CPA MANAGEMENT LIMITED

Executive Summary

CPA MANAGEMENT LIMITED is a very young micro-entity with minimal financial resources and tight liquidity, reflecting an early-stage company with fragile but stable financial health. While current financial indicators show survival-level stability, the company must focus on building cash reserves, increasing equity, and expanding operations to strengthen its financial foundation and support future growth. Compliance and governance practices are sound, providing a good platform for development.

CPA MANAGEMENT LIMITED - Analysis Report

Company Number: 14314666

Analysis Date: 2025-07-20 11:56 UTC

Financial Health Assessment Report for CPA MANAGEMENT LIMITED

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1. Financial Health Score: C

Explanation:
CPA MANAGEMENT LIMITED is a very young micro-entity with minimal financial data available. The company shows a positive but very modest net asset base (£35) and net current assets (£35) as of September 2024, indicating a fragile but stable financial position. The score "C" reflects a business in its infancy with basic financial health, yet requiring close monitoring and action to build resilience and growth.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Current Assets	£1,115	Cash or equivalents and short-term receivables; very low level.
Current Liabilities	£1,080	Short-term debts due within a year; nearly matching current assets.
Net Current Assets (Working Capital)	£35	Positive but minimal working capital, indicating very tight liquidity.
Shareholders’ Funds (Net Assets)	£35	Equity buffer is extremely thin; company has just enough equity to cover liabilities.
Employee Count	0	No employees other than directors; very lean operation.
Audit Status	Exempt (Micro-entity)	Simplified reporting; less financial detail available.

Interpretation:

• The "vital signs" reveal a company with very limited financial resources and minimal liquidity margin.
• The working capital (net current assets) is positive but just above zero, a "symptom" of tight cash flow and limited buffer to absorb financial shocks.
• The tiny shareholders’ funds reflect a startup phase with little retained earnings or capital accumulation.
• The absence of employees indicates a low cost base but potentially limited operational capacity.

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3. Diagnosis

CPA MANAGEMENT LIMITED presents as a nascent business still in the early establishment phase, reflected by micro-entity reporting and minimal financial scale. The balance sheet shows "vital signs" of survival but highlights symptoms of financial fragility:

• Liquidity Risk: Current assets only marginally exceed current liabilities, indicating that the company’s "cash flow pulse" is weak. Any unexpected cash outflow or delay in receivables could cause distress.
• Capitalisation: The very low equity base suggests limited financial cushion, which may affect the company’s ability to raise finance or invest in growth.
• Operational Scale: With no employees and minimal assets, the company is likely reliant on directors for operational functions and may have limited revenue generation capacity at present.
• Compliance: The company is compliant with filing deadlines and statutory requirements, showing good governance "vital signs."

Overall, CPA MANAGEMENT LIMITED’s financial condition is stable but vulnerable—akin to a patient with a low but steady heartbeat requiring careful monitoring and supportive care.

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4. Recommendations

To improve financial wellness and strengthen the company’s prospects, the following actions are advised:

1. Build Cash Reserves:
   Aim to increase current assets, particularly cash balances, to create a healthier liquidity buffer. This could involve accelerating receivables collection or securing short-term financing facilities.

2. Increase Equity Capital:
   Consider additional share capital injections or retained earnings accumulation to provide a stronger equity foundation and improve resilience against unexpected costs.

3. Monitor Working Capital Closely:
   Maintain strict control on payables and receivables management to prevent liquidity crunches. Even small delays in payments could threaten the company’s ability to meet obligations.

4. Expand Operational Capacity:
   Evaluate the need to recruit staff or outsource key functions to support business development and revenue growth. The current zero-employee status limits operational scalability.

5. Plan Strategic Growth:
   Develop a clear business plan to increase turnover and profitability, leveraging the company’s expertise in real estate management. Growth will improve financial metrics and overall health.

6. Maintain Compliance:
   Continue timely filing of accounts and confirmation statements to avoid penalties and ensure good standing with Companies House.

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