CORN SERVICES LTD

Executive Summary

Corn Services Ltd is a financially solvent micro-entity with positive net assets and working capital, reflecting stable short-term liquidity and solvency. However, minimal fixed assets and no employees indicate limited operational scale. The company should focus on enhancing operational capacity and detailed profitability tracking to support sustainable growth.

CORN SERVICES LTD - Analysis Report

Company Number: 13283825

Analysis Date: 2025-07-29 14:27 UTC

Financial Health Assessment for Corn Services Ltd (as of 29 February 2024)

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1. Financial Health Score: B

Explanation:
Corn Services Ltd shows a generally healthy financial position for a micro-entity in its early years. The company has positive net assets, stable working capital, and no signs of immediate liquidity distress, earning it a solid B grade. However, limited scale, minimal fixed assets, and absence of employees highlight growth and operational capacity constraints, preventing an A grade.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£2,153	Very low fixed asset base, typical for a micro business, indicating limited investment in property or equipment.
Current Assets	£5,970	Modest current assets, including cash and receivables, indicating reasonable short-term resources.
Current Liabilities	£4,656	Current liabilities are significant but comfortably covered by current assets.
Net Current Assets	£1,314	Positive working capital ("healthy cash flow cushion") showing ability to meet short-term obligations.
Net Assets (Equity)	£3,467	Positive equity base, indicating the company has more assets than liabilities, a fundamental sign of solvency.
Share Capital	£2	Nominal share capital, typical for micro companies; does not reflect company value.
Employee Count	0 (average)	No employees reported in 2024, which could limit operational capacity or indicate outsourcing.
Profit & Loss Data	Not detailed	No profit/loss data provided; unable to assess profitability or operational efficiency.

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3. Diagnosis

Corn Services Ltd presents as a financially solvent micro-entity with a stable net asset position and positive working capital. The "vital signs" suggest a business maintaining a "healthy cash flow cushion," able to cover its immediate debts and obligations. The low fixed asset base and absence of employees imply the company is either asset-light or perhaps reliant on subcontractors, which can be common in small manufacturing or bakery operations.

The company’s financial statements are unaudited but filed on time, which reduces risk of compliance issues but limits external assurance. The positive trend in net assets from prior years suggests gradual capital build-up or retained earnings, though detailed profit and loss figures are unavailable to assess true profitability or cash generation from operations.

Control is shared between two persons with significant influence, indicating a potentially stable governance structure. The company is active, with no signs of distress such as overdue filings or negative net assets.

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4. Recommendations

• Increase Operational Capacity: Consider hiring at least a minimal number of employees or formalizing subcontracting agreements to stabilize production and growth capacity.
• Profitability Analysis: Track and report profit and loss metrics to better understand margins and operational efficiency; this will support informed decision-making and future financing.
• Asset Investment: Evaluate whether investing in fixed assets (e.g., baking equipment) could improve operational efficiency or product quality.
• Cash Flow Management: Continue monitoring working capital closely to maintain liquidity given the tight margin between current assets and liabilities.
• Growth Strategy: Explore market opportunities to scale operations beyond micro status, which would provide access to larger financing options and support business sustainability.
• Governance & Reporting: Maintain timely filing compliance. Consider voluntary audit or external financial reviews to increase transparency and stakeholder confidence as the company grows.

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