A LONG TALE AND TWO BRANCHES LTD
Executive Summary
A LONG TALE AND TWO BRANCHES LTD is currently dormant, showing no operational activity and minimal financial resources. While compliance with filing requirements is maintained, the company’s financial health is limited by inactivity, resulting in a neutral but stagnant financial condition. To improve its financial wellness, the company should consider activating its business operations and ensuring adequate capital and management resources.
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This analysis is opinion only and should not be interpreted as financial advice.
A LONG TALE AND TWO BRANCHES LTD - Analysis Report
Financial Health Assessment for A LONG TALE AND TWO BRANCHES LTD
1. Financial Health Score: Grade D
Explanation:
The company is classified as dormant with minimal financial activity, reflected in negligible assets and cash (£1). This indicates an absence of operational business activity, which in medical analogy could be likened to a patient in a state of suspended animation—alive but not actively functioning. While no negative symptoms of financial distress appear, the lack of activity severely limits the company’s financial vitality and growth prospects.
2. Key Vital Signs
Metric | Value | Interpretation |
---|---|---|
Account Category | Dormant | No significant trading or business activity during the year. |
Net Assets | £1 | Extremely minimal net worth, no operational assets. |
Cash at bank and in hand | £1 | Essentially no working capital; no liquid resources to fund operations. |
Share Capital | £1 | Minimal initial investment, typical for dormant entities. |
Company Status | Active | Company is legally active but not operational. |
Filing Compliance | Up to date | No overdue filings; compliance with statutory deadlines is maintained. |
Director | Single director, no disqualifications | Stable governance, but limited management resource. |
3. Diagnosis
The company exhibits the "symptom" of dormancy—a state where it has not engaged in any business transactions or generated revenue. The financial "vitals" are extremely weak, with net assets and cash balances at the minimal statutory amounts. This indicates no business operations or trading activity.
From a financial health perspective, this is neither positive nor negative in terms of distress; rather, it is a "flatline" where the company is not generating income or expenses. The company’s books show no signs of liabilities, losses, or debts—a sign that it is not incurring financial strain.
However, the absence of operational activity also means the company is not creating value, is not generating cash flows, and is not building equity. The lack of financial movement suggests the business is either in a holding pattern, awaiting future activation, or simply maintaining a legal entity without active commercial intent.
4. Recommendations
Activate or Develop Business Activity: To transition from dormant status to financial health, the company must initiate trading or operational activities generating revenue and cash flow. This will provide the "heartbeat" needed for financial vitality.
Maintain Compliance: Continue timely filing of dormant accounts and confirmation statements to avoid penalties and demonstrate good governance.
Evaluate Purpose: Assess the strategic intent behind maintaining the dormant company. If it is a holding entity or planned for future use, ensure proper documentation and planning.
Consider Capital Injection: If intending to activate the company, a capital injection or working capital provision would be necessary to fund initial operations.
Monitor Director Engagement: With a single director, ensure sufficient oversight and management capacity to support any future business operations.
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