9C CONTRACTS LIMITED

Executive Summary

9C CONTRACTS LIMITED is a young micro-entity with a positive net asset position but currently strained liquidity, as reflected by negative net current assets. The company remains solvent but should focus on improving short-term cash flow management and building a stronger equity base to ensure sustainable growth. Proactive financial controls and strategic planning will be key to enhancing its financial wellness.

9C CONTRACTS LIMITED - Analysis Report

Company Number: SC746474

Analysis Date: 2025-07-20 14:11 UTC

Financial Health Assessment for 9C CONTRACTS LIMITED

---

1. Financial Health Score: C

Explanation:
The company demonstrates a modest but stable financial position typical of a young micro-entity just over one year old. The presence of net assets is positive, yet a negative net current asset position signals liquidity strain—a symptom of short-term financial stress that requires attention. The score reflects a cautious "fair" grade with room to improve liquidity and working capital management.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	31,607	Investment in long-term resources; positive for future operations.
Current Assets	78,223	Liquid resources including cash and receivables.
Current Liabilities	84,640	Short-term obligations; slightly higher than current assets.
Net Current Assets	-6,417	Indicates working capital deficiency; potential cash flow stress.
Creditors (after 1 year)	20,116	Medium-term liabilities; manageable but significant for size.
Net Assets	5,074	Equity remaining after liabilities; positive but low buffer.
Employees (average)	3	Small workforce consistent with micro company scale.

Interpretation of Vital Signs:

• Healthy cash flow is currently challenged as short-term liabilities exceed short-term assets, a classic symptom of liquidity strain.
• The positive net assets indicate the company has more assets than total liabilities, which is a sign of solvency, but the low buffer means the company is still fragile.
• Investment in fixed assets shows commitment to operational capacity, a positive sign of long-term planning.
• Being a micro-entity, the scale of operations and financials is small, so any adverse changes could have a magnified effect.

---

3. Diagnosis

9C CONTRACTS LIMITED is a young and small-scale private limited company operating primarily in administrative, facilities support, and consultancy activities related to construction and management services. The financial "vital signs" reveal a business in the growth phase with an asset base starting to form but showing symptoms of liquidity tension.

• The negative net current assets (-£6,417) suggest the company may face challenges meeting its short-term obligations without additional cash inflows or financing, akin to a patient whose pulse is irregular but stable—needs monitoring and intervention to avoid deterioration.
• The company has positive net assets (£5,074), implying it is solvent but does not have a strong equity cushion to absorb shocks or losses.
• The liabilities due after one year (£20,116) add pressure on cash flow planning but are not immediately threatening if managed well.
• The presence of three directors with significant control and a small workforce indicates tight management and potentially agile decision-making but also reliance on key personnel.
• Absence of overdue filings and a clean compliance record reflects good governance and operational discipline.

Summary Diagnosis:
The company is financially viable but currently exhibiting early symptoms of liquidity stress that require proactive management to ensure ongoing operational health and prevent cash flow crises.

---

4. Recommendations

Short-Term Actions:

• Improve Working Capital: Accelerate collection of receivables, negotiate longer payment terms with suppliers, and manage inventory efficiently to convert assets into cash faster.
• Cash Flow Monitoring: Implement weekly cash flow forecasts to detect and address cash shortages early.
• Cost Control: Review and optimize operating expenses, especially discretionary spending, to preserve cash.
• Seek Additional Financing: Consider short-term financing options such as overdrafts or invoice financing to bridge liquidity gaps if needed.

Long-Term Actions:

• Build Equity Buffer: Retain profits to strengthen shareholders' funds and create a financial cushion for future uncertainties.
• Strategic Growth: Leverage fixed assets and expertise in administrative and consultancy services to expand client base and revenue streams, improving profitability and cash generation.
• Governance and Risk Management: Continue strong compliance discipline and consider formal financial planning and risk management frameworks as the company grows.

---