THE FORGE (MOBBERLEY) MANAGEMENT COMPANY LTD
Executive Summary
THE FORGE (MOBBERLEY) MANAGEMENT COMPANY LTD is in a sound financial position for a micro-sized entity, showing steady growth in net assets and positive working capital. The company is compliant with filing requirements and displays no signs of financial distress, though its small scale limits operational breadth. Continued prudent cash flow management and strategic growth planning will help maintain and improve its financial health.
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This analysis is opinion only and should not be interpreted as financial advice.
THE FORGE (MOBBERLEY) MANAGEMENT COMPANY LTD - Analysis Report
Financial Health Assessment Report for THE FORGE (MOBBERLEY) MANAGEMENT COMPANY LTD
1. Financial Health Score: B
Explanation:
The company demonstrates positive net current assets and a steadily improving net asset base over the last three financial years. While the scale of operations remains small (micro-entity level), the balance sheet shows signs of growing financial stability with no overdue filings or indications of distress. The score reflects a healthy financial condition for a micro-sized company, albeit with limited scale and operational complexity.
2. Key Vital Signs
Metric | 2024 Value (£) | Interpretation |
---|---|---|
Current Assets | 5,493 | Adequate short-term resources (cash/debtors) |
Current Liabilities | 4,182 | Short-term debts, manageable relative to assets |
Net Current Assets | 1,311 | Positive working capital indicates ability to cover short-term obligations |
Net Assets | 1,311 | Represents the company’s residual value after liabilities |
Share Capital | 4.00 | Minimal initial equity invested |
Average Employees | 0 | No staff employed, indicating very lean operations |
Filing Status | Up to date | No overdue accounts or confirmation statements |
Interpretation:
- Healthy cash flow indicator: The positive net current assets suggest the company can meet its short-term liabilities without stress, an essential "heartbeat" of financial health.
- Growing net assets: The increase from £329 in 2023 to £1,311 in 2024 suggests accumulation of retained earnings or funds, signaling a strengthening financial cushion.
- Micro-entity status: The small scale and zero employees imply the business operates with minimal overheads, reducing risk but also indicating limited growth or complexity.
- No overdue filings: Compliance with statutory requirements indicates good governance and no regulatory "symptoms of distress."
3. Diagnosis
The financial "vital signs" indicate a company in a stable and sound condition for its size and stage of development. The net current assets are positive and growing, showing the company maintains a healthy buffer to cover its liabilities. The balance sheet remains simple, consistent with its micro-entity status and absence of employees.
However, the small scale and minimal share capital reflect a limited operational footprint, which may constrain growth potential. The company is not showing signs of financial distress such as negative working capital, increasing liabilities, or overdue filings.
The absence of employees suggests the business model is either highly automated, reliant on contractor or director input, or in an early phase without expansion. The SIC code indicates “other service activities not elsewhere classified,” so the business may have niche or specialized operations.
4. Recommendations
- Maintain strong working capital management: Continue monitoring current assets and liabilities to ensure ongoing liquidity. Positive net current assets are the "pulse" of operational health.
- Build equity base gradually: Consider retaining earnings within the company to further strengthen net assets and provide a buffer against unforeseen expenses.
- Consider growth strategies: If business expansion is desired, evaluate options for increasing capital investment or hiring to scale operations sustainably.
- Regular compliance checks: Maintain up-to-date filings to avoid penalties or regulatory issues, which can be early warning signs of financial trouble.
- Financial forecasting: Develop simple cash flow forecasts to anticipate future needs and avoid liquidity crunches. This proactive approach can identify "symptoms" before they become critical.
- Review business model: Given the zero employees, assess whether outsourcing or automation is optimal and if additional resources are needed to support growth.
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