Company Number: 13554154

Analysis Date: 2025-07-20 15:11 UTC

Financial Health Assessment for FEGA LIMITED

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1. Financial Health Score: B

Explanation:
FEGA LIMITED shows signs of improving financial health with increasing net assets and positive working capital. The company maintains a healthy liquidity position relative to its current liabilities, indicating good short-term financial stability. However, the presence of long-term creditors and the relatively small scale of net assets suggest some caution. Overall, the financial "vital signs" are good but there is room for strengthening the balance sheet and cash position further.

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2. Key Vital Signs:

Metric	2025 (£)	2024 (£)	Interpretation
Cash at Bank	8,934	4,645	Healthy increase in cash — good liquidity buffer.
Current Liabilities	4,109	3,520	Manageable short-term debts, not excessive.
Net Current Assets	4,825	1,125	Positive working capital shows ability to cover short-term debts comfortably.
Net Assets (Equity)	3,225	1,125	Growing shareholder equity signals retained profitability or capital injection.
Creditors >1 year (Long-term liabilities)	1,600	0	Introduction of long-term debt requires monitoring but can support growth if managed well.
Share Capital	1,000	1,000	Stable equity base.
Profit & Loss Reserves	2,225	125	Significant build-up of retained earnings, indicating profitable operations or capital retention.

Interpretation:
The company’s liquidity is robust with cash nearly doubling year-on-year. The net current assets have more than quadrupled, indicating a strong ability to meet short-term obligations—a "healthy pulse" in financial terms. The growth in shareholders' funds and profit reserves shows that the company is accumulating value, which is a positive "symptom" of financial wellness. The appearance of long-term liabilities introduces a "symptom" to watch but is not immediately concerning.

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3. Diagnosis:

FEGA LIMITED is in a stable and improving financial condition typical of a small, growing private education-related company. The company demonstrates solid liquidity and increasing net assets, which are analogous to a patient with good vital signs and improving strength after a period of recovery or startup phase.

The company’s cash flow appears "healthy," with cash reserves growing and working capital strongly positive, indicating operational stability and effective short-term financial management. The increase in profit and loss reserves suggests the company is either profitable or retaining earnings, strengthening its financial foundation.

The introduction of a £1,600 long-term creditor (likely a loan or similar financing) indicates the company is leveraging external capital, which is a normal step for growth but requires ongoing monitoring to avoid financial strain.

No indications of financial distress such as negative net assets, excessive current liabilities, or cash flow issues are present. The company has maintained compliance with filing deadlines and remains active, which are positive operational "signs."

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4. Recommendations:

• Monitor Long-Term Debt: Keep close watch on the long-term creditor balance and ensure repayment schedules are manageable to avoid liquidity stress in the future.
• Maintain and Grow Cash Buffer: Continue building cash reserves to provide a cushion for unexpected expenses or operational fluctuations—this is akin to maintaining a strong immune system.
• Profitability Focus: Given the positive retained earnings, focus on sustaining or improving profitability through operational efficiencies or revenue growth to strengthen shareholder value.
• Financial Planning: Develop cash flow forecasts and budgets to anticipate future funding needs and avoid surprises in working capital.
• Risk Management: Since the company operates in education, keep abreast of regulatory changes or market shifts that may impact revenue streams.
• Review Capital Structure: Consider if additional equity investment or refinancing of long-term debt could improve financial flexibility.

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