EXALT SCAFFOLDING LIMITED

Executive Summary

Exalt Scaffolding Limited is a newly established business showing early signs of stable financial health with positive working capital and equity. While its operational scale and financial history are limited, there are no immediate risks or distress symptoms. The company should focus on growing its revenue base, managing working capital prudently, and maintaining compliance to ensure a healthy financial future.

EXALT SCAFFOLDING LIMITED - Analysis Report

Company Number: 15221602

Analysis Date: 2025-07-29 20:07 UTC

Financial Health Assessment: EXALT SCAFFOLDING LIMITED

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1. Financial Health Score: C

Explanation:
Exalt Scaffolding Limited is a very young private limited company, incorporated in October 2023, with its first accounting period ending October 2024. Given the extremely limited financial data, the company is currently showing modest net current assets (£143) and positive shareholders' funds (£143). However, the scale of operations is minimal, with no employees and a low asset base, reflecting a startup or early formation stage. The financial health score of "C" reflects a stable but embryonic financial condition with limited operational history, indicating a cautious outlook.

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2. Key Vital Signs

Vital Sign	Value	Interpretation
Net Current Assets	£143	Positive but very small working capital; slight buffer to cover short-term liabilities.
Current Liabilities	£1,138	Low level of short-term obligations; manageable given current assets.
Debtors	£1,281	Small amount owed to the company; implies some initial business activity.
Shareholders’ Funds	£143	Equity slightly above zero; company is solvent but with narrow equity base.
Employees	0	No staff yet, indicating early stage or possibly subcontracted work.
Account Category	Total Exemption Full	Indicates company qualifies for simplified filing, typical for small companies.

Interpretation:

• The company’s "vital signs" suggest a stable but very nascent financial condition.
• Positive net current assets ("healthy cash flow" equivalent) indicate the company can meet immediate debts, albeit with a very thin margin.
• Small equity base ("shareholders’ funds") points to limited capitalization but no immediate distress.
• No employees mean limited operational scale and potentially low overheads.

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3. Diagnosis

What the Numbers Reveal:

• Being a startup company with only one reporting period, Exalt Scaffolding Limited exhibits "symptoms of early development" rather than financial distress.
• The company has managed to establish a modest balance sheet with positive working capital, which is a "good pulse" for a new business.
• The absence of an income statement (not filed due to small company exemption) limits the visibility on profitability or cash flow from operations.
• The presence of some debt to group undertakings (£674) as part of current liabilities suggests intra-group financing, common in startups, which should be monitored for repayment capacity.
• The director’s report and notes indicate compliance with statutory requirements and a small company regime, reflecting conservative financial management.
• No employees yet may indicate operations are in setup or subcontracted phase, which is typical but represents a risk if the company scales rapidly without established cash flow.

Overall Health:
The company is currently solvent and stable but remains in the formative stage with limited financial history. It shows no immediate signs of financial distress but also lacks operational scale or profitability evidence. This condition is analogous to a patient who has passed initial surgery successfully but is still in the recovery phase, requiring ongoing monitoring.

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4. Recommendations

1. Build Operational History:
   Focus on generating consistent revenue streams and profitability to strengthen the balance sheet and build reserves. This will improve the company's "financial stamina."

2. Monitor Working Capital Carefully:
   Maintain or increase net current assets to ensure the company can meet short-term obligations without stress. Consider managing debtors and creditors efficiently to maintain liquidity.

3. Plan for Staffing and Growth:
   If growth is anticipated, plan for recruitment or subcontractor management to avoid operational "strain" that could impact cash flow.

4. Maintain Compliance and Transparency:
   Continue to file accounts and confirmation statements timely to avoid regulatory "infection" (penalties or legal issues).

5. Review Group Financing Arrangements:
   Monitor the intra-group loans to ensure they remain sustainable and do not impose undue financial burden.

6. Develop Financial Reporting:
   As the company matures, consider preparing more detailed financial statements (including P&L) to allow better diagnosis of profitability and cash flow health.

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