Company Number: 12785090

Analysis Date: 2025-07-20 15:27 UTC

Financial Health Assessment for CUBEFIX LIMITED (as of 31 August 2024)

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1. Financial Health Score: B

Explanation:
CUBEFIX LIMITED demonstrates solid financial stability with consistent growth in net assets and strong working capital. The company's balance sheet reflects a healthy cushion of current assets over current liabilities, indicating good short-term liquidity. However, as a micro-entity with minimal fixed assets and limited share capital, there is some vulnerability in scale and capital structure that prevents an "A" grade.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£7,885	Modest long-term asset base typical for a service-based micro company; stable over years.
Current Assets	£133,135	Healthy cash, receivables, or short-term resources available to meet immediate obligations.
Current Liabilities	£52,964	Short-term debts and payables; relatively moderate compared to current assets.
Net Current Assets (Working Capital)	£80,171	Strong positive working capital showing good liquidity and operational flexibility.
Net Assets (Shareholders’ Funds)	£88,056	Increasing net assets year-on-year indicate retained profits and strengthening equity base.
Share Capital	£1.00	Minimal paid-up capital; reliance on retained earnings for growth rather than external investment.

• Liquidity ("Healthy cash flow"): The company’s liquidity is strong as current assets exceed current liabilities by a significant margin, indicating no immediate cash flow distress.
• Solvency: Positive and growing net assets indicate the company is solvent with a buffer to absorb financial shocks.
• Growth Trend: The company’s net assets nearly tripled from £31,536 in 2021 to £88,056 in 2024, showing steady earnings retention or capital accumulation.

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3. Diagnosis

The financial "vital signs" of CUBEFIX LIMITED suggest a robust micro-business with a sound financial structure. The company is maintaining a stable and growing equity base, which signals profitability and prudent financial management. The working capital position is strong, indicating no liquidity constraints and the ability to fund day-to-day operations without difficulty.

The minimal share capital combined with low fixed assets is typical for a service-oriented support business, relying more on human capital than physical assets. The consistency in current liabilities relative to current assets points to controlled operational overhead and payable management.

No signs of financial distress ("symptoms of distress") such as negative net assets, excessive current liabilities, or liquidity crunch are evident. The company’s balance sheet “pulse” is steady and improving, reflecting good financial health.

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4. Recommendations for Financial Wellness Improvement

1. Consider Capital Structure Optimization:
   Although current financial health is good, raising additional share capital or external funding could provide a stronger equity base, enabling scaling or investment opportunities.

2. Enhance Asset Utilization:
   Explore opportunities to invest in fixed assets or technology that could improve operational efficiency and support business growth, provided this aligns with strategic goals.

3. Cash Flow Monitoring:
   Maintain rigorous monitoring of cash inflows and outflows to sustain liquidity, especially if business activity scales or external economic conditions tighten.

4. Build Financial Reserves:
   Continue to retain earnings and build reserves to buffer against unforeseen downturns or investment needs.

5. Strategic Planning:
   Use the strong financial foundation as a platform to develop longer-term business plans, potentially exploring diversification within the company's service areas (business support, risk evaluation).

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