Company Number: 15471772

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

Financial Health Assessment Report: COCOLLECTIVE STUDIO LTD

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1. Financial Health Score: B

Explanation:
The company demonstrates a solid start with positive net assets and net current assets, suggesting a financially stable position for a micro-entity in its first full financial year. The absence of debt beyond current liabilities and a healthy working capital position indicate good liquidity. However, given the company's very recent incorporation and small scale, the financial base is still nascent, warranting cautious optimism and continued monitoring.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	361	Minimal investment in long-term assets, typical for a new micro-entity.
Current Assets	12,095	Includes cash and receivables; a healthy cash position relative to liabilities.
Current Liabilities	4,323	Short-term obligations are manageable and less than current assets, indicating good short-term financial health.
Net Current Assets (Working Capital)	7,772	Positive working capital indicating the company can comfortably cover its immediate debts ("healthy cash flow").
Total Assets Less Current Liabilities	8,133	Shows overall asset strength after settling short-term debts.
Net Assets (Shareholders’ Funds)	7,383	Equity base implies the company is solvent with no accumulated losses reported—"financially fit".
Number of Employees	0	No staff costs yet, typical for a start-up phase.
Profit & Loss Account	Not filed	Lack of P&L limits insight into profitability; current data focuses on balance sheet health.

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3. Diagnosis

Underlying Financial Condition:
COCOLLECTIVE STUDIO LTD’s financial “vital signs” suggest a company in the early stages of development with a sound foundation. The positive net current assets signal that the company has sufficient short-term liquidity to meet its immediate obligations without financial strain. The modest fixed asset base is normal for a service-oriented business in video production that may rely more on talent and intellectual property than heavy capital investment.

The absence of employees indicates a lean operating model, possibly owner-operated or using freelance/contract resources, which helps conserve cash but may limit growth capacity. The company holds no long-term debt or significant liabilities, reducing financial risk.

The lack of a profit and loss statement means we cannot yet assess profitability or operational efficiency. However, the positive equity and net asset position indicate no accumulated losses so far—an encouraging sign in a first-year micro-entity.

Overall, the company shows no symptoms of financial distress such as negative working capital, excessive debt, or depletion of equity. It is currently in "good health" for its size and stage.

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4. Recommendations

To maintain and improve financial wellness, consider the following tailored actions:

• Monitor Cash Flow Closely: Maintain the current positive working capital by managing receivables and payables efficiently. Healthy cash flow is vital to sustain operations and fund growth.
• Begin Profit & Loss Tracking: Although not required for micro-entities, start internal profit and loss tracking to gain insight into operating performance, cost control, and profitability trends.
• Plan for Growth Investment: As business expands, plan for investment in equipment, software, or human resources. Balanced growth supported by sound financial planning will avoid overextension.
• Consider Employee Hiring Strategy: Evaluate the potential benefits and costs of employing staff versus contractors. A strategic approach to workforce can support scaling while managing expenses.
• Maintain Compliance and Timely Filings: Continue timely submission of accounts and confirmation statements to avoid penalties and maintain good standing.
• Build Financial Reserves: Aim to build retained earnings over time to cushion against future downturns or unexpected expenses.
• Engage in Financial Forecasting: Develop simple cash flow and budget forecasts to anticipate funding needs and optimize resource allocation.

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