Company Number: 13598434

Analysis Date: 2025-07-20 14:30 UTC

Financial Health Assessment for Creative Space Bristol Ltd

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1. Financial Health Score: B

Explanation:
Creative Space Bristol Ltd demonstrates a generally stable and improving financial position over the recent years, with positive net current assets and net assets, though on a modest scale consistent with a micro-entity. The company shows signs of healthy working capital management and shareholder equity growth, but limited scale and low absolute figures suggest cautious optimism rather than robust financial strength.

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2. Key Vital Signs:

Metric	2025 (£)	Interpretation
Current Assets	3,698	Modest liquid resources available, increased from prior years, indicating improving cash or receivables.
Current Liabilities	2,262	Debts due within one year have increased but remain manageable relative to current assets.
Net Current Assets	1,436	Positive working capital, indicating the company can cover short-term obligations comfortably.
Net Assets (Shareholder Funds)	1,436	Equity has grown significantly from £548 in 2024, showing retained earnings or capital injections.
Average Employees	1	Very small headcount, consistent with micro-entity status and low overheads.
Turnover (latest data N/A)	N/A	No recent turnover figures provided from accounts, limiting revenue trend analysis.

Interpretation:

• The company’s working capital ("net current assets") is healthy, meaning it has enough short-term assets to cover its short-term liabilities. This is a vital sign of operational liquidity.
• Net assets have almost tripled in one year, a sign of improved retained earnings or capital investment, reflecting a strengthening balance sheet.
• The increase in current liabilities is not alarming given the increase in current assets, but warrants monitoring to avoid liquidity stress.
• The company remains small, with a single employee, which suggests low fixed overhead costs and flexibility.

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3. Diagnosis:

Creative Space Bristol Ltd exhibits a financially stable condition with positive working capital and growing equity base, which are indicators of a business that is not under immediate financial distress. The company is young (incorporated in 2021) and classified as a micro-entity, so the absolute figures are small but growing. The increase in net assets and net current assets suggests the company is building a buffer against future uncertainties.

Symptoms of potential caution:

• The rise in current liabilities from previous years could indicate increased short-term obligations, possibly trade payables or accrued expenses. While manageable now, if unchecked, it could strain liquidity.
• Absence of recent turnover figures in the available data limits insight into revenue growth or profitability trends, making it harder to assess operational efficiency fully.
• Director changes in 2024 may imply shifts in management strategy or ownership that should be monitored for impact on company direction.

Overall, the company’s financial vital signs show no immediate signs of distress such as negative working capital or declining equity, but close monitoring of liabilities and revenue trends is recommended.

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4. Recommendations:

1. Maintain and improve liquidity management:
   Continue to monitor current liabilities closely, ensuring that payments terms and cash inflows are balanced to avoid liquidity crunches.

2. Focus on revenue and profitability tracking:
   Ensure detailed internal financial tracking of turnover and profits to supplement statutory filings, enabling early detection of operational issues.

3. Build financial reserves:
   As the company grows, aim to increase net assets further by retaining earnings or injecting additional capital to strengthen the balance sheet against unforeseen events.

4. Review credit control processes:
   Since current assets likely include receivables, ensure efficient collection to maintain healthy cash flow.

5. Strategic planning around growth:
   With only one employee, consider whether incremental investment in human resources or assets is needed to support growth ambitions sustainably.

6. Management continuity and governance:
   Given recent director changes, ensure clear governance and strategic vision alignment to maintain business stability.

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