BUILD SCALE REPEAT LTD

Executive Summary

BUILD SCALE REPEAT LTD shows excellent financial health indicators for a micro-entity in its first year, with strong profitability and solid working capital. The company demonstrates a stable financial condition but should focus on maintaining liquidity and diversifying revenue streams to ensure sustainable growth. Early signs point to a financially sound and well-managed business.

BUILD SCALE REPEAT LTD - Analysis Report

Company Number: 15494763

Analysis Date: 2025-07-19 12:05 UTC

Financial Health Assessment for BUILD SCALE REPEAT LTD (Year ended 28 February 2025)

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1. Financial Health Score: A-

Explanation:
As a newly incorporated micro-entity, BUILD SCALE REPEAT LTD shows strong early signs of financial health with positive net assets, a robust working capital position, and profitability in its first year of operation. The absence of fixed assets is typical for a service-based accounting firm and does not indicate distress. The score reflects excellent liquidity and profitability but acknowledges the nascent stage of the business, which naturally carries some operational risks.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Turnover	169,724	Healthy initial revenue generation for a micro company.
Profit for Period	121,536	Strong profitability, indicating efficient cost management.
Staff Costs	9,100	Low staff expenditure, consistent with a single-employee setup.
Current Assets	80,172	Cash and receivables provide good immediate liquidity.
Current Liabilities	38,536	Short-term obligations are covered 2:1 by current assets.
Net Current Assets	41,636	Positive working capital, a "healthy cash flow" symptom.
Net Assets / Shareholders’ Funds	41,636	Indicates positive equity, no accumulated losses.
Fixed Assets	0	Not unusual for a service firm; no reliance on capital assets.

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3. Diagnosis

• Liquidity and Working Capital: The company’s current assets exceed current liabilities by a comfortable margin, indicating the business can meet its short-term obligations. This is akin to a patient with a strong pulse and stable blood pressure—good signs of financial vitality.

• Profitability: Earning a net profit of £121,536 on turnover of £169,724 reflects excellent operational efficiency and low overheads, suggesting the business model is viable and well-controlled.

• Capital Structure: The entire equity base of £41,636 is retained earnings (profit reserves), given the nominal share capital of £100. This means the company is self-sustaining with internally generated funds rather than relying on external equity injections.

• Growth Stage Consideration: As a company incorporated less than a year ago, it is in the early stages of its lifecycle. While financial metrics are promising, sustained performance over multiple years will better confirm long-term health.

• Risks and Considerations:

  • The business is heavily reliant on its sole director, who is also the principal shareholder and operator, which concentrates operational risk.
  • No fixed assets or tangible collateral limits borrowing capacity but is typical for an advisory firm.
  • No audit required or performed, which is standard for micro entities, so financial data depend on internal controls.

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4. Recommendations

• Maintain Strong Cash Management: Continue monitoring cash flow closely to sustain the healthy working capital status. Avoid overextending credit to clients to preserve liquidity.

• Build Financial Buffers: As the company matures, consider setting aside reserves for unexpected expenses or downturns to strengthen financial resilience.

• Diversify Revenue Streams: Look for opportunities to increase turnover and client base to reduce dependence on any single client or project, improving business stability.

• Formalize Financial Controls: Even though small, implement robust bookkeeping and review processes to ensure accuracy and readiness for future growth or audit requirements.

• Plan for Succession or Additional Staff: Since the company currently operates with a single employee/director, consider strategies for delegation or hiring to mitigate operational risks.

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Medical Analogy Summary

BUILD SCALE REPEAT LTD exhibits the "vital signs" of a financially healthy new business: strong profitability is like a stable heartbeat, and positive net current assets resemble healthy circulation, ensuring the company can meet its immediate demands. The absence of fixed assets is typical for this "patient" profile — a service-oriented firm with minimal physical capital. Vigilance is recommended to monitor for any future "symptoms" of financial distress as the company grows.

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