CREATE SIGNS SW LTD

Executive Summary

CREATE SIGNS SW LTD, a newly formed micro-entity in specialised design, demonstrates healthy financial fundamentals with positive net assets and working capital. While early-stage scale limits detailed profitability insight, the company shows no distress symptoms, indicating good initial financial wellness. Continued focus on cash flow, profitability, and building reserves will support sustainable growth and financial stability.

CREATE SIGNS SW LTD - Analysis Report

Company Number: 14683236

Analysis Date: 2025-07-29 12:26 UTC

Financial Health Assessment: CREATE SIGNS SW LTD

---

1. Financial Health Score: B

Explanation:
CREATE SIGNS SW LTD is a micro-entity with a solid foundation for a startup company in its first full year of trading (incorporated in February 2023). The company shows positive net assets and a modest but healthy working capital position. While early-stage companies typically face initial cash flow and investment challenges, CREATE SIGNS SW LTD has demonstrated prudent financial management with no signs of distress. The "B" grade reflects a healthy start with room for growth and improvement in liquidity and scale.

---

2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£15,104	Indicates investment in long-term operational assets; appropriate for a design business.
Current Assets	£52,134	Short-term resources available to meet immediate obligations.
Current Liabilities	£43,571	Short-term debts due within one year; manageable but warrants monitoring.
Net Current Assets (Working Capital)	£8,563	Positive working capital, indicating ability to cover short-term liabilities, though margin is modest.
Total Assets Less Current Liabilities	£23,667	Indicates overall assets net of short-term liabilities; a healthy buffer.
Net Assets / Shareholders’ Funds	£22,407	Equity held by owners; positive and stable, showing retained value.
Average Employees	3	Small, focused team consistent with micro-entity size.

Interpretation:

• The positive net current assets ("healthy cash flow") suggest the company can meet its short-term obligations without strain, a key sign of operational stability.
• The fixed assets base is appropriate for a design-focused business, likely including equipment and software licenses.
• The shareholders’ funds reflect retained value and initial capital injection, essential for ongoing operations and growth.
• No audit requirement and use of micro-entity accounting standards are consistent with size but limit some detail on profitability.

---

3. Diagnosis: Financial Condition and Business Health

CREATE SIGNS SW LTD appears to be in good financial health for a newly incorporated micro company. The financial "vitals" show no symptoms of distress such as negative net assets, excessive liabilities, or cash flow constraints. The modest but positive working capital is reassuring, indicating the company can cover its immediate debts and continue operations smoothly.

However, as a newly formed entity, the company has limited historical financial data and scale, which naturally poses challenges in forecasting and risk assessment. The directors’ dual control and shared significant ownership indicate aligned leadership, which can be a stabilizing factor.

The absence of a profit and loss statement limits insight into operational profitability and margin health. This is common for micro-entities but means diagnosis focuses primarily on balance sheet strength and liquidity.

---

4. Recommendations: Actions to Enhance Financial Wellness

• Enhance Cash Flow Monitoring:
  Maintain rigorous cash flow tracking to ensure working capital remains positive, especially as the company grows or takes on larger projects.

• Build Reserves:
  Aim to increase retained earnings and reserves to create a buffer for unexpected expenses or investment opportunities.

• Profitability Focus:
  Even though P&L details are not filed, internally track revenue, cost of sales, and overheads closely to ensure profitable operations and identify cost efficiencies.

• Plan for Growth:
  Consider scaling up employee base and assets prudently while maintaining liquidity, to avoid overextension.

• Stakeholder Communication:
  Maintain transparent communication with shareholders and potential lenders about financial health to build trust and facilitate future funding if needed.

• Explore Professional Advice:
  Engage with accountants or financial advisors periodically to ensure compliance with evolving regulations and maximize tax efficiency.

---

Medical Analogy Summary:

CREATE SIGNS SW LTD’s financial "vital signs"—working capital, net assets, and liquidity—indicate a company in good health with no immediate symptoms of financial distress. Like a patient recovering well after initial treatment, steady monitoring and careful management will support continued growth and resilience.

---