TIM MCCARTHY EDUCATION LIMITED

Executive Summary

TIM MCCARTHY EDUCATION LIMITED demonstrates a stable and financially healthy position for a micro-entity, with positive working capital and net assets. While early in its lifecycle, the company maintains good liquidity and prudent creditor management, indicating sound financial practices. Continued focus on cash flow monitoring and asset optimization will support future growth and financial wellness.

TIM MCCARTHY EDUCATION LIMITED - Analysis Report

Company Number: 14225541

Analysis Date: 2025-07-29 20:41 UTC

Financial Health Assessment of TIM MCCARTHY EDUCATION LIMITED

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1. Financial Health Score: B

Explanation:
This company shows a generally stable financial position with positive net assets and net current assets over the last two reported financial years. While growth is modest, liquidity and working capital remain healthy for a micro-entity at an early stage of development. There is room for improvement in asset management and cash conversion, but no immediate signs of financial distress.

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2. Key Vital Signs

Metric	2024 Value	2023 Value	Interpretation
Fixed Assets	£1,634	£2,439	Slight decrease indicates some asset disposal or depreciation; typical for small service firms.
Current Assets	£10,244	£12,651	Reduction in liquid assets could signal tighter cash flow or decrease in receivables/inventory.
Current Liabilities	£6,863	£10,391	Significant reduction suggests better management of short-term debts or creditor payments.
Net Current Assets	£3,381	£2,260	Positive and improving, indicating healthy short-term liquidity and working capital.
Net Assets (Equity)	£5,015	£4,699	Positive equity that has slightly increased, reflecting retained earnings or capital injection.
Average Employees	3	3	Stable workforce size appropriate for micro-company size.

Interpretation of Vital Signs:

• The company maintains "healthy cash flow" with net current assets comfortably positive, meaning it can cover its short-term debts without strain.
• The modest decrease in fixed assets is not alarming but should be monitored to ensure the asset base supports business operations.
• A reduction in current liabilities with simultaneous decrease in current assets suggests improved creditor management and possibly tighter cash controls.
• The positive and slightly increasing net assets reflect accumulated profits or capital reserves, a "strong pulse" of financial solidity at micro-company scale.

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3. Diagnosis

TIM MCCARTHY EDUCATION LIMITED is showing signs of a financially stable micro-entity with adequate liquidity and positive equity. The company’s "vital signs" indicate no immediate illness such as liquidity crunch or over-leverage. The consistent number of employees and manageable asset base align with its micro size and education sector classification (SIC 85590).

The "symptoms" suggest the company is maintaining a cautious but effective control over its finances, with no signs of distress such as negative working capital or net liabilities. The slight decrease in fixed assets and current assets may reflect normal operational fluctuations rather than pathology.

Given its inception in 2022, the company is still in early stages and appears to have a "healthy constitution," though it should ensure it continues to grow its asset base and cash reserves to support any expansion plans.

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4. Recommendations

1. Cash Flow Monitoring:
   Continue close monitoring of cash inflows and outflows to maintain positive working capital. Consider implementing cash flow forecasting to anticipate any seasonal or operational liquidity needs.

2. Asset Management:
   Review the fixed assets to ensure they are aligned with business needs. If assets are aging or underutilized, consider reinvestment or disposal to optimize the balance sheet.

3. Growth Planning:
   As the company grows, plan for scaling operations and financing needs. Maintaining positive net assets is crucial to avoid financial strain.

4. Cost Controls:
   Maintain or improve creditor payment terms to preserve liquidity, but avoid damaging supplier relationships.

5. Financial Reporting:
   Given the micro status, continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

6. Strategic Review:
   Periodically review business strategy in light of financial health to ensure sustainable growth and resilience against external shocks.

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