CONTROLWORX LTD

Executive Summary

CONTROLWORX LTD shows strong financial health with excellent liquidity, growing equity, and robust working capital. The company operates with a healthy cash reserve and no financial distress signals, indicating sound financial management. Monitoring the recent absence of trade debtors will be important to ensure sustained revenue streams going forward.

CONTROLWORX LTD - Analysis Report

Company Number: 12831366

Analysis Date: 2025-07-20 15:11 UTC

Financial Health Assessment for CONTROLWORX LTD

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1. Financial Health Score: A-

Explanation:
CONTROLWORX LTD demonstrates a robust financial position with strong liquidity, positive net assets, and steady growth in shareholder funds. The company maintains a healthy cash reserve, low current liabilities relative to assets, and no signs of financial distress. The slight deduction from a perfect score reflects the absence of trade debtors in the latest year, which may indicate changes in revenue recognition or customer credit terms that warrant monitoring.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	123,594	Healthy level of short-term resources available
Cash on Hand	123,594	Excellent cash liquidity, implies strong cash flow
Current Liabilities	24,474	Low short-term financial obligations
Net Current Assets	99,120	Strong working capital—good short-term financial health
Net Assets (Equity)	102,193	Positive net worth indicating company solvency
Shareholders’ Funds	102,193	Reflects accumulated retained earnings and equity
Tangible Fixed Assets	3,073	Modest investment in physical assets
Trade Debtors	0	Unexpected drop from prior years, could affect revenue recognition
Profit and Loss Account	102,093	Retained earnings growing steadily, showing profitability

Interpretation of Vital Signs:

• Liquidity: Cash at £123,594 covers current liabilities by over 5 times, indicating a very healthy cash flow status. This suggests the company can easily meet its short-term obligations without strain—a sign of financial vitality.
• Working Capital: Positive and increasing working capital (net current assets) is a key symptom of operational efficiency and financial stability.
• Solvency: Positive net assets and shareholders’ funds confirm the company’s ability to cover all its liabilities with its assets, a sign of good financial health and no signs of distress.
• Revenue Recognition: The absence of trade debtors in 2024 is notable compared to £20,593 in 2023 and prior years. This could be due to changes in invoicing or payment terms, or a shift to upfront payments or cash sales, which may positively impact cash flow but should be monitored for sustainability.

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3. Diagnosis

CONTROLWORX LTD is in a healthy financial state, akin to a patient with strong vital signs: stable equity, excellent liquidity, and consistent asset growth. The company’s balance sheet shows a strong buffer in cash and net current assets, which implies good management of working capital and operational cash flow. The increase in net assets and shareholders’ funds year-on-year indicates retained profits and profitability.

The "symptom" of zero trade debtors in the latest year could reflect a strategic shift in credit policy or revenue model, which may be beneficial in reducing credit risk but should be reviewed to ensure ongoing revenue generation is sustained.

There are no signs of financial distress such as negative equity, liquidity crunch, or rising liabilities. The company benefits from a low overhead structure with only one employee (the director), keeping operating costs low.

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4. Recommendations

• Monitor Trade Debtors: Investigate the cause of trade debtors falling to zero. Confirm whether this is due to a change in business model, payment terms, or customer base. Ensure this does not indicate a decline in sales or delayed recognition of revenue.
• Maintain Healthy Cash Management: Continue strong cash flow management practices to keep liquidity at comfortable levels. Consider investing excess cash sensibly to enhance returns without compromising liquidity.
• Review Fixed Asset Utilization: With tangible fixed assets increasing, ensure these investments are contributing effectively to revenue growth or operational efficiency.
• Plan for Growth: Given the solid financial foundation, consider strategic growth opportunities such as expanding services, marketing, or hiring to increase capacity while maintaining financial discipline.
• Regular Financial Review: Maintain routine financial health checks each accounting period to catch early symptoms of any financial stress and adjust operations accordingly.

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Executive Summary