FERNS TM LIMITED

Executive Summary

FERNS TM LIMITED is currently dormant with nominal financial activity and minimal assets, reflecting its early stage of existence. While compliance is maintained, the company lacks operational cash flow and profitability, which limits its financial health rating. Activation of business trading and focused financial management will be essential steps toward improving its financial wellness and future viability.

FERNS TM LIMITED - Analysis Report

Company Number: 14684397

Analysis Date: 2025-07-29 15:17 UTC

Financial Health Assessment of FERNS TM LIMITED

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1. Financial Health Score: D (Dormant Status - Minimal Financial Activity)

Explanation:
FERNS TM LIMITED is classified as a dormant company with minimal financial transactions since incorporation. The financial data shows nominal balances (cash £1, net assets £1), indicating no active trading or operational business activity. While this status is not inherently negative, it implies limited financial vitality or business activity at present, hence a lower health grade.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Age	~2 years	Newly incorporated; early stage without operational history.
Account Category	Dormant	No significant financial transactions; minimal financial data available.
Cash Balance	£1	Practically no liquid assets; no operational cash flow.
Net Assets	£1	Reflects only the nominal share capital; no accumulated profits or retained earnings.
Shareholder Funds	£1	Equity position is nominal, indicating no business growth or profit retention yet.
Filing Compliance	Up to date	No overdue filings; good compliance with regulatory requirements.
Industry Classification	Other specialised construction activities (SIC 43999)	Industry sector identified but no trading evidence.
Directors and Control	Single director, full control by Ferns Group Ltd and Mr. Ian David Fern	Clear ownership structure.

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3. Diagnosis: Business Financial Health Overview

FERNS TM LIMITED is in the initial, non-operational stage of its business life cycle, currently classified as dormant. The "symptoms"—nominal cash and assets with no recorded trading—suggest the business is either in incubation or holding status, possibly awaiting activation or further investment. The company’s financial vital signs reveal no operational cash flow or profit generation, consistent with dormancy.

The absence of liabilities or complex financial transactions indicates no immediate financial distress. Compliance with filing deadlines is a positive sign, reflecting good governance despite inactive trading.

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4. Prognosis: Future Financial Outlook

Given the dormant status and absence of operating data, the future financial health depends on whether the company transitions to active trading. If the company begins trading and generating revenue, monitoring cash flow, profitability, and working capital will be critical to assess health progression. Conversely, prolonged dormancy with no operational activity may limit growth potential and investor interest.

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5. Recommendations to Improve Financial Wellness

• Activate Trading Operations: Begin business activities aligned with the SIC code (specialised construction) to generate revenue and build financial metrics.
• Build Cash Reserves: Ensure sufficient working capital to support initial operations and manage cash flow effectively.
• Regular Financial Monitoring: Once operational, track key financial metrics such as turnover, profit margins, current assets vs liabilities, and net assets to diagnose financial health continuously.
• Strategic Planning: Develop a clear business plan with financial projections to guide growth and secure financing if needed.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to preserve good standing and avoid penalties.
• Engage Financial Expertise: Consult with financial advisors or accountants to set up robust accounting practices and tax planning from the outset.

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