CONNECTING BRIDGE LTD

Executive Summary

CONNECTING BRIDGE LTD exhibits strong financial health typical of a well-managed micro-entity, with solid liquidity and stable net assets. The company operates with minimal short-term liabilities and maintains a positive working capital buffer, indicating no immediate financial distress. To support future stability and growth, maintaining prudent cash flow management and exploring diversification strategies are recommended.

CONNECTING BRIDGE LTD - Analysis Report

Company Number: 13630448

Analysis Date: 2025-07-20 15:27 UTC

Financial Health Assessment for CONNECTING BRIDGE LTD

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1. Financial Health Score: B

Explanation:
CONNECTING BRIDGE LTD demonstrates a solid financial foundation for a micro-entity. The company has maintained positive net current assets and net assets through the latest reporting periods, indicating an ability to cover short-term liabilities comfortably. While the company's scale and financial complexity are limited (micro-entity classification), it shows healthy signs of liquidity and capital stability. The score "B" reflects sound financial health but acknowledges the typical constraints and risks inherent in small, growing companies.

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2. Key Vital Signs

Metric	Latest (30/09/2024)	Interpretation
Current Assets	£13,617	Cash and short-term assets are modest but sufficient for operational needs.
Current Liabilities	£756	Very low short-term debts, a positive liquidity indicator.
Net Current Assets	£12,861	Strong working capital position, indicating good short-term financial health.
Net Assets (Shareholders Funds)	£12,861	Positive equity base, showing company value exceeds liabilities.
Average Number of Employees	2	Small team size, reflecting micro-entity scale and lean operations.

Additional Context:

• The company operates in the travel agency and temporary employment sectors, which can be sensitive to economic and market fluctuations but currently shows no signs of financial distress.
• The sole director and controlling shareholder holds 75-100% of shares, indicating centralized control which can streamline decision-making but also concentrate risk.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Healthy Cash Flow and Liquidity: The consistent positive net current assets and low current liabilities suggest that the company manages its cash flow well. This is akin to a patient with stable vital signs — no immediate liquidity "symptoms of distress" such as overdue payables or cash shortages.
• Stable Capital Structure: The net assets figure has remained positive and stable across reporting periods, indicating the company is not over-leveraged and maintains a reasonable capital buffer. This resembles a healthy cardiovascular system, where capital cushions the business against operational shocks.
• Small Scale and Limited Complexity: The company’s classification as a micro-entity with only two employees highlights a lean operation with limited financial complexity. While this reduces overhead and risk exposure, it also limits the potential for rapid scale without additional resources.
• No Audit Requirement: The exemption from audit under the Companies Act suggests limited external scrutiny but also reflects low complexity and scale. This is similar to a routine health check rather than a full diagnostic scan — sufficient for now but may need more detailed review if growth accelerates.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Maintain Strong Liquidity: Continue prudent management of receivables and payables to preserve the healthy working capital position. Avoid overextending credit or accumulating short-term debt.

2. Plan for Growth and Diversification: Given the company's micro status and concentration in travel and employment sectors, consider strategies to diversify revenue streams or expand client bases to mitigate sector-specific risks. This is akin to strengthening immune defenses against external shocks.

3. Regular Financial Monitoring: Implement monthly or quarterly financial reviews to detect early warning signs like cash flow tightening or expense overruns before they become critical. This proactive approach acts like ongoing health monitoring to catch symptoms early.

4. Consider Professional Advice for Expansion: If planning to grow beyond micro-entity thresholds, seek expert guidance on financial structuring, tax planning, and regulatory compliance to ensure sustainable scaling.

5. Document and Formalize Processes: As a small company with few employees, ensure that operational and financial controls are documented to support continuity and transparency, enhancing overall corporate health.

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