R D MCBRIDE & SONS LTD

Executive Summary

R D McBride & Sons Ltd exhibits a solid financial condition with strong liquidity and positive equity growth indicative of a financially stable micro-entity in the construction sector. Maintaining healthy cash flow and prudent asset management will be key to sustaining this positive trajectory. With focused strategies on reinvestment and operational efficiency, the company is well-positioned for steady growth.

R D MCBRIDE & SONS LTD - Analysis Report

Company Number: NI686704

Analysis Date: 2025-07-29 18:13 UTC

Financial Health Assessment for R D McBride & Sons Ltd

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1. Financial Health Score: B

Explanation:
R D McBride & Sons Ltd exhibits a solid financial foundation typical of a micro-entity in its early years. The company demonstrates healthy net current assets, positive net assets, and consistent shareholder funds growth. However, a slight reduction in fixed assets and modest scale operations temper the rating. Overall, the company shows signs of financial stability with room for cautious growth and improvement.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	7,295	Slight decrease from previous year, indicates limited investment in long-term assets.
Current Assets	49,705	Healthy level of liquid assets and receivables supporting operations.
Current Liabilities	26,557	Manageable short-term obligations; coverage by current assets is strong.
Net Current Assets	23,384	Positive working capital, indicating a "healthy cash flow" buffer.
Net Assets	30,679	Positive equity position, reflecting retained earnings and owner’s investment.
Shareholders Funds	30,679	Equity funding is stable and growing, showing trust and commitment from owners.
Average Employees	2	Small workforce consistent with micro-entity status.

Interpretation of Vital Signs:

• The company maintains a strong liquidity position, with current assets nearly double current liabilities—a "healthy pulse" indicating it can meet short-term debts comfortably.
• Net assets and shareholders’ funds have increased by approximately £6,000 compared to the prior year, suggesting profitable operations or capital injections.
• The slight decline in fixed assets may reflect asset disposals or minimal reinvestment, which is typical for a small construction business in its early phase.

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3. Diagnosis

The "financial body" of R D McBride & Sons Ltd is in generally good health. The company demonstrates "good circulation" with positive working capital and stable equity, which means it has the necessary resources to manage day-to-day operations and absorb minor shocks. The increase in net assets year-over-year signals profitability or retained earnings accumulation, a positive "heartbeat" for long-term viability.

The "symptoms" of fixed asset reduction are mild and not currently alarming but warrant monitoring to ensure the company maintains its operational capacity. The micro-entity status means filing and compliance burdens are minimal, allowing focus on operational growth.

The company’s industry classification in residential and commercial building construction implies exposure to economic cycles; thus, maintaining liquidity is crucial for weathering potential downturns.

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4. Recommendations

To maintain and improve financial wellness, consider the following actions:

• Asset Management: Evaluate the fixed asset base and consider reinvestment in essential equipment or technology to support growth and efficiency. Avoid asset depletion which can weaken operational capacity.
• Cash Flow Monitoring: Continue to monitor working capital closely to ensure a "healthy cash flow." Consider establishing cash flow forecasts to anticipate seasonal fluctuations common in construction.
• Growth Planning: With a stable equity base, explore modest expansion opportunities or diversification within the construction sector to enhance revenue streams.
• Cost Control: Maintain tight control over current liabilities and operating expenses to preserve the positive net current asset position.
• Compliance and Governance: Ensure timely filing of accounts and confirmation statements to avoid penalties, maintaining the company’s "legal health."
• Stakeholder Communication: Keep the sole significant controller informed and engaged in strategic decisions, leveraging their full control for agile decision-making.

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