Company Number: 13769139

Analysis Date: 2025-07-20 11:54 UTC

Financial Health Assessment for STACEYS MAGIC MAIDS LIMITED

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1. Financial Health Score: B

Explanation:
The company shows stable net assets and positive working capital, indicating a generally healthy balance sheet for its micro-entity size. However, slight declines in net assets and current assets over the last year, along with minimal fixed assets and limited financial detail (profit and loss not filed), suggest cautious monitoring is advisable to maintain financial wellness.

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2. Key Vital Signs

Metric	2023 Value	2022 Value	Interpretation
Fixed Assets	£1,560	£1,560	Very low, typical for a cleaning service; minimal investment in long-term assets.
Current Assets	£6,563	£7,889	Healthy short-term resources but slight decline may indicate reduced cash or receivables.
Current Liabilities	£3,223	£4,121	Decreased short-term obligations, positive sign.
Net Current Assets	£3,340	£3,768	Positive working capital, showing ability to meet short-term debts comfortably.
Net Assets (Shareholders’ Funds)	£4,894	£5,258	Solid equity base but a marginal decrease, indicative of minor retained losses or distributions.
Average Employees	3	3	Stable workforce size, consistent with micro-entity operations.

Interpretation of Vital Signs:

• Healthy cash flow symptom: Positive net current assets indicate the company has more short-term assets than liabilities, a sign of good liquidity and operational health.
• Stable equity symptom: Shareholders’ funds remain positive and substantial relative to company size, meaning the business is not over-leveraged.
• Symptom of slight distress: Small decline in net assets and current assets could hint at reduced cash inflows or increased expenses; monitoring is essential to avoid cash flow strain.

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3. Diagnosis

STACEYS MAGIC MAIDS LIMITED, operating in the cleaning services sector, maintains a financially stable position typical for a small, service-based micro-entity. The business shows no signs of distress such as negative working capital or eroded equity. The steady workforce and consistent fixed assets imply a stable operational base. However, the slight reduction in both current assets and net assets year-over-year is a mild symptom that warrants attention to ensure it does not evolve into a deeper financial issue.

The absence of profit and loss figures limits insight into profitability and cash flow trends, which are critical for a full financial health diagnosis. Given the company’s micro status, reliance on micro-entity accounting standards is usual, but enhanced financial management and regular cash flow monitoring will support sustained health.

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4. Recommendations

• Enhance Cash Flow Management: Maintain close oversight on cash inflows and outflows. Consider preparing monthly cash flow forecasts to detect potential liquidity issues early.
• Profitability Tracking: Even though not legally required, internally tracking profit and loss will help identify earning trends and cost pressures, enabling proactive management.
• Maintain Positive Working Capital: Avoid letting current liabilities approach or exceed current assets to prevent liquidity stress.
• Asset Utilization Review: With minimal fixed assets, ensure investments in equipment or tools are sufficient to maintain service quality without unnecessary capital tie-up.
• Financial Reporting Improvements: Consider voluntarily preparing fuller accounts or management accounts, providing deeper insights for decision-making and stakeholder confidence.
• Director’s Involvement: As the sole director and significant shareholder, Stacey Maire Beattie should continue active financial oversight and consider engaging with a financial advisor for strategic planning.
• Monitor External Environment: Stay alert to market conditions in the cleaning industry and local economic factors that could impact demand or cost structures.

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