MT PLEASANT SERVICES LTD

Executive Summary

MT PLEASANT SERVICES LTD shows warning signs of liquidity strain due to persistent negative working capital and discrepancies in net asset reporting. Immediate action to improve cash flow and clarify financial statements is essential to stabilize the company's financial health and sustain operations. Without intervention, there is a risk of escalating financial distress.

MT PLEASANT SERVICES LTD - Analysis Report

Company Number: 12587562

Analysis Date: 2025-07-29 14:26 UTC

Financial Health Assessment of MT PLEASANT SERVICES LTD

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1. Financial Health Score: D

Explanation:
The company shows persistent net current liabilities over the past years, indicating a cash flow strain and potential liquidity concerns. Despite increasing net assets reported, the negative figures in the accounts document suggest reporting inconsistencies or possible deteriorations. The score D reflects "symptoms of financial distress" that require immediate attention to avoid worsening conditions.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Trend	Interpretation
Current Assets	13,938	31,198	↓ (declining)	Reduced short-term assets, weakening liquidity
Current Liabilities	42,765	50,158	↓ (improving)	Still high, but slightly reduced short-term debts
Net Current Assets (Working Capital)	-28,827	-18,960	↓ (worsening)	Negative working capital: "cash flow blockage" symptom
Net Assets / Shareholders Funds	28,827	18,960	↑ (improving)	Positive net worth, but conflicting with reported negatives
Average Employees	3	3	Stable	Small workforce consistent with micro entity

Interpretation:

• The company’s current liabilities exceed current assets significantly, indicating an inability to meet short-term obligations promptly. This is akin to a patient showing signs of dehydration—urgent replenishment needed.
• The net assets reported in the financial data are positive and rising, but the official balance sheet in the accounts document shows negative net assets, signaling a discrepancy or recent financial deterioration.
• The reduced current assets and persistent net current liabilities suggest cash flow constraints, possibly due to delayed receivables or high short-term borrowings.

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3. Diagnosis

MT PLEASANT SERVICES LTD exhibits symptoms of liquidity stress. The negative working capital is a key indicator that the company may struggle to fund day-to-day operations without additional financing or improved cash collection. The discrepancy between the management-reported net assets (positive) and the official filings (negative) raises concerns about accounting treatment or recent financial events not fully reflected in all data sets.

The company is still solvent (positive net assets reported) and has a stable small workforce, but the strained liquidity is a warning sign—much like a patient with a stable heartbeat but low blood pressure requiring intervention.

The business operates in diverse sectors (property management, cleaning, goods leasing, catering), which could provide multiple revenue streams but may also dilute focus and cash flow predictability.

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4. Recommendations

• Improve Cash Flow Management:
  Tighten credit control and accelerate debtor collections. Consider negotiating longer payment terms with suppliers to ease short-term liabilities.

• Clarify Financial Reporting:
  Investigate and reconcile discrepancies between reported net assets and those in official accounts. Accurate financial reporting is critical to diagnose and treat financial health properly.

• Reduce Current Liabilities:
  Explore refinancing short-term debts into longer-term arrangements where possible to relieve immediate pressure.

• Focus Business Activities:
  Evaluate the profitability of each industry segment to prioritize cash-generating activities and possibly divest underperforming areas.

• Seek Professional Advice:
  Engage a financial advisor or accountant to assist in restructuring finances and improving liquidity.

• Maintain Compliance:
  Ensure timely filing of accounts and returns; this company is currently compliant, which supports credibility.

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