FAIR WIND SHIPPING, FORWARDING AND TRADING CO. LIMITED

Executive Summary

FAIR WIND SHIPPING, FORWARDING AND TRADING CO. LIMITED presents a financially stable position with growing net assets and positive working capital, reflecting a healthy balance sheet for a micro-entity. While operational scale appears limited and detailed profitability data is lacking, compliance is excellent and liquidity is well-managed. Enhancing financial transparency and equity strength will support sustained growth and resilience.

FAIR WIND SHIPPING, FORWARDING AND TRADING CO. LIMITED - Analysis Report

Company Number: 12717875

Analysis Date: 2025-07-29 13:34 UTC

Financial Health Assessment for FAIR WIND SHIPPING, FORWARDING AND TRADING CO. LIMITED

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1. Financial Health Score: B

Explanation:
This company exhibits a solid foundation for a micro-entity with consistent growth in net assets year over year, positive working capital, and no overdue filings. The financial "vital signs" show improving balance sheet strength and prudent management of liabilities. However, the absence of detailed profitability metrics, cash flow data, and reliance on minimal equity capital limit the grade from reaching "A". Overall, the financial health is good but with room for enhanced liquidity and operational transparency.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Assets	£8,550	Positive and growing net assets indicate strengthening equity and business value.
Net Current Assets (Working Capital)	£8,550	Sufficient short-term assets exceed liabilities, signifying healthy liquidity to cover immediate debts.
Current Liabilities	-£2,839	Low level of short-term obligations reduces liquidity risk ("symptoms of distress" are absent here).
Share Capital	£1,000	Minimal initial capital, typical for micro-entities but highlights limited equity buffer.
Filing Status	Up to date	Compliance with filing deadlines supports regulatory health and credibility.
Employee Count	0 (average)	No employees reported; possibly reliant on director or outsourcing, which affects operational scale.

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3. Diagnosis: Financial Condition Assessment

• Balance Sheet Strength: The company shows a steady increase in net assets from £1,000 in 2020 to £8,550 in 2024, indicating capital retention or asset accumulation—a positive sign akin to a patient gaining strength.
• Liquidity: The net current assets being positive and increasing suggests the company maintains a "healthy cash flow" or at least sufficient liquid resources to meet short-term obligations. Negative current liabilities values here represent low or manageable payables.
• Profitability & Cash Flow: As a micro-entity filing under simplified accounts, detailed profit and loss or cash flow statements are not provided. This lack creates a blind spot similar to missing vital signs in a medical check, making it difficult to fully assess operational efficiency or profitability.
• Growth Trajectory: The upward trend in net assets and working capital indicates a stable or growing business, with no immediate signs of financial distress or insolvency.
• Operational Scale: The absence of employees may indicate a very lean operation or reliance on the director’s personal management and outsourcing. This could impact the sustainability of growth and operational capacity.
• Compliance & Management: The director is current with filings, showing good governance "immune system" function, reducing risks related to penalties or regulatory scrutiny.

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4. Recommendations to Improve Financial Wellness

• Enhance Profitability Transparency: Consider preparing fuller accounts including profit & loss and cash flow statements to better diagnose operational health, enabling informed decision-making.
• Build Equity Buffer: Explore increasing share capital or retained earnings to provide a stronger cushion against unexpected downturns, akin to boosting the body's immunity reserves.
• Monitor Working Capital Dynamics: Keep a close watch on current assets versus liabilities to maintain liquidity, ensuring "healthy blood flow" through the business.
• Expand Operational Capacity: Assess whether bringing on employees or strategic partnerships could improve operational scalability and reduce risks from reliance on a single director.
• Financial Planning & Forecasting: Develop financial projections to anticipate future cash needs and growth opportunities, improving the "prognosis" of sustainable business health.
• Regular Financial Review: Schedule periodic financial health check-ups to detect early warning signs of distress and adjust strategy proactively.

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