CLICKPOP MARKETING LTD

Executive Summary

CLICKPOP MARKETING LTD is profitable and maintains healthy liquidity, but a declining turnover and reduced net assets signal caution. The company should focus on revenue growth and cost management to strengthen its financial position and ensure sustainable long-term health.

CLICKPOP MARKETING LTD - Analysis Report

Company Number: 14641521

Analysis Date: 2025-07-29 12:24 UTC

Financial Health Assessment of CLICKPOP MARKETING LTD

---

1. Financial Health Score: C

Explanation:
CLICKPOP MARKETING LTD demonstrates a stable but modest financial position typical of a micro-entity in its early years. The company shows profitability, positive net assets, and sufficient working capital, yet there is a noticeable decline in turnover and net assets compared to the prior year. This score reflects a "fair" level of financial wellness with some symptoms of caution that require monitoring and corrective action.

---

2. Key Vital Signs

Metric	2025 Result	Interpretation
Turnover	£124,169	Slight decrease from £134,946 in prior period; indicates mild revenue contraction.
Profit for Period	£33,741	Positive net profit shows the company remains profitable despite reduced turnover.
Net Current Assets (Working Capital)	£22,867	Healthy positive working capital; company can cover short-term liabilities comfortably.
Net Assets (Equity)	£23,551	Positive equity, but declined nearly 46% from previous year (£43,855), indicating asset erosion.
Staff Costs	£16,520	Increase from prior year (£6,406), suggesting investment in human resources or higher wage costs.
Cost of Materials	£28,384	Reduced from previous year (£37,306), aligns with lower turnover.
Tax on Profit	£7,916	Consistent tax charge reflecting profitability.
Fixed Assets	£684	Minimal fixed assets consistent with service-oriented digital marketing business.
Number of Employees	1	Very lean operation; may indicate reliance on key personnel or outsourcing.

---

3. Diagnosis: What the Numbers Reveal

• Healthy Cash Flow and Profitability: The company is generating positive profits (£33.7k), which is a vital sign of operational health. This indicates that the business model is fundamentally viable and generating value above costs.

• Symptoms of Distress: The turnover decline of about 8% and almost 46% drop in net assets over the year suggest some financial strain or market challenges. The reduced net assets imply either distribution of funds, asset write-downs, or accumulated losses in prior years impacting equity.

• Working Capital Strength: The company maintains a comfortable buffer in current assets over current liabilities (£22.9k), signaling good short-term liquidity and ability to meet obligations promptly.

• Rising Operating Costs: Staff costs have increased substantially (+158%), which may be a strategic investment or a cost pressure. The company should monitor whether this translates into revenue growth or margin improvement.

• Micro Entity Constraints: As a micro-entity, the company benefits from simplified reporting and minimal fixed assets, which is appropriate for a digital marketing consultancy.

• Governance and Control: Strong control concentration with Mr. David Richter holding majority shares and directorship ensures clear decision-making but may limit external oversight.

---

4. Recommendations

• Revenue Growth Focus: Address the revenue decline by intensifying marketing efforts, diversifying client base, or expanding service offerings to stabilize and grow turnover.

• Cost Management: Scrutinize rising staff costs to ensure they are efficient and contribute to productivity. Consider flexible staffing or outsourcing where possible to control fixed expense burden.

• Strengthen Equity Base: Retain a portion of profits to rebuild net assets and improve financial resilience. Avoid excessive drawings or dividends that erode equity.

• Cash Flow Monitoring: Continue diligent management of receivables and payables to maintain healthy working capital and avoid liquidity crunches.

• Strategic Planning: Develop a medium-term strategic plan addressing market positioning, competition, and investment priorities to improve long-term sustainability.

• Risk Management: Regularly evaluate business risks including client concentration, market changes, and economic headwinds to anticipate financial stress symptoms early.

---

Medical Analogy Summary

CLICKPOP MARKETING LTD’s financial vital signs show a company with a "healthy pulse" of profitability and liquidity but displaying "symptoms of fatigue" in shrinking turnover and equity. The business’s "immune system" (working capital) is robust, but without proactive intervention, the "condition" could worsen. Timely "treatment" via cost control and revenue growth strategies is critical to restore full financial vitality.

---