Company Number: 13850155

Analysis Date: 2025-07-29 20:35 UTC

Financial Health Assessment for CORE COMPUTERS AND WEBSITES LIMITED

---

1. Financial Health Score: B-

Explanation:
The company demonstrates a positive net asset position and an improving working capital situation, indicating basic financial stability. However, the absolute size of current assets and net assets remains modest, typical for a micro-entity in its early years of operation. The financials suggest a company in a nascent growth stage but with limited buffer against unexpected financial stress.

---

2. Key Vital Signs:

Metric	2024 Value (£)	Interpretation
Current Assets	4,612	Small but growing; mostly likely cash or receivables, indicating some liquidity.
Current Liabilities	2,171	Short-term obligations are manageable relative to assets.
Net Current Assets	2,441	Positive working capital ("healthy cash flow buffer") showing ability to cover short-term debts.
Net Assets	2,441	Indicates the company's equity base and residual value after liabilities.
Shareholders’ Funds	2,441	Reflects owner’s retained equity, consistent with net assets.
Employee Count	1	Very small workforce consistent with micro-entity status.

Trend Observations:

• Net current assets improved from £475 in 2023 to £2,441 in 2024, indicating strengthening liquidity and operational resilience.
• Total net assets increased fivefold in the same period, suggesting either capital injection, retained earnings, or asset appreciation.
• Company remains a micro-entity with limited scale, typical for a start-up in IT service activities.

---

3. Diagnosis:

The financial "vital signs" suggest CORE COMPUTERS AND WEBSITES LIMITED is in a stable but early stage of financial health. The company shows no symptoms of distress such as negative net assets, excessive liabilities, or poor liquidity ratios. The positive net current assets indicate that the business comfortably meets its short-term obligations, a key indicator of operational "fitness."

However, the small absolute values highlight limited financial "muscle," meaning any sudden increase in liabilities or drop in revenues could stress the business. The company’s reliance on a single director/shareholder who controls 75-100% of shares also indicates concentrated control, which may impact strategic decisions and risk distribution.

---

4. Recommendations:

To strengthen financial wellness and prepare for future growth, the company should consider:

• Build Cash Reserves: Continue improving liquidity to create a buffer against unforeseen expenses or revenue fluctuations. Healthy cash flow is the lifeblood of any small business.
• Diversify Revenue Streams: Explore expanding client base or services within the IT sector to reduce dependence on limited income sources, enhancing financial stability.
• Financial Planning: Implement regular budgeting and forecasting to anticipate cash flow needs and avoid liquidity crunches. This is akin to routine health check-ups to catch potential issues early.
• Governance and Risk Management: Consider adding a second director or advisory board to share oversight and bring diverse expertise, reducing concentration risk.
• Monitor Working Capital: Keep a close watch on receivables and payables to sustain positive net current assets, ensuring smooth day-to-day operations.
• Prepare for Scaling: As the company grows, plan for transitioning from micro-entity accounts to more detailed financial reporting and possible audit requirements to support investor confidence and compliance.

---