Company Number: 13048819

Analysis Date: 2025-07-19 13:05 UTC

Financial Health Assessment of COLOURED ROCK LIMITED

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1. Financial Health Score: B

Explanation:
COLOURED ROCK LIMITED demonstrates a solid and improving financial position typical of a micro-entity in the performing arts sector. Its net assets have nearly tripled over the past two years, indicating robust growth and effective management of resources. However, the company is still relatively young (incorporated in 2020) and small in scale, with a single employee and modest fixed assets. The score B reflects healthy financial vitality but also leaves room for growth in operational scale and asset base.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£619	Minimal long-term investments; typical for a micro-entity in performing arts.
Current Assets	£211,799	Healthy liquidity pool primarily in cash or receivables; significant increase from previous year.
Current Liabilities	£76,786	Manageable short-term obligations; increased but proportionate to asset growth.
Net Current Assets	£135,013	Strong working capital indicating good short-term financial health ("healthy cash flow").
Net Assets	£135,632	Positive equity base, showing retained earnings and financial stability.
Share Capital	£1.00	Nominal capital; typical for small private companies.
Employee Count	1	Lean operation, possibly owner-managed; low overhead.

Interpretation:

• The net current assets have nearly tripled from £48,557 in 2023 to £135,013 in 2024, which is an excellent sign that the company is generating healthy liquidity and can meet short-term debts comfortably.
• Fixed assets remain minimal, reflecting a business model likely focused on services rather than capital-intensive operations.
• Current liabilities have increased but remain well covered by current assets, showing no immediate liquidity stress.
• The increasing net asset base signals sustained profitability or capital injection, which is a positive "symptom" of financial well-being.

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3. Diagnosis

The financial "symptoms" of COLOURED ROCK LIMITED suggest a company with strong liquidity and growing net worth, which is remarkable for a micro-entity only a few years old. The steady growth in working capital and net assets points to effective cash management and possibly increasing revenues or retained earnings.

The minimal fixed assets and low employee count fit the profile of a service-oriented performing arts company, which typically relies more on human capital and intangible assets rather than heavy physical investment.

There are no signs of financial distress: no overdue filings, no liabilities beyond current ones, and a positive equity position. The company’s financial "vital signs" indicate a healthy and stable business with a sound foundation for future growth.

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4. Recommendations

To enhance financial wellness and prepare for future growth phases, COLOURED ROCK LIMITED should consider:

• Diversify Asset Base: While fixed assets are not critical in performing arts, investing in equipment or intellectual property may support scalability and operational effectiveness.
• Cash Flow Management: Maintain the strong liquidity buffer but ensure active management of receivables and payables to avoid cash flow bottlenecks.
• Growth Planning: Explore strategic opportunities for scaling operations, such as hiring additional staff or expanding service offerings, to leverage the increasing equity base.
• Financial Reporting: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain credibility with stakeholders.
• Risk Assessment: Conduct periodic reviews of financial risks, especially as the company grows, to prevent over-leverage or liquidity issues.
• Stakeholder Communication: Given the sole director and PSC are the same individual, consider establishing advisory or oversight mechanisms to strengthen governance as business complexity increases.

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