Company Number: 14304807

Analysis Date: 2025-07-29 17:01 UTC

Financial Health Assessment Report: CG NOTTINGHAM LTD

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1. Financial Health Score: B

Explanation:
CG Nottingham Ltd presents a generally stable and improving financial profile characteristic of a young micro-entity. The company has demonstrated significant improvement in net assets over the last financial year, moving from a negative equity position to a positive and growing equity base. While the fixed assets are modest and the company operates with tight working capital, the overall indicators suggest solid foundational health but with some caution due to its early stage and reliance on current liabilities.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£19,907	Small but stable investment in long-term assets appropriate for a micro retail business.
Current Assets	£283,960	Healthy short-term assets, indicating liquidity to cover short-term obligations.
Current Liabilities	£249,900	High short-term obligations but manageable given the current assets.
Net Current Assets	£38,416	Positive working capital ("healthy cash flow") indicating ability to meet immediate debts.
Total Net Assets	£56,323	Positive net worth, a sign of financial resilience and growing shareholder equity.
Shareholders Funds	£56,323	Mirrors net assets, confirming equity backing.
Employees	3 (average)	Small team size fitting micro-entity profile; operational capacity is limited but focused.

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3. Diagnosis: Financial Condition and Business Health

CG Nottingham Ltd is in the early stages of its business lifecycle, incorporated in August 2022, and classified as a micro-entity. The financials show a notable turnaround from the previous year when the company had negative net assets (a symptom of financial distress) to a positive and growing net asset position in the latest year. This improvement signals a recovery and strengthening of the company's financial "immune system."

The company's working capital is positive, indicating it has sufficient current assets to cover its short-term liabilities, which is crucial for day-to-day operational health. The increase in current assets, particularly cash or equivalents, suggests improved liquidity—a vital sign of financial wellness. However, the current liabilities remain high relative to fixed assets, implying that the company relies heavily on short-term financing or payables to support its operations.

The modest fixed assets base is typical for a retail company focusing on mail order and internet sales, where physical assets are limited. The small number of employees aligns with the micro-entity status and manageable operational scale.

The ownership structure shows three directors each controlling significant shares and voting rights, which should facilitate unified decision-making but also concentrates control.

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4. Recommendations: Improving Financial Wellness

• Strengthen Cash Flow Management: Maintain and enhance liquidity by monitoring receivables and payables closely to avoid any future cash flow "symptoms of distress." Consider negotiating longer payment terms with creditors or faster collections from customers.

• Reduce Reliance on Short-Term Liabilities: Explore options to convert some current liabilities into longer-term financing to improve financial stability and reduce liquidity pressure.

• Build Fixed Asset Base Prudently: As the business grows, consider investing in technology or infrastructure that enhances operational efficiency and supports scaling, but avoid overcommitting capital upfront.

• Maintain Regular Financial Reviews: Given the company’s early stage, institute monthly or quarterly financial health check-ups to detect early warning signs and adjust strategies proactively.

• Diversify Revenue Channels: Since the company operates in retail via mail order and internet, expanding product lines or customer reach can mitigate business risks and stabilize income.

• Retain Profits to Build Equity: Continue retaining earnings to strengthen shareholders’ funds and build a buffer against future uncertainties.

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