M.B. FRAMES P.V.C.-U LIMITED
Company number 02690630 · 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 Assessment for M.B. FRAMES P.V.C.-U LIMITED
1. Financial Health Score: B+ (Good)
The company is in robust financial condition, with strong liquidity and a solid capital base. The score is slightly tempered by a modest decline in net assets and increased long-term borrowing, but overall vital signs are excellent.
2. Key Vital Signs
| Vital Sign | Current Reading | Healthy Range | Interpretation |
|---|---|---|---|
| Cash Reserves | £2,349,189 | > £500k | Excellent – ample liquidity buffer |
| Net Current Assets (Working Capital) | £2,187,926 | Positive & growing | Strong short-term solvency |
| Current Ratio | 2.62 | 1.5–3.0 | Healthy – can easily cover short-term debts |
| Quick Ratio (Acid Test) | 2.27 | > 1.0 | Very strong – even without stock sales |
| Debt-to-Equity Ratio | 0.69 | < 1.0 | Moderate – debt is manageable relative to equity |
| Net Assets Trend (5-year) | £1.01M → £2.55M | Upward | Excellent long-term growth |
| Retained Earnings Change (2024→2025) | –£146,522 | Stable or positive | Minor symptom – possible dividend payment or small loss |
Additional Observations: - Fixed assets increased 32% (from £600k to £791k), indicating investment in capacity. - Long-term creditors jumped from £64k to £240k, likely financing that investment. - Stock levels rose 13% and debtors fell 12%, suggesting efficient sales collections.
3. Diagnosis
Overall Condition: Healthy, with a mild seasonal sniffle.
- Heart (Cash Flow): Strong and steady. Cash at bank covers all current liabilities 1.7 times over. The company has a thick cash cushion to weather any short-term disruptions.
- Lungs (Working Capital): Breathing easily. Net current assets are more than 1.6 times current liabilities, indicating the business can meet its obligations without strain.
- Bones (Fixed Assets): Growing stronger. The increase in tangible assets shows reinvestment in the business – a positive sign for future production capacity.
- Blood Pressure (Debt Levels): Slightly elevated but normal. The debt-to-equity ratio of 0.69 is acceptable, though the jump in long-term debt warrants monitoring. Most debt is within one year and is well covered by cash.
- Weight (Net Assets): Slight dip of 5.4% from last year. This is the only area of concern. It could reflect a one-off dividend distribution or a modest trading loss. Without the profit and loss account, the exact cause is unclear, but the absolute level remains very strong.
No symptoms of distress: No overdue filings, no liquidation or administration, no director disqualifications, and the company is actively trading.
4. Recommendations
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Investigate the dip in retained earnings. Determine whether the £147k reduction was due to dividends or a trading loss. If a loss, review margins and cost controls. If dividends, ensure the payout ratio is sustainable.
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Monitor the long-term debt. The increase from £64k to £240k should be matched by the new fixed assets. Ensure the repayment schedule is manageable and that the assets are generating sufficient returns to service the debt.
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Optimise cash holdings. With over £2.3 million sitting in the bank, consider deploying a portion into higher-yield short-term instruments or strategic investments (e.g., R&D, marketing, or acquisitions) to improve returns without sacrificing liquidity.
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Review stock levels. Stock rose 13% while sales (implied by debtors) fell. Check for slow-moving or obsolete inventory to avoid tying up cash unnecessarily.
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Maintain the current ratio above 2.0. The company is well within this range, but continued investment should be balanced to keep liquidity healthy.