BETTERSX LIMITED

Executive Summary

BETTERSX LIMITED has shown impressive financial improvement and growth from its founding in 2022 to 2024, with strong working capital and expanding equity. While current liabilities have increased, solid liquidity and asset growth indicate a healthy financial position for a micro-entity. Continued focus on cash flow management and profitability transparency will support sustainable expansion and financial resilience.

BETTERSX LIMITED - Analysis Report

Company Number: 14114272

Analysis Date: 2025-07-20 14:57 UTC

Financial Health Assessment for BETTERSX LIMITED

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1. Financial Health Score: B

Explanation:
BETTERSX LIMITED demonstrates solid financial improvement and a healthy balance sheet for a micro-entity in its second full financial year. The company shows positive net assets, strong working capital, and growing fixed assets, indicating growth and investment. However, as a small educational services business with limited historical data and modest scale, it has room to improve liquidity management and diversify assets for greater resilience.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	13,585	4,331	Increased investment in long-term assets; positive sign of growth.
Current Assets	45,722	622	Significant increase in liquid assets, indicating better cash position or receivables.
Current Liabilities	21,409	1,666	Increased short-term obligations; needs monitoring to ensure timely payment.
Net Current Assets	24,313	(1,044)	Healthy working capital, showing strong short-term financial health.
Net Assets (Equity)	37,898	3,287	Growth in shareholder funds reflecting retained earnings or capital infusion.
Average Number of Employees	2	1	Growth in workforce, indicating business expansion.

Interpretation of Vital Signs:

• The jump from negative to positive net current assets ("healthy cash flow") shows the company has moved from a position of short-term liquidity stress ("symptoms of distress") to financial stability.
• Growth in fixed assets suggests investment in business capacity or infrastructure.
• The increase in current liabilities is notable but manageable given the strong current asset base.
• Net assets have more than tenfold increased, reflecting substantial growth or equity injection.

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3. Diagnosis

BETTERSX LIMITED’s financial "vital signs" indicate a young but rapidly strengthening company. The company has transitioned from a fragile working capital state in 2023 to a robust position with ample short-term assets to cover liabilities in 2024. This signifies "recovery and strengthening" rather than acute distress.

The balance sheet shows a rising equity base, which supports sustainability and can help absorb shocks, a vital sign of "good corporate health." The increase in fixed assets aligns with growth-oriented investment, potentially in educational resources or property.

However, the rise in current liabilities alongside growth warrants attention to avoid liquidity strain. The company’s micro-entity status means financial reporting is simplified, limiting the visibility of profitability and cash flow details, which are crucial for a complete diagnosis.

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4. Recommendations

1. Maintain and Monitor Liquidity:
   Continue to manage current liabilities carefully to avoid short-term cash crunches. Establish a cash flow forecast to monitor inflows and outflows regularly.

2. Build Profitability Transparency:
   Although exempt from full audit, consider preparing detailed internal profit and loss statements to identify sources of revenue and cost drivers. This will help detect early "symptoms" of financial stress.

3. Strengthen Capital Structure:
   Explore opportunities to increase equity or retained earnings through reinvestment of profits or capital raising, enhancing the "immune system" of the business against external shocks.

4. Plan for Sustainable Growth:
   As the company grows, scale operations thoughtfully. The increase in employees signals expansion; ensure that revenue growth keeps pace with rising costs to maintain financial health.

5. Review Debt and Payment Terms:
   Negotiate favourable terms with creditors to improve working capital cycles. Avoid excessive short-term debt accumulation.

6. Consider Professional Financial Advice:
   Engage with financial advisors to optimize tax planning, funding strategies, and financial controls, ensuring long-term wellness.

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