C2 PRECISION LTD

Executive Summary

C2 Precision Ltd is financially healthy with strong liquidity and steadily growing equity, reflecting positive profitability and sound management. The company’s current scale and asset base are typical for a micro retail business but indicate potential for measured growth. Continued focus on cash flow, capital structure, and prudent investment will support ongoing financial wellness and stability.

C2 PRECISION LTD - Analysis Report

Company Number: 13256323

Analysis Date: 2025-07-20 18:17 UTC

Financial Health Assessment: C2 PRECISION LTD (Private Limited Company, Micro Entity)

---

1. Financial Health Score: B

Explanation:
C2 Precision Ltd shows a solid and improving financial position typical of a young micro-entity. The company’s net assets and shareholders’ funds have steadily increased year-on-year, reflecting growth and retained earnings. The positive net current assets and increasing working capital indicate healthy liquidity. However, the small scale of operations, limited fixed assets, and relatively narrow capital base reflect a company still in early growth stages. There is room to strengthen cash flow management and asset base to secure long-term resilience.

---

2. Key Vital Signs

Vital Sign	Latest Value (2024)	Interpretation
Fixed Assets	£6,019	Modest investment in long-term assets, typical for micro retail.
Current Assets	£136,429	Healthy short-term assets, primarily cash or receivables, supporting operations.
Current Liabilities	£93,979	Debts due within one year; manageable but requires monitoring.
Net Current Assets (Working Capital)	£42,450	Positive and improving; “healthy cash flow” symptom. Sufficient buffer to cover short-term debts.
Total Assets Less Current Liabilities	£48,469	Indicates total net assets after short-term obligations.
Shareholders’ Funds (Equity)	£48,469	Equity capital has grown steadily, a sign of retained profits and reinvestment.
Share Capital	£1.00	Nominal capital indicating founder’s equity investment; typical for small startups.
Employee Count	1	Very small operation; low overheads but limited scale.

---

3. Diagnosis: Financial Condition and Business Health

Liquidity and Working Capital:
The company exhibits strong liquidity, with current assets comfortably exceeding current liabilities by a growing margin. This “healthy blood flow” shows the business can meet its short-term obligations without distress.

Profitability and Equity Growth:
The consistent increase in shareholders’ funds from £2,722 (2020) to £48,469 (2024) implies cumulative retained earnings or capital injections, reflecting positive profitability or owner investment. The balance sheet strength is improving, which is a critical sign of financial stability.

Asset Base:
Fixed assets remain low but have increased slightly, signaling measured investment in operational capacity. Given the company’s micro size and retail focus on sports goods, the asset base aligns with expected business needs.

Scale and Operational Capacity:
With only one employee and minimal share capital, the company operates at a micro scale. This limits economies of scale and may restrict rapid growth but also keeps overheads low.

Risk Indicators:
No indications of overdue filings or regulatory non-compliance; director is active and stable. No signs of financial distress or insolvency symptoms.

---

4. Recommendations to Improve Financial Wellness

• Enhance Cash Flow Management:
  Continue monitoring trade receivables and payables closely to maintain or improve working capital. Avoid overextending credit terms especially in retail.

• Consider Capital Injection or Retained Earnings Strategy:
  Given the nominal share capital, consider formalising capital structure or reinvesting profits to build a stronger equity buffer, improving creditworthiness for suppliers or lenders.

• Investment in Fixed Assets:
  Gradually increase investment in fixed assets (e.g., retail infrastructure, inventory management systems) to support growth and operational efficiency.

• Scale Operation Prudently:
  Evaluate possibilities for scaling staff or outsourcing to manage growth without increasing fixed costs excessively.

• Regular Financial Review:
  Given the company’s micro size, maintain regular financial health checks similar to this assessment to detect symptoms of financial stress early.

---

Medical Analogy Summary:

C2 Precision Ltd’s financial “vital signs” suggest a company with a strong pulse and healthy circulation — good liquidity and growing equity provide resilience. The business shows no symptoms of financial distress, but as a young micro-entity with minimal fixed assets and a single employee, it is still in the early stages of development. Proactive management of cash flow and capital investment will ensure the company remains in good financial health as it grows.

---