CUSTOMER FIT LIMITED

Executive Summary

Customer Fit Limited demonstrates a solid financial foundation with positive net assets and healthy working capital in its first year of operation. While no immediate financial distress signals are detected, careful management of receivables and cash flow will be critical to maintain stability and support growth. Overall, the company is financially healthy but must remain vigilant as it matures.

CUSTOMER FIT LIMITED - Analysis Report

Company Number: 15776963

Analysis Date: 2025-07-29 12:09 UTC

Financial Health Assessment for Customer Fit Limited
As of 31 March 2025

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1. Financial Health Score: B (Good)

Customer Fit Limited shows a solid start for a newly incorporated company. The balance sheet reflects a healthy net asset position with positive working capital and no audit exceptions, indicating sound financial discipline. The "B" grade acknowledges strong initial financial footing but recognizes the limited operating history and moderate current liabilities which require ongoing management vigilance.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	2,547	Investment in tangible assets (computer equipment) aligns with business activity (consultancy).
Current Assets	63,282	Healthy liquidity, primarily cash and receivables—good short-term resource availability.
Cash	32,665	Strong cash position supports operational flexibility and emergency buffer.
Debtors	30,617	Significant receivables suggest active sales/contract work; timely collection will be key.
Current Liabilities	41,424	Mainly taxation and social security—normal for a growing company but requires cash flow care.
Net Current Assets	21,858	Positive working capital indicates ability to cover short-term debts comfortably.
Total Assets Less Current Liabilities	24,405	Overall net assets show a positive equity base and no over-leverage.
Shareholders' Funds	24,405	Equity backed by accumulated profits reserves, reflecting retained earnings.

Additional Context:

• The company is classified as a small private limited company and has filed under the total exemption full accounts regime, suggesting compliance with statutory obligations.
• The business operates in management consultancy (SIC 70229), which typically involves low fixed asset intensity and high reliance on human capital and receivables.
• One director and one secretary, both related by address, indicating a closely held company structure with centralized control.

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3. Diagnosis: Financial Condition and Business Health

The financial "vital signs" reveal a generally healthy financial condition for Customer Fit Limited during its first accounting period (June 2024 - March 2025). The company has built positive net assets primarily through retained earnings (£24,305 profit and loss reserve) and maintains a comfortable liquidity buffer (£32,665 in cash).

The positive net current assets (£21,858) are a strong symptom of good short-term financial health, indicating the company can meet its immediate obligations without distress. The bulk of current liabilities being taxation and social security is typical for a company in its first year, reflecting accrued tax liabilities rather than operational debt.

However, some "symptoms of caution" include:

• Substantial debtors (£30,617) which must be collected efficiently to maintain cash flow health. If these become overdue, it could strain liquidity.
• The company's short operational history (less than one year) means future profitability and cash generation are yet unproven.
• Limited fixed asset base means the business model depends heavily on intangible assets such as expertise, which can be vulnerable to personnel changes.

Overall, the company shows no signs of financial distress but remains in the early stages of business development where careful cash flow management and debtor control will be crucial.

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4. Recommendations for Financial Wellness Improvement

1. Debtor Management:

   • Implement stringent credit control policies to ensure timely collection of outstanding invoices.
   • Regularly review debtor aging reports to identify potential bad debts early.

2. Cash Flow Monitoring:

   • Maintain a rolling cash flow forecast to anticipate tax payments and other liabilities.
   • Consider setting aside cash reserves to cover the sizeable tax and social security liabilities appearing annually.

3. Profitability Tracking:

   • As the company grows, focus on increasing turnover and controlling overhead costs to build retained profits.
   • Explore diversification of consultancy services to reduce risk.

4. Governance and Compliance:

   • Ensure all filings (accounts and confirmation statements) are submitted timely to avoid penalties and maintain good standing.
   • Consider formalizing governance structures as the company expands, including possible appointment of independent directors or advisors.

5. Risk Management:

   • Evaluate insurance needs and contractual protections to safeguard against client non-payment or legal claims.
   • Plan for succession or backup for key personnel to reduce operational risk.

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Medical Analogy Summary

Customer Fit Limited currently exhibits a robust pulse and healthy blood pressure in financial terms—strong cash flow, positive net assets, and manageable liabilities. The symptoms of financial distress are absent, but like any young patient, it requires monitoring and proactive care to ensure sustained wellness and avoid future complications such as cash flow squeezes or bad debts.

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