PULSE M&E GROUP LIMITED

Executive Summary

Pulse M&E Group Limited is financially healthy for a newly established micro-entity, showing positive net assets and working capital with no signs of liquidity distress. The company benefits from strong governance and compliance but should focus on careful cash flow management and strategic growth planning to sustain and enhance its financial wellbeing. Early attention to managing liabilities and gradual investment will support a stable financial prognosis.

PULSE M&E GROUP LIMITED - Analysis Report

Company Number: 15397035

Analysis Date: 2025-07-20 17:37 UTC

Financial Health Assessment: PULSE M&E GROUP LIMITED

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1. Financial Health Score: B

Explanation:
For a micro-entity in its first year of operation, Pulse M&E Group Limited shows a solid foundation with positive net assets and working capital. The company demonstrates prudent asset management and no signs of immediate financial distress. However, as a newly incorporated company with limited operational history and a small asset base, the score reflects promising early health but also the inherent risks and uncertainties of a young business.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	3,500	Modest investment in long-term assets, typical for startup.
Current Assets	55,668	Healthy level of liquid and short-term assets (cash/debtors).
Current Liabilities	40,739	Short-term debts are present but manageable.
Net Current Assets (Working Capital)	14,929	Positive working capital indicates ability to meet short-term obligations.
Net Assets (Shareholders' Funds)	18,429	Positive equity, signaling ownership value and no insolvency.
Employees	1	Very small workforce, typical of a micro-entity startup.

Interpretation of Vital Signs:

• Healthy Cash Flow Buffer: Positive net current assets of nearly £15k mean the company is not struggling with immediate cash flow issues—a key "heartbeat" indicator.
• Asset Base: Fixed assets are minimal, consistent with a service-based electrical installation business focusing on labour and tools rather than heavy equipment.
• Liabilities: Current liabilities are significant but comfortably covered by current assets, suggesting no urgent liquidity distress symptoms.
• Equity Position: Positive net assets point to a solvent balance sheet with no accumulated losses to date.
• Operational Size: As a micro-entity with only one employee, the company is in early growth stages, which means financial resilience is still developing.

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3. Diagnosis

Overall Financial Condition:
Pulse M&E Group Limited is in a stable financial condition typical of a newly formed micro-entity in the electrical installation sector. The company’s balance sheet shows no worrisome symptoms such as negative equity or excessive short-term liabilities relative to liquid assets. The presence of positive working capital is a strong sign of operational liquidity and business viability.

The company has no overdue filings, indicating good compliance and governance—which is an important aspect of financial health. The dual control shared by two significant controllers/directors provides balanced oversight, reducing risks of governance-related financial mismanagement.

Potential Weaknesses:

• Limited operational history means financial forecasting and trend analysis are unavailable, making prognosis less certain.
• The small asset base and workforce imply limited capacity to scale rapidly without further capital injection or borrowing.
• Current liabilities are not negligible; ongoing monitoring is required to avoid cash flow strain as the business grows.

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4. Recommendations

To enhance financial wellness and build a robust foundation, the company should consider the following actions:

1. Maintain Positive Cash Flow:

   • Prioritize timely collection of receivables and control payment terms with suppliers to keep working capital healthy.
   • Maintain a cash reserve for unforeseen expenses.

2. Build Asset Base Gradually:

   • Invest cautiously in tools and equipment that improve service delivery efficiency without overextending finances.

3. Monitor and Manage Liabilities:

   • Keep current liabilities under close review, aiming to reduce short-term debts or refinance them into longer-term obligations if necessary.

4. Plan for Growth:

   • Develop a financial forecast and budget to anticipate funding needs, especially if expanding workforce or operations.
   • Explore funding options early (e.g., business loans, grants) to support scaling.

5. Compliance and Governance:

   • Continue timely filing of accounts and confirmation statements to avoid penalties and maintain stakeholder confidence.
   • Ensure clear documentation and communication among directors and persons with significant control.

6. Risk Management:

   • Consider business insurance and contingency planning given the electrical installation industry’s inherent operational risks.

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