MAXIZZ LIMITED
Company number 05665342 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Financial Health Score: B
A grade of B indicates a fundamentally sound business with strong liquidity and solvency, but with a cautionary trend of equity erosion. The company is not in distress, yet its current trajectory—paying out more than it retains—warrants attention.
Key Vital Signs
| Vital Sign | Latest Reading | What It Means |
|---|---|---|
| Solvency (Net Assets) | £94,506 | Positive and substantial. The company owns significantly more than it owes, giving it a solid financial foundation. |
| Liquidity (Cash at bank) | £41,293 | Cash covers short-term creditors roughly 2.5 times over. This is a healthy pulse and provides a comfortable buffer. |
| Short-term creditors | £16,478 | Manageable. These consist mainly of corporation tax, VAT, accruals, and a small directors’ loan balance. |
| Equity trend | Down from £100,612 to £94,506 | Net assets fell by about 6% in one year. Like mild weight loss, it is not critical but should be monitored. |
| Dividend distribution | £35,000 paid in 2025 | Distributions appear to have exceeded the year’s retained profit, drawing down accumulated reserves rather than adding to them. |
| Fixed assets | £69,691 (tangible) | Mainly vehicles and equipment, whose book value is depreciating over time. |
| Regulatory compliance | Accounts and confirmation statement up to date | No overdue filings. Good administrative hygiene. |
Diagnosis
The company’s financial condition is best described as stable but in a phase of capital distribution rather than accumulation. Its balance sheet is solvent and its cash position is robust—comparable to a patient with strong vital signs. However, net assets have contracted because dividends paid (£35,000) outstripped the profit retained for the year, reducing shareholders’ funds from £100,612 to £94,506. In medical terms, the business is drawing down its reserves faster than it is replenishing them.
There are no immediate symptoms of insolvency distress: creditors are small relative to cash, there is no visible long-term debt, and filing obligations are current. The principal risk is that if this dividend policy continues without profit growth, the equity cushion will thin, leaving the company less able to absorb future shocks such as a drop in demand or an unexpected tax bill.
Recommendations
- Review the dividend policy: Align distributions with current-year profitability to prevent further erosion of retained earnings. Consider a more conservative payout until the equity base is rebuilt.
- Maintain liquidity buffers: Keep cash at or above current levels to cover creditors and unexpected obligations.
- Plan for asset replacement: Tangible fixed assets are depreciating. Budget for future vehicle and equipment replacement so cash is not caught short.
- Monitor creditor composition: Corporation tax and VAT liabilities have increased. Set aside funds regularly to meet these obligations as they fall due.
- Prepare short-term forecasts: With a small team and concentrated ownership, a simple 12-month cash flow forecast would help the directors test whether planned dividends are sustainable.