BASH AND BLOW LTD

Executive Summary

BASH AND BLOW LTD shows a strong financial foundation with positive net assets and working capital, indicating good liquidity and initial capital adequacy. As a newly incorporated micro-entity, it currently displays no signs of financial distress but should focus on cash flow management and profitability to ensure long-term health. Strengthening governance and building financial reserves will support sustainable growth and resilience.

BASH AND BLOW LTD - Analysis Report

Company Number: 14809157

Analysis Date: 2025-07-29 21:04 UTC

Financial Health Assessment of BASH AND BLOW LTD

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1. Financial Health Score: B

Explanation:
BASH AND BLOW LTD demonstrates a solid financial foundation typical of a newly established micro-entity. The company shows positive net assets and net current assets, indicating good short-term liquidity and initial capital adequacy. However, given the company's infancy (less than 1 year since incorporation), limited financial history, and modest asset base, the health grade is a "B" — healthy but with room for strengthening as the business grows.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	6,386	Represents modest investment in long-term assets (equipment, property). Appropriate for a start-up in hairdressing/beauty sector.
Current Assets	20,921	Includes cash and receivables; indicates available resources to meet short-term obligations.
Current Liabilities	10,112	Debts due within one year. Manageable relative to current assets.
Net Current Assets (Working Capital)	10,809	Positive working capital shows "healthy cash flow," ability to cover short-term debts and operational expenses.
Total Net Assets (Equity)	17,195	Reflects owner's investment and retained earnings; solid equity cushion for a start-up.
Number of Employees	3	Small workforce consistent with micro-entity classification and early-stage business.

Vital Signs Analysis:

• The positive net current assets act like a "strong pulse," signaling liquidity without immediate distress.
• Fixed assets are modest, reflecting the nature of the business and minimal capital-intensive needs.
• No audit requirement as per micro-entity exemption, which is typical for this size but means less external validation.

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3. Diagnosis

From the available financial data, BASH AND BLOW LTD appears financially stable with no immediate symptoms of distress. The company has maintained a positive working capital and net assets, indicating prudent financial management. The balance sheet shows a "healthy heart"—adequate equity and liquidity to support ongoing operations.

However, as a start-up incorporated less than a year ago, this is an early snapshot. The company’s financial health will depend significantly on ongoing revenue generation, cost control, and cash flow management. The absence of profit and loss data limits insight into operational profitability and cash flow trends, which are critical to diagnosing "internal health" beyond the balance sheet.

The control by a single director and owner (Mr Bashar Alsuofi) centralizes decision-making, which can be efficient but also concentrates risk if succession or governance issues arise.

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4. Recommendations

• Cash Flow Monitoring: Maintain vigilant tracking of cash inflows and outflows, as early-stage businesses often face "cash flow fatigue." Establish a cash flow forecast to anticipate shortfalls.
• Build Reserves: Aim to increase retained earnings and net assets over time to create a financial "immune system" against unexpected expenses or downturns.
• Profitability Focus: Work towards generating consistent profits. Consider detailed budgeting and cost analysis to ensure operational efficiency.
• Governance and Controls: As the business grows, consider adding additional directors or advisors to broaden oversight and reduce "single point of failure" risks.
• Financial Reporting: Even though audit is not required, regular internal reviews and possibly engaging an accountant for periodic health checks can provide early warnings of financial symptoms.
• Growth Planning: Develop a strategic plan including marketing, service diversification, and customer retention to drive turnover above micro-entity thresholds sustainably.

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