FERNHILL HOMES LTD

Executive Summary

Fernhill Homes Ltd shows a solid financial foundation with positive working capital and net assets, reflecting healthy liquidity and equity for a newly formed micro-entity. Although operational performance data is unavailable, the company is free from immediate financial distress symptoms. Continued monitoring and prudent cash flow management are recommended to support sustainable growth and financial wellness.

FERNHILL HOMES LTD - Analysis Report

Company Number: 15200277

Analysis Date: 2025-07-29 20:19 UTC

Financial Health Assessment for Fernhill Homes Ltd (as of 31 October 2024)

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1. Financial Health Score: B-

Explanation:
Fernhill Homes Ltd shows generally stable financial "vital signs" for a micro-entity in its first financial year. The company has positive net current assets and net assets, indicating a solid liquidity position and positive equity. However, limited scale, absence of profitability data, and the very early life stage of the company (incorporated late 2023) constrain the rating from being stronger. The lack of employees and profit & loss details also mean some symptoms remain unexamined.

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2. Key Vital Signs

• Current Assets: £23,176
  Indicates availability of short-term resources such as cash and receivables.

• Current Liabilities: £10,622
  Short-term obligations due within one year.

• Net Current Assets (Working Capital): £12,554
  Positive working capital suggests the company can cover its immediate debts comfortably. This is a healthy cash flow symptom.

• Net Assets (Shareholders’ Funds): £11,414
  Represents the residual value of the company after liabilities. This shows initial capital investment and positive equity.

• Account Category: Micro-entity
  Subject to simplified reporting and small scale, limiting the depth of financial insights.

• Employees: 0 (including directors)
  A symptom of a very early-stage or lean operation, possibly reliant on director management or outsourced services.

• Profit & Loss Information: Not filed (exempt for micro-entities)
  Limits ability to assess operational performance or profitability symptoms.

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3. Diagnosis: Financial Condition and Business Health

Fernhill Homes Ltd is in the "early recovery room" phase typical of newly formed companies. The balance sheet shows healthy liquidity with net current assets more than covering short-term liabilities, indicating no immediate distress symptoms like cash crunch or over-leverage. The positive net assets and shareholders’ funds reflect a solid foundation of equity capital.

However, the absence of profit and loss figures means we cannot fully assess operational health, such as whether revenue generation or cost management is effective. The zero employees suggest the business is either not yet active in operations or is very lean, possibly dependent on the director or third parties.

Ownership and control lie strongly with Cardrona Group Limited and director Yasmeen Wong, both holding 75-100% shares and voting rights, indicating clear governance but potential concentration risk.

Overall, the company shows "healthy vital signs" for a micro-entity start-up with no overt symptoms of financial distress but remains at an early stage where ongoing monitoring is essential.

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4. Recommendations to Improve Financial Wellness

• Develop a Cash Flow Forecast:
  Even with positive working capital, planning cash inflows/outflows will help anticipate liquidity needs and avoid future distress symptoms.

• Track Operational Performance:
  Consider preparing internal profit and loss reports to monitor revenue and expenses, helping detect early symptoms of operational inefficiency.

• Build a Reserve for Contingencies:
  Retain some earnings or capital to buffer unexpected liabilities or downturns, enhancing financial resilience.

• Consider Strategic Investment in Staff or Outsourcing:
  With zero employees, evaluate whether operational scale or efficiency can be improved by hiring or outsourcing key functions.

• Maintain Clear Governance and Transparency:
  Given single-party control, ensure robust compliance and good governance to support stakeholder confidence and sustainable growth.

• Plan for Next Filing and Compliance:
  Timely accounts and confirmation statements help avoid penalties and maintain the company’s good standing.

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Medical Analogy Summary

Fernhill Homes Ltd currently exhibits stable "vital signs" with healthy liquidity and equity, akin to a patient in good initial health post-admission (company formation). However, the lack of operational data is a symptom gap that requires ongoing diagnostic monitoring. With prudent financial management and strategic growth, the prognosis is cautiously optimistic, but vigilance is key in this early stage.

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