CFS ACADEMY LIMITED

Executive Summary

CFS ACADEMY LIMITED is in its initial startup phase, showing a stable but minimal financial position with no liabilities and modest equity. The company's financial "vital signs" reflect compliance and liquidity but limited operational scale. To enhance financial health, the company should focus on building working capital, generating revenue, and maintaining prudent cash flow management.

CFS ACADEMY LIMITED - Analysis Report

Company Number: 15113663

Analysis Date: 2025-07-19 12:43 UTC

Financial Health Assessment of CFS ACADEMY LIMITED

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1. Financial Health Score: D

Explanation:
Given the very limited financial activity and minimal asset base, the company is in a nascent stage with a "fragile" financial condition. The score "D" reflects early startup status with minimal capital and no operating history beyond initial formation. There is no indication of distress, but the company lacks financial robustness typical of a healthy business.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£0	No long-term investment in equipment or property—typical for a new startup or service company.
Current Assets	£100	Minimal cash or equivalents; very limited working capital.
Current Liabilities	£0	No short-term debts or payables; positive but may indicate low business activity.
Net Current Assets	£100	Positive working capital but extremely low absolute amount—healthy but fragile liquidity.
Net Assets (Equity)	£100	Equity capital consists solely of initial share capital; no retained earnings or reserves.
Employees	1	Single employee (likely the director); very small scale operation.
Account Category	Micro	Company qualifies as micro-entity; minimal filing and reporting requirements.
Industry SIC Code	85410	Post-secondary non-tertiary education; typically service-based with low initial capital needs.

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3. Diagnosis: What the Financial Data Reveals About Business Health

"Initial startup phase with healthy but minimal financial vitality."

• The company has just completed its first financial year, showing no liabilities and a modest cash position (£100). This is akin to a patient just born—with no past history but no signs of illness.
• The absence of fixed assets suggests that the company has not invested in property or equipment, common for knowledge or service-based startups.
• The single employee and director ownership structure point to a tightly controlled, small-scale operation.
• No liabilities or debts mean no immediate financial distress, but the very low asset base signals that the company has a limited buffer against operational shocks.
• The fact that accounts and filings are up to date indicates compliance with regulatory requirements—an important aspect of corporate "wellness."
• The company is not generating or retaining earnings yet, which is expected for a first-year entity focusing on setup and initial operations.

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4. Recommendations: Specific Actions to Improve Financial Wellness

a) Build Working Capital:
Aim to increase current assets through capital injections or operational revenue to strengthen the liquidity cushion. This is like building a stronger immune system to withstand future financial stress.

b) Develop Revenue Streams:
Focus on growing client base and income from educational services. Early revenue generation will demonstrate business viability and improve cash flow health.

c) Monitor Cash Flow Closely:
Maintain a healthy cash flow by managing receivables and payables efficiently. Avoid overextending credit or incurring debts prematurely.

d) Plan for Asset Investment:
As the business grows, consider investing in necessary fixed assets or digital infrastructure to enhance service delivery and operational efficiency.

e) Maintain Regulatory Compliance:
Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

f) Consider Financial Forecasting:
Prepare budgets and forecasts to anticipate cash needs and financial milestones, enabling proactive management of financial health.

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