BULIKS LIMITED

Executive Summary

BULIKS LIMITED is financially stable but operating with very limited resources typical of a micro-entity. The company maintains positive working capital and net assets, indicating a healthy but fragile financial state requiring careful monitoring. To ensure long-term viability and growth, the business should focus on strengthening its capital base and closely managing cash flow.

BULIKS LIMITED - Analysis Report

Company Number: SC676862

Analysis Date: 2025-07-20 19:04 UTC

Financial Health Assessment Report for BULIKS LIMITED (as of 31 October 2023)

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1. Financial Health Score: C

Explanation:
BULIKS LIMITED shows a stable but very modest financial position typical of a micro-entity. The net assets and working capital remain positive but are very small in absolute terms, indicating a fragile financial "pulse." The company is neither in distress nor flourishing, resembling a patient with mild symptoms that require careful monitoring and possible intervention to avoid deterioration.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Current Assets	£516	Limited liquid resources; slight increase from prior year.
Current Liabilities	£423	Small short-term obligations; have increased notably.
Net Current Assets (Working Capital)	£93	Positive but very thin buffer; "mildly healthy" short-term liquidity.
Net Assets (Equity)	£93	Equity remains positive but very small; signals minimal financial cushion.
Share Capital	£1.00	Nominal capital invested; typical for micro-entities.
Average Number of Employees	1	Micro-sized operation; low overheads but limited capacity for growth.

Interpretation:
The company’s working capital is positive, indicating it can cover its short-term debts with current assets, which is a "healthy cash flow" sign. However, the small absolute values suggest limited financial resilience. The slight decrease in net assets from £136 (2022) to £93 (2023) may indicate minor erosion of capital or retained earnings, which could be an early "symptom" of financial strain if it continues.

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3. Diagnosis

• Liquidity Condition: The company maintains a positive working capital, which is vital for meeting immediate financial obligations. This is akin to a stable heartbeat indicating ongoing viability.
• Capital Strength: Net assets are positive but minimal, offering a thin margin of safety against unexpected losses or economic shocks. This is like a patient with low but stable blood pressure—stable but vulnerable.
• Growth and Scale: With only one employee and minimal fixed or current assets, the company operates on a very small scale, limiting economies of scale and growth potential.
• Financial Trends: The decrease in net assets over the last year, although modest, signals a need for vigilance. If this trend continues, it might reflect underlying profitability issues or insufficient capital injection.
• Compliance and Governance: The company is current with filings and has no overdue accounts or returns, indicating good "administrative health."

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4. Recommendations

• Increase Capital Buffer: Consider injecting additional equity or retaining more earnings to build a stronger capital base. This will improve the company’s financial "immune system" against shocks.
• Monitor Cash Flow Closely: Keep a tight watch on cash flow to ensure the working capital stays positive and ideally grows, which is crucial for day-to-day survival and operational flexibility.
• Explore Revenue Growth: Review business operations for opportunities to increase revenue or operational efficiency, which may improve profitability and thus strengthen reserves.
• Cost Control: Maintain low operating costs to preserve the thin margin available; avoid unnecessary expenditures that could push the company into a "symptom" of financial distress.
• Regular Financial Reviews: Schedule periodic financial health checks to detect early warning signs of deterioration, analogous to regular medical check-ups.
• Seek Professional Advice on Growth: If the company plans to expand, consult with financial advisors to ensure funding and operational scale are aligned with strategic goals.

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