FEED CODE LTD

Executive Summary

Feed Code Ltd is a micro-entity at an early development stage with modest financial resources and minimal operational activity. Its current financial position is stable but limited, reflecting initial funding rather than active business operations. To enhance financial health, the company should focus on building cash reserves, maintaining positive working capital, and planning for growth investments while continuing disciplined compliance.

FEED CODE LTD - Analysis Report

Company Number: 15186497

Analysis Date: 2025-07-29 16:04 UTC

Financial Health Assessment of Feed Code Ltd

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1. Financial Health Score: D

Explanation:
Feed Code Ltd is a newly established micro-entity with minimal financial activity so far. Its financial position is stable but very limited in scale, reflecting early-stage status rather than operational maturity. The score reflects a nascent business with low financial complexity and minimal working capital buffer.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	1,281	Very low cash and short-term resources, typical of a startup or micro business.
Current Liabilities	684	Small liabilities due within one year; manageable but indicates some short-term obligations.
Net Current Assets	597	Positive working capital indicates the company can cover immediate debts but with a narrow margin.
Net Assets (Shareholder Equity)	597	Small equity base; company has limited resources to absorb losses or invest in growth.
Average Number of Employees	0	No employees, suggesting early development phase, reliant on director or contractor activity.
Filing Status	Up-to-date	Compliance with filing deadlines is a positive governance sign and reduces regulatory risk.

Industry Context:
The company operates in "Artistic creation" and "Business and domestic software development," both sectors that can scale but also require upfront investment and cash flow management.

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3. Diagnosis

Feed Code Ltd currently exhibits "symptoms" typical of an early-stage startup or micro-business:

• Healthy cash flow in embryonic stage: The company holds more current assets than liabilities, indicating it can meet short-term obligations without distress.
• Limited operational history: With no employees and minimal financial transactions, the business is in an incubation or development phase. The balance sheet is essentially a snapshot of initial funding or owner investment.
• Low resilience to shocks: The very small equity base and net assets mean the company has limited ability to absorb unexpected costs or downturns.
• Governance and compliance: The director has maintained timely filings, showing good management discipline, which is a positive sign amid the early-stage risks.

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4. Recommendations

To improve financial wellness and move toward a healthier financial condition, Feed Code Ltd should consider the following actions:

• Build cash reserves: Aim to increase current assets by generating revenue or securing additional funding to create a stronger buffer against short-term liabilities.
• Monitor working capital closely: Maintain positive net current assets as a vital sign of liquidity, avoiding over-extension.
• Plan for growth investment: As a software and artistic creation company, investment in development or marketing may be needed to transition from startup mode to revenue-generating operations.
• Consider hiring or outsourcing carefully: Since there are no employees, the company relies heavily on the director or contractors; balancing cost and operational needs is crucial.
• Maintain compliance rigor: Continue timely filings and sound governance to avoid penalties and build credibility with partners, investors, and customers.
• Regular financial reviews: Establish monthly or quarterly financial check-ups to detect early "symptoms" of distress such as cash shortages or rising liabilities.

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