MT BRICKWORK SERVICES LTD

Executive Summary

MT Brickwork Services Ltd maintains a stable but weakening financial position with declining liquidity and equity levels, signalling early symptoms of financial stress. Proactive cash flow management and cost control are essential to restore financial vitality and support sustainable growth in this micro-sized construction business.

MT BRICKWORK SERVICES LTD - Analysis Report

Company Number: 14387103

Analysis Date: 2025-07-29 12:19 UTC

Financial Health Assessment for MT BRICKWORK SERVICES LTD

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1. Financial Health Score: C

Explanation:
MT Brickwork Services Ltd shows a modest but stable financial position typical for a micro-entity in its early years. The company maintains positive net current assets and net assets, indicating solvency and an ability to meet short-term obligations. However, there is a noticeable decline in net current assets and net assets from 2023 to 2024, which signals some emerging financial stress. The company’s financial "vital signs" suggest cautious optimism but warrant close monitoring and proactive measures to stabilize and improve financial health.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	17,774	19,974	Slight decrease in liquid resources; watch cash flow closely.
Current Liabilities	12,590	10,248	Increase in short-term obligations; potential pressure on liquidity.
Net Current Assets (Working Capital)	5,184	9,726	Shrinking buffer to cover short-term debts; early "symptom of distress".
Net Assets (Equity)	5,184	9,726	Decline in shareholder equity; indicates erosion of retained capital.
Number of Employees (incl director)	1	1	Small scale operation with limited workforce.

Interpretation of Vital Signs:

• Healthy cash flow is indicated by positive net current assets, but the decline by almost 47% year-on-year suggests reduced liquidity and possible cash flow constraints.
• The increase in current liabilities by over 22% might be due to higher operational costs or delayed payments, which can stress the company's short-term financial stability.
• Net assets halving in a year is a red flag, indicating the company’s equity base is being eroded potentially by losses or dividend payments exceeding profits.
• The company is a micro entity with minimal fixed assets and a one-person operation, limiting overhead but also growth capacity.

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3. Diagnosis

The company’s financial health shows early symptoms of financial strain despite remaining solvent. The shrinking net current assets ("working capital") and the decline in net assets are analogous to a patient whose vital signs are weakening—still stable but requiring attention. Since MT Brickwork Services Ltd is a micro-entity in the construction of domestic buildings, fluctuations in cash flow and liabilities can quickly impact financial resilience due to the sector's cyclical nature and payment terms.

The absence of a profit and loss account in the filings limits insight into profitability, but the reduction in equity suggests either operational losses or capital withdrawals. The director’s sole control and micro scale reduce complexity but also mean financial risks are concentrated.

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4. Recommendations

• Improve Cash Flow Management: Accelerate debtor collections, negotiate better payment terms with suppliers, and maintain a cash buffer to avoid liquidity crunches.
• Cost Control: Review operating expenses closely to identify and reduce non-essential costs that may be eroding equity.
• Profitability Review: Prepare detailed profit and loss statements internally to identify loss-making activities or projects and address them promptly.
• Consider Capital Injection: If feasible, an equity injection could strengthen net assets and provide working capital to stabilize operations.
• Regular Monitoring: Implement monthly financial reviews to track vital signs and respond quickly to any worsening trends.
• Explore Growth Opportunities: Carefully evaluate new contracts or services that can increase turnover without disproportionately increasing liabilities.
• Professional Advice: Seek advice on tax planning, grant opportunities, and financial structuring suitable for micro-entities in the construction sector.

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