and long-term liabilities, which if not carefully controlled, could evolve into financial distress. The company’s ability to generate revenue and profits going forward will be crucial to improve equity and reduce debt burdens.

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4. Recommendations:

• Manage Medium- and Long-term Debt Carefully:
  Develop a clear repayment or refinancing plan for the £25,928 creditors due after more than one year. Avoid accumulating further long-term liabilities without a solid cash flow forecast.

• Strengthen Equity Base:
  Consider injecting additional capital or retaining earnings to build a stronger equity buffer. This will improve financial resilience and support future growth.

• Monitor Cash Flow Rigorously:
  Maintain a tight control on working capital to ensure current assets continue to exceed short-term liabilities. Regular cash flow forecasts will help detect liquidity issues early.

• Focus on Business Growth:
  As a new business, prioritize expanding revenue streams and improving profitability. This will allow the company to reduce reliance on debt financing.

• Regular Financial Reviews:
  Conduct quarterly financial health checks similar to this diagnostic to track progress, identify symptoms of distress early, and adjust strategies accordingly.

• Consider Professional Advice:
  Engage with a financial advisor or accountant to assist with budgeting, tax planning, and structuring finances optimally as the company grows.

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