CONGRESS MUSIC LIMITED

Executive Summary

Congress Music Limited shows excellent financial health with strong liquidity and growing equity, indicating solid operational performance and prudent management. Continued focus on cash flow, governance diversification, and strategic investment will support sustained growth and risk mitigation.

CONGRESS MUSIC LIMITED - Analysis Report

Company Number: 13175718

Analysis Date: 2025-07-29 17:24 UTC

Financial Health Assessment Report for Congress Music Limited

---

1. Financial Health Score: A-

Explanation:
Congress Music Limited demonstrates a strong financial position with healthy liquidity, solid net assets relative to liabilities, and consistent growth in shareholders' funds over the last three years. The company’s vital signs indicate financial robustness typical of a well-managed small private limited company. The slight deduction from a perfect A is due to the concentration of equity in a single director and modest scale of operations, which could pose risks if any unexpected shocks occur.

---

2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	194,164	194,382	Stable current assets, mainly liquid cash and debtors.
Cash at Bank	187,045	183,812	Very healthy cash reserves, indicating strong liquidity.
Debtors	7,119	10,570	Moderate receivables, reasonable for retail sector.
Current Liabilities	45,677	74,274	Decrease in short-term debts, improving liquidity.
Net Current Assets	148,487	120,108	Positive working capital, good short-term financial health.
Net Assets	163,535	132,549	Growing net worth, showing retained earnings accumulation.
Shareholders’ Funds	163,535	132,549	Equity growth reflects profitability and capital retention.

Additional Observations:

• Tangible fixed assets increased modestly to £18,578, indicating reinvestment in business infrastructure.
• Provisions for liabilities rose slightly to £3,530, a normal aspect of business operations.
• Share capital remains nominal (£1), typical for a small private company.

---

3. Diagnosis

Congress Music Limited exhibits strong financial health, akin to a patient with a robust cardiovascular system and no apparent symptoms of distress. The cash reserves are particularly impressive, providing a solid buffer against operational or market shocks. The company's working capital position is healthy, indicating it can meet its short-term obligations comfortably without liquidity strain.

The reduction in current liabilities from the previous year suggests improving management of payables and other short-term debts, which is a positive sign of financial discipline. The steady growth in net assets and shareholders’ funds reflects profitability and prudent retention of earnings, strengthening the company’s equity base.

However, the company is in the early stages of its lifecycle (incorporated in 2021), and the small scale of operations with a single director who holds full control introduces some governance and business continuity risks. These are manageable but worth monitoring as the business grows.

---

4. Recommendations

• Maintain Healthy Cash Flow: Continue to monitor cash inflows and outflows vigilantly to sustain liquidity. Avoid tying up excessive cash in slow-moving inventory or long-term receivables.
• Diversify Management Input: Consider expanding the board or involving external advisors to mitigate single-person dependency risks, improving governance and strategic oversight.
• Manage Payables Efficiently: The marked reduction in current liabilities is positive; maintain this discipline to prevent liquidity squeeze. Negotiate favourable payment terms with suppliers where possible.
• Plan for Growth Investments: With strong cash reserves, the company has capacity to invest in marketing, product diversification, or technology upgrades to fuel growth in the competitive retail music sector.
• Implement Risk Management: Formalise risk assessment procedures for financial and operational risks, including business continuity plans given the concentrated ownership.
• Regular Financial Reviews: Continue timely filing and internal review of financials to detect any early symptoms of financial distress or opportunity areas.

---

Executive Summary

Congress Music Limited is in robust financial health, boasting strong liquidity and steadily growing net assets. Its financial "vital signs" indicate an absence of distress with ample cash reserves to cover short-term obligations. To ensure continued wellness, the company should maintain cash flow discipline, strengthen governance, and strategically plan for growth.