FEBBY'S TUTORIALS LTD

Executive Summary

FEBBY'S TUTORIALS LTD, a newly formed micro-entity, exhibits positive net assets but faces short-term liquidity challenges as evidenced by negative working capital. The company is solvent but should focus on improving cash flow and building current assets to ensure healthy operational funding. With prudent financial management, the company can stabilize its financial health and support future growth.

FEBBY'S TUTORIALS LTD - Analysis Report

Company Number: 15163266

Analysis Date: 2025-07-20 18:24 UTC

Financial Health Assessment for FEBBY'S TUTORIALS LTD

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1. Financial Health Score: C

Explanation:
FEBBY'S TUTORIALS LTD shows a modest financial position typical of a newly incorporated micro-entity. The company has positive net assets, which is a healthy sign, but its working capital (current assets minus current liabilities) is negative, indicating short-term liquidity pressure. The overall score reflects the early stage of the business with some symptoms of cash flow stress that need monitoring.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	15,416	Company has invested in long-term assets, indicating capital formation. Healthy sign.
Current Assets	821	Very low short-term resources (cash, receivables, stock). Potential liquidity concern.
Current Liabilities	6,200	Short-term debts due within a year. Higher than current assets, indicating liquidity strain.
Net Current Assets (Working Capital)	-5,379	Negative working capital, a symptom of potential cash flow difficulties or tight liquidity.
Total Assets less Current Liabilities	10,037	Positive, showing asset backing beyond short-term debts.
Net Assets / Shareholders' Funds	10,037	Positive equity, indicating the company is solvent and has a buffer against losses.
Number of Employees	1	Micro entity with minimal staffing, likely low operating overheads.

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3. Diagnosis

FEBBY'S TUTORIALS LTD is in its infancy, incorporated in late 2023, and classified as a micro-entity. The financial "vital signs" reveal a company with a small asset base, primarily fixed assets, and limited current assets. The key symptom of concern is the negative working capital of £-5,379, which suggests a mismatch between short-term obligations and liquid resources.

This implies that while the company has a positive net asset position (equity), it may face challenges meeting immediate creditor demands without additional cash inflows or financing. Since the business is just starting, this could be due to initial setup costs, timing differences in cash flows, or delayed client payments.

The sole current director and 75-100% shareholder, Mr. Febin Varghese, holds full control, which simplifies decision-making but also concentrates risk.

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4. Recommendations

To improve the financial wellness and address symptoms of liquidity stress, consider the following:

• Enhance Cash Flow Management:
  Monitor cash inflows and outflows closely. Accelerate receivables collection and negotiate longer payment terms with suppliers where possible to improve working capital.

• Build Up Current Assets:
  Increase cash reserves or short-term assets through operational cash generation or external financing to cover short-term liabilities comfortably.

• Cost Control:
  Maintain tight control over operating expenses, especially as a micro business, to avoid unnecessary cash drains.

• Consider Short-Term Financing Options:
  If cash flow pressures continue, explore overdrafts or short-term loans to bridge liquidity gaps without endangering solvency.

• Regular Financial Monitoring:
  Conduct monthly reviews of financial metrics and cash flow forecasts to detect and address emerging issues early.

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