CAREFULLY CODED LTD

Executive Summary

CAREFULLY CODED LTD demonstrates strong financial health with positive net assets and improving working capital, reflecting a young but stable business. The company shows promising growth through asset investment and maintains good liquidity, positioning it well for continued expansion. Ongoing vigilance on liabilities and strategic financial planning will support sustained wellness.

CAREFULLY CODED LTD - Analysis Report

Company Number: 14206024

Analysis Date: 2025-07-29 12:56 UTC

Financial Health Assessment for CAREFULLY CODED LTD (as of 30 June 2024)

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1. Financial Health Score: B

Explanation:
CAREFULLY CODED LTD exhibits a solid financial position with positive net assets and a good improvement in net current assets over two years, indicating healthy working capital management. The company is small and in its early years, showing promising growth in asset base and liquidity. However, as a micro-entity with limited financial history, some caution is warranted until a longer track record is established.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Net Current Assets	9,202	1,999	Healthy increase in working capital, indicating better short-term financial health and liquidity.
Current Liabilities	-6,777	-1,368	Increase in short-term obligations; manageable given positive net current assets.
Total Assets Less Current Liabilities	12,275	1,999	Significant asset base growth, signaling expansion or capital investment.
Net Assets (Equity)	12,275	1,999	Positive equity reflects residual value belonging to owners; strong improvement year-over-year.
Fixed Assets	3,073	0	Investment in long-term assets, indicating growth and capital expenditure.
Average Number of Employees	2	N/A	Small workforce consistent with micro-entity status; manageable overhead.

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3. Diagnosis

CAREFULLY CODED LTD is exhibiting signs of robust financial health for a young micro-entity. The "vital signs" show a company moving from a modest asset base to a more substantial one within two years, underpinned by a healthy increase in net current assets and positive net assets. This suggests good liquidity and solvency, with sufficient short-term assets to cover liabilities comfortably—akin to a patient showing steady recovery with improved vital signs.

The increase in current liabilities is a "symptom" to watch but is currently well-covered by current assets, indicating no immediate distress. The acquisition of fixed assets signals investment in the business's productive capacity, reflecting confidence in future operations. The limited employee count is typical for a micro business, keeping overheads low.

The balance sheet shows no signs of financial "ailments" such as negative equity or poor liquidity. The company is compliant with filing deadlines and operates within the small-scale financial reporting framework, reducing administrative burdens. This healthy cash flow position and balance sheet strength bode well for continued operational stability.

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4. Recommendations

• Maintain Working Capital Vigilance: Continue monitoring the increase in current liabilities to ensure they remain manageable relative to current assets, preventing liquidity strains.

• Document Growth Strategy: As the company grows its asset base, formalize plans for capital investment and operational scaling to ensure sustainable growth without overextension.

• Financial Forecasting: Develop cash flow forecasts and budgets to anticipate future funding needs and avoid potential shortfalls.

• Build Reserves: Aim to build retained earnings reserves gradually to cushion against unforeseen expenses and support reinvestment.

• Explore External Funding: If growth ambitions accelerate, consider external financing options (e.g., grants, loans) to support asset acquisitions while preserving liquidity.

• Regular Financial Reviews: Schedule periodic financial health check-ups to monitor trends, especially as the company transitions beyond micro-entity thresholds.

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