Company Number: 13191202

Analysis Date: 2025-07-29 15:50 UTC

Financial Health Assessment for BLU LEAF LIMITED (As of 28 February 2024)

---

1. Financial Health Score: B

Explanation:
BLU LEAF LIMITED demonstrates a solid financial position for a micro-entity with consistent growth in net assets and a healthy liquidity position. The increase in net assets from £28,302 in 2023 to £61,588 in 2024 signals strengthening equity and business resilience. However, the company’s limited size, modest share capital, and presence of long-term creditors temper the rating from an A to B. Overall, the company shows signs of financial vitality but with room for cautious improvement.

---

2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£86,853	Strong short-term resources to cover liabilities. Good liquidity.
Current Liabilities	£25,265	Moderate short-term obligations; manageable given assets.
Net Current Assets	£86,853	Indicates robust working capital – a symptom of healthy day-to-day operations.
Total Net Assets	£61,588	Equity balance reflects accumulated retained earnings and capital; growing steadily.
Share Capital	£100.00	Minimal initial capital; typical for a young micro-entity.
Average Number of Employees	2	Small, focused team consistent with micro-entity classification.
Long-term Creditors	£25,265	Presence of non-current liabilities requires monitoring; manageable but notable.

---

3. Diagnosis

BLU LEAF LIMITED displays the financial "vital signs" of a young but fundamentally sound business. The company’s liquidity (ability to meet short-term debts) is robust, as evidenced by current assets significantly exceeding current liabilities. This is akin to a "healthy pulse" in cash flow terms, suggesting the company can comfortably fund ongoing operations and absorb minor shocks.

The net assets have more than doubled from £28,302 to £61,588 within a year, indicating the business is generating and retaining profits or increasing value—much like a patient gaining strength after initial treatment.

The consistent number of employees (2) fits the micro-entity profile and suggests controlled operational scale without excess overheads. However, the presence of £25,265 creditors falling due after more than one year points to some long-term financial obligations. While not alarming, this is a "symptom" to watch, as it could strain resources if business growth slows.

No audit is required, and the company complies with small company regulations, reducing administrative burden and cost. Directors have maintained timely filings, indicating good governance and compliance health.

The company operates in business and domestic software development, a sector typically reliant on intellectual capital and potentially volatile market conditions. Thus, maintaining liquidity and capital growth is crucial.

---

4. Recommendations

• Monitor Long-term Creditors:
  Regularly review the terms and repayment schedules of long-term liabilities to avoid future liquidity constraints. Proactively negotiating terms or refinancing can prevent distress symptoms.

• Strengthen Capital Base:
  Consider increasing share capital or retained earnings reinvestment to buffer against risks and fund growth initiatives. This acts like building stronger "bones" for the company’s financial structure.

• Maintain Healthy Cash Flow:
  Continue rigorous monitoring of cash inflows and outflows to ensure ongoing liquidity remains strong, especially important in the software development sector which may have fluctuating revenues.

• Growth and Diversification:
  Explore opportunities to diversify income streams or scale operations prudently to improve net assets further, enhancing the company’s financial stamina.

• Governance and Compliance:
  Maintain timely filing and compliance to avoid regulatory penalties, which can be likened to preventing infections that could weaken the firm’s financial health.

• Risk Management:
  Regularly assess business risks, including market, credit, and operational risks, to anticipate and mitigate potential financial stress.

---