CONNECT WITH IMPACT LTD

Executive Summary

CONNECT WITH IMPACT LTD is financially stable with strong working capital and positive net assets, indicating healthy liquidity and solvency. However, a notable decline in current assets warrants close cash flow monitoring to avoid potential liquidity strain. Maintaining prudent liability management and improving receivables control will support sustained financial wellness.

CONNECT WITH IMPACT LTD - Analysis Report

Company Number: 12790104

Analysis Date: 2025-07-20 17:45 UTC

Financial Health Assessment: CONNECT WITH IMPACT LTD (as of 31 October 2024)

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1. Financial Health Score: B

Explanation:
CONNECT WITH IMPACT LTD shows a solid financial footing typical of a micro-entity business. It maintains positive net assets and healthy working capital, indicating good liquidity and solvency. However, a noticeable decrease in current assets compared to the prior year and a slight dip in net assets signals some caution. The company is financially stable but should monitor cash flow and asset management closely to avoid early "symptoms of distress."

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	2,117	Modest investment in long-term assets, stable.
Current Assets	33,392	Reduced from previous year’s £53,493; potential tightening of cash/debtor position.
Current Liabilities	7,945	Significantly decreased from £26,414, improving short-term obligations coverage.
Net Current Assets	25,447	Strong positive working capital, healthy liquidity.
Total Net Assets	26,584	Positive equity base, indicates solvency.
Share Capital	100	Minimal, typical for micro-entities.
Average Employees	1	Lean operation, low overhead risk.

• Working Capital (Net Current Assets): The company has a "healthy cash flow" buffer with current assets exceeding liabilities by £25,447, which is a strong liquidity indicator.
• Net Assets: Positive and stable at £26,584, showing the company is solvent and has shareholder equity to absorb shocks.
• Current Asset Reduction: A significant fall from £53,493 to £33,392 raises a "symptom" that cash or receivables may have been used or reduced, warranting monitoring.
• Current Liabilities Drop: The reduction in liabilities suggests better management or repayment of short-term debts, a positive sign.

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3. Diagnosis: Overall Financial Condition

The company is in a financially stable condition, showing no immediate signs of distress such as negative working capital or net liabilities. The "vital signs" suggest that while the company is solvent and liquid, the drop in current assets compared to the prior year could be an early warning sign that cash reserves or receivables have been drawn down. This may reflect investment in operations, repayment of liabilities, or slower collections.

The lean workforce (1 employee) implies low fixed costs, which limits financial strain. The company benefits from a simple capital structure and maintains compliance with filing deadlines, which supports ongoing operational health.

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4. Recommendations

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

• Monitor Cash Flow Closely: Investigate the cause of the current asset reduction to ensure it is not due to delayed payments or cash drain. Establish clear cash flow forecasts.
• Strengthen Receivables Management: If receivables are a significant component of current assets, tighten credit control to avoid liquidity crunches.
• Maintain Low Liabilities: Continue managing current liabilities prudently to sustain positive working capital.
• Plan for Asset Investment: Fixed assets are modest but stable. Ensure any investment improves operational capacity without overextending finances.
• Build a Financial Cushion: Aim to gradually increase retained earnings and shareholder funds to buffer against future economic uncertainty.
• Regular Financial Reviews: Conduct periodic financial health checks to detect early symptoms of potential distress, such as reduced liquidity or rising liabilities.

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