C09 & C10 AT CATHEDRAL GARDENS LTD

Executive Summary

C09 & C10 AT CATHEDRAL GARDENS LTD shows a stable and healthy financial condition with positive working capital and equity. While there is a slight increase in short-term liabilities, the company remains well-positioned to meet its obligations and maintain operational liquidity. Continued monitoring and cautious growth planning are advised to sustain this financial wellness.

C09 & C10 AT CATHEDRAL GARDENS LTD - Analysis Report

Company Number: 14149545

Analysis Date: 2025-07-29 15:54 UTC

Financial Health Assessment for C09 & C10 AT CATHEDRAL GARDENS LTD

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1. Financial Health Score: B

Explanation:
The company exhibits stable and positive net current assets and shareholders’ funds, indicating a sound financial base for a micro-entity. The slight decline in net current assets from £6,414 to £5,382 over the last year suggests minor liquidity tightening but no immediate distress. The small scale and simple structure are typical for a micro-entity, which limits complexity but also growth potential. Overall, the financial vital signs point to a generally healthy condition with room for cautious monitoring.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	8,453	8,495	Strong short-term resources, mostly stable year over year.
Current Liabilities	3,071	2,081	Increased short-term obligations, warrants monitoring.
Net Current Assets (Working Capital)	5,382	6,414	Positive working capital, indicating healthy operational liquidity.
Shareholders’ Funds (Equity)	5,382	6,414	Equity remains positive, showing retained value and financial stability.
Number of Employees	1	1	Very lean structure, low fixed cost base.

Interpretation of Vital Signs:

• Healthy cash flow analogy: The company maintains a "healthy pulse" with current assets comfortably exceeding current liabilities, ensuring it can meet short-term obligations without strain.
• Symptom of slight liquidity tightening: A modest reduction in net current assets and an increase in liabilities could signal a need to watch cash flow closely but is not alarming at this stage.
• Stable equity base: Retained earnings or capital injection is steady, indicating no erosion of owner value.

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3. Diagnosis

The financial "check-up" reveals a stable micro-entity with sound liquidity and equity. The company operates in the real estate letting sector, with a lean operational footprint (1 employee). The absence of audit requirements and the adoption of micro-entity reporting simplify compliance and reduce costs.

No "symptoms of distress" such as negative working capital, accumulated losses, or significant debt burdens are present. However, the slight increase in current liabilities advises ongoing vigilance in managing payables and cash flow timing.

The company’s small size and micro-accounting status mean growth opportunities or capital raising may be limited without strategic initiatives. Yet, at present, the business is "financially fit," with no immediate red flags.

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4. Recommendations

• Maintain Working Capital Vigilance: Keep a close eye on short-term liabilities to prevent liquidity crunches. Regular cash flow forecasts will help anticipate issues early.
• Explore Growth Opportunities: Although currently stable, consider avenues to increase asset base or revenue streams within the real estate sector to build resilience.
• Cost Control: With only one employee and minimal overheads, continue prudent cost management to preserve cash reserves.
• Prepare for Scaling: If growth is planned, consider transitioning from micro-entity reporting to small company regime accounting to improve financial transparency and access to finance options.
• Regular Financial Review: Conduct periodic reviews of the balance sheet and cash position to detect emerging risks or opportunities, akin to routine health screenings.

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