CIRCLE SCAFFOLDING SERVICES LIMITED

Executive Summary

CIRCLE SCAFFOLDING SERVICES LIMITED is currently dormant with minimal financial activity and nominal assets, indicating no operational trading to date. While the company shows no distress symptoms, its financial health is limited by inactivity. To improve, the company should initiate trading activities, build working capital, and implement financial monitoring to ensure future sustainability and growth.

CIRCLE SCAFFOLDING SERVICES LIMITED - Analysis Report

Company Number: 13778925

Analysis Date: 2025-07-20 15:10 UTC

Financial Health Assessment of CIRCLE SCAFFOLDING SERVICES LIMITED

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1. Financial Health Score: D

Explanation:
The company is currently dormant with minimal financial activity reflected in its accounts. The financial metrics are negligible (£2 in assets and equity), indicating no operational trading or business transactions. This status implies the business is in a low-activity or pre-operational phase, which limits any meaningful assessment of financial health. The company is not showing symptoms of distress, but rather a state of financial inactivity.

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2. Key Vital Signs

Metric	Value (2023)	Interpretation
Current Assets	£2	Extremely low; indicates no significant cash or short-term assets.
Net Current Assets	£2	Positive but minuscule working capital; no operational liquidity.
Total Assets Less Current Liabilities	£2	Total net assets are negligible, reflecting minimal or no business activity.
Net Assets / Shareholders Funds	£2	Equity is nominal, consistent with a dormant status.
Account Category	Dormant	No significant financial transactions during the year.
Company Status	Active	Legally active but operationally inactive (dormant).
Directors	2 (Scaffolders)	Directors have relevant industry occupation but company shows no trading activity.

Interpretation:
The vital signs are akin to a patient in a state of rest or hibernation—no active metabolism (business activity), but no visible illness or distress either. The balance sheet is minimal, showing the company is maintaining a legal shell or preparing for future activity.

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3. Diagnosis

Overall Financial Condition:
CIRCLE SCAFFOLDING SERVICES LIMITED is in a dormant state with virtually no financial transactions or business operations reported since incorporation in December 2021. The financial statements reveal an almost negligible asset base (£2), and no liabilities, which means the company has not engaged in trading or incurred debts. This is typical for a newly formed business that has yet to commence active operations or is deliberately kept dormant.

Symptoms Analysis:

• Lack of revenue or expenses: No income, no payments, which means no cash flow.
• Minimal balance sheet size: No investments, no working capital, no fixed assets.
• No audit required: Exemption under dormant company rules confirms inactivity.
• Directors are experienced scaffolders, suggesting readiness to trade in the relevant industry.

Underlying Business Health:
The company is effectively in a "financial coma," not generating income or expenses. This is not pathological but rather a planned non-activity. There is no evidence of financial distress or insolvency. However, without active operations, the company is not generating value or cash flow, which is critical for sustaining business health.

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4. Recommendations

To improve the financial wellness and move from dormancy to operational health, consider the following:

• Commence Trading Activities: Activate business operations to generate revenue and cash flow. Start small pilot projects to build financial momentum.

• Build Working Capital: Secure initial funding or capital injections to support operational expenses and asset acquisition. Healthy cash flow is essential to avoid liquidity symptoms.

• Maintain Compliance: Keep timely filings of accounts and confirmation statements to avoid penalties and maintain legal good standing.

• Financial Planning: Develop a detailed business plan and budget forecasting expected income and expenditures to monitor financial health proactively.

• Monitor Financial Metrics: Once trading starts, track key ratios such as current ratio, profitability margins, and cash conversion cycles to detect early symptoms of distress.

• Engage Professional Advice: Regular financial reviews and advice can help diagnose emerging issues early and prescribe corrective actions.

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