CARPET WISE NOTTS LTD

Executive Summary

CARPET WISE NOTTS LTD shows a solid start with positive working capital and net assets, indicating good short-term financial health for a new micro-entity. While the company’s financial condition is stable, its early stage and limited financial history suggest cautious optimism with a focus on building profitability and operational resilience. Continued careful cash flow management and strategic growth planning will be critical to its future sustainability.

CARPET WISE NOTTS LTD - Analysis Report

Company Number: 15437243

Analysis Date: 2025-07-20 15:49 UTC

Financial Health Assessment for CARPET WISE NOTTS LTD

---

1. Financial Health Score: B

Explanation:
CARPET WISE NOTTS LTD is a newly incorporated micro-entity with a modest but positive net asset base and working capital. The company demonstrates a "healthy cash flow" symptom with net current assets of £7,026, indicating it can cover its short-term liabilities. However, as a start-up with limited financial history, there is inherent uncertainty, and growth potential remains to be proven. This earns the company a solid B grade—good initial financial footing but early stage caution advised.

---

2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£31,055	Indicates available liquid and short-term assets; a good "circulatory system" for daily operations.
Current Liabilities	£24,029	Obligations due within one year; manageable given assets.
Net Current Assets (Working Capital)	£7,026	Positive working capital signals the company can meet immediate debts, a sign of financial "vitality."
Net Assets / Shareholders' Funds	£7,026	Reflects equity cushion; positive net assets indicate solvency at this early stage.
Number of Employees	3	Small workforce consistent with micro-entity status; lean operational structure.

---

3. Diagnosis: Financial Condition Assessment

CARPET WISE NOTTS LTD is in the infancy stage of its business lifecycle, incorporated in January 2024, with its first financial year ending December 2024. The company reports positive net current assets and overall net assets, meaning it currently has a stable liquidity position and solvency. The absence of any long-term liabilities or negative equity is a good sign, akin to an individual with no outstanding debts and some savings in the bank.

The company’s financial "pulse" is steady, with a positive working capital indicating it can comfortably cover short-term obligations. However, the scale is limited—both in size and operating history—which means the company is vulnerable to external shocks or unexpected expenses. The director change within the first few months is a minor "symptom" but not necessarily a cause for alarm if well managed.

No profit and loss account was filed publicly, typical for micro-entities, so profitability and cash flow trends cannot yet be assessed. The company’s SIC codes indicate it operates in retail of carpets and furniture, a sector that can be competitive and sensitive to consumer spending cycles.

---

4. Recommendations: Actions to Improve Financial Wellness

• Maintain Strong Working Capital: Continue to monitor cash flow closely to ensure the company remains liquid and can withstand operational expenses and supplier payments promptly.

• Build Profitability Data: As the company matures, filing full accounts including profit and loss will provide a clearer picture of operational health and allow for better financial planning.

• Cost Control & Efficiency: With a small team, ensure overhead costs are tightly controlled to preserve margins, especially important in retail sectors with thin margins.

• Diversify Revenue Streams: Explore opportunities to increase product offerings or services to expand market share and reduce dependency on a single product category.

• Governance Stability: Ensure clear governance structures and director roles are stable to avoid management "stress" that can impact strategic decisions.

• Prepare for Growth: As the company grows beyond micro-entity thresholds, plan for more robust financial management and possibly external financing to fuel expansion.

---