BLACK SWAN S & L LIMITED

Executive Summary

BLACK SWAN S & L LIMITED exhibits a stable financial condition typical of a newly formed micro-entity consultancy, with positive liquidity and equity indicating foundational health. While current resources are modest, the company benefits from parent company backing and no signs of distress. Focused management of working capital and strategic investments will be key to strengthening its financial resilience and supporting growth.

BLACK SWAN S & L LIMITED - Analysis Report

Company Number: 14719540

Analysis Date: 2025-07-29 13:43 UTC

Financial Health Assessment: BLACK SWAN S & L LIMITED (As of 31 March 2024)

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1. Financial Health Score: B

Explanation:
BLACK SWAN S & L LIMITED demonstrates a generally sound financial position for a newly incorporated micro-entity. The company maintains positive net current assets and shareholders' funds, indicating a stable foundation. However, given the very small scale, limited asset base, and minimal operating history, the rating reflects potential vulnerability to market or operational shocks, common in early-stage businesses.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,086	Very low long-term asset base, typical for a micro consultancy.
Current Assets	20,971	Adequate short-term resources, indicating available cash/debtors.
Current Liabilities	17,460	Short-term obligations, manageable but relatively high vs assets.
Net Current Assets (Working Capital)	3,511	Positive working capital, a sign of healthy liquidity.
Total Assets Less Current Liabilities	4,597	Overall positive asset position after covering short-term debts.
Shareholders Funds (Equity)	3,973	Positive equity, indicating owners' stake and retained earnings.

Additional Context:

• The company employs only 1 person on average, consistent with micro-entity status.
• The company is fully controlled by Trax Holdings Limited, which owns 75-100% shares and voting rights, suggesting strong backing or parent company support.
• No overdue filings or signs of regulatory distress.
• Directors are professionally diverse but no red flags in appointments or disqualifications.

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3. Diagnosis: Financial Symptoms and Underlying Health

• Healthy Cash Flow Proxy: The positive net current assets (£3,511) are akin to a patient with a stable heartbeat, showing the company can cover short-term liabilities with its current assets, a fundamental sign of financial health.
• Early Stage Growth Phase: Given incorporation in March 2023 and first financials for 2024, the company is in the formative phase with limited fixed assets and modest capital. This is typical for a consultancy start-up, where intellectual capital is more critical than physical assets.
• No Signs of Financial Distress: Creditors are present but not overwhelming relative to current assets; accruals and deferred income are minimal (£624). No negative equity or net liabilities are visible, indicating no immediate insolvency risk.
• Limited Financial Cushion: The small scale of operations means the company has little room for error or unexpected expenses. This is the financial equivalent of a patient with a mild condition but needing careful monitoring.
• Support from Parent Entity: Significant control by Trax Holdings Limited may provide financial and operational support, cushioning risks.

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4. Recommendations: Prescriptions for Financial Wellness

1. Strengthen Working Capital:

   • Aim to increase the net current assets buffer by accelerating debtor collections and managing creditor terms. This will build resilience against cash flow volatility.

2. Build Fixed Assets or Intellectual Property:

   • Consider investing in tools, software, or proprietary methodologies that enhance service delivery and create longer-term value.

3. Maintain Rigorous Financial Controls:

   • Ensure timely invoicing, expense tracking, and budgeting to avoid liquidity crunches typical in early-stage consultancies.

4. Leverage Parent Company Support:

   • Explore avenues for financial or operational backing from Trax Holdings Limited to secure growth capital or shared services efficiencies.

5. Plan for Growth and Diversification:

   • As the company stabilizes, broaden client base and service offerings to reduce dependency on few revenue streams.

6. Monitor Regulatory Compliance:

   • Continue punctual filings and maintain transparent governance to avoid penalties or reputational damage.

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