EXCELO LIMITED

Executive Summary

EXCELO LIMITED is currently a micro-entity with minimal financial activity, effectively dormant despite being registered as active. Its financial condition is stable but extremely fragile, with negligible assets and no operational revenue. To improve financial health, the company must engage in active trading, enhance working capital, and adopt sound financial management practices.

EXCELO LIMITED - Analysis Report

Company Number: SC667574

Analysis Date: 2025-07-20 15:30 UTC

Financial Health Assessment for EXCELO LIMITED as of 31 July 2024

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1. Financial Health Score: D

Explanation:
The company’s financial position reflects extremely minimal activity and scale, with net assets and shareholders’ funds consistently at just £1 over five years. While the company is solvent with positive net current assets, the lack of meaningful financial substance and operational activity suggests a fragile financial state, bordering on dormancy despite being active. This warrants a low health score indicating vulnerability and lack of operational vitality.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Current Assets	£26,855	Reasonable short-term assets, possibly cash or receivables.
Current Liabilities	£26,854	Almost equal to assets, indicating very tight liquidity.
Net Current Assets	£1	Minimal working capital; cash flow is extremely constrained.
Net Assets / Shareholders Funds	£1	Barely any equity; company is essentially break-even financially.
Account Category	Micro	Minimal filing requirements; very small scale.
Average Employees	1	Sole operator; limited operational capacity.
Industry SIC Code	Dormant Company	Indicates no active trading or business operations reported.

Interpretation:

• The net current assets of £1 are a "heartbeat" barely registering, indicating the company holds just enough assets to cover liabilities with almost no buffer.
• The balance sheet is extremely thin, with minimal equity and virtually no retained earnings or reserves, highlighting a lack of financial depth or growth.
• The micro-entity status combined with SIC classification as "Dormant" suggests the company has limited or no trading activity in the reporting period, resembling a patient in stasis rather than active operation.
• The stable but negligible equity base over multiple years could imply the company is either newly formed and inactive or maintained minimally to preserve registration without meaningful business.

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3. Diagnosis

The financial "symptoms" suggest that EXCELO LIMITED is essentially in a financial coma: It is active on paper but functionally dormant. The cash flow is effectively stagnant, with no evidence of profit generation, investment, or growth. The company’s balance sheet is balanced but only at a token level, showing no signs of financial vitality or distress in the form of liabilities exceeding assets, but also no evidence of healthy operations.

The single employee/director indicates a one-person operation with likely no commercial transactions or revenue, consistent with the SIC code for a dormant company. The company’s financial "vital signs" are weak but stable, suggesting no immediate risk of insolvency but also no foundation for expansion or financial health improvement without active business development.

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4. Recommendations

To improve the financial wellness of EXCELO LIMITED, consider the following steps:

• Activate Business Operations: If the company intends to trade, initiate business activities to generate revenue and move beyond dormant status. Without income or operational engagement, financial health cannot improve.
• Increase Working Capital: Aim to build net current assets beyond token levels by securing funding or generating sales, creating a cushion to manage liabilities and invest in growth.
• Financial Planning and Budgeting: Establish a clear budget and cash flow forecast to monitor inflows and outflows, ensuring the company can sustain operational expenses and avoid financial distress.
• Explore Funding Options: Consider small business loans, grants, or equity investments to infuse capital, especially if the business model requires upfront investment.
• Review Company Status: If the company does not intend to trade, consider formal dormancy or voluntary strike-off to reduce filing burdens and costs.
• Maintain Compliance: Continue to file accounts and confirmation statements timely to avoid penalties, preserving the company’s good legal standing.

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