FINOMINAL FINANCE LTD

Executive Summary

FINOMINAL FINANCE LTD has demonstrated a strong financial recovery from initial losses, now boasting solid liquidity and positive equity indicative of sound financial health for a micro-entity. The company’s asset-light model aligns with its service-oriented business, and ongoing careful management of cash flow and growth strategy will be essential for sustained financial wellness.

FINOMINAL FINANCE LTD - Analysis Report

Company Number: 13143676

Analysis Date: 2025-07-20 18:58 UTC

Financial Health Assessment Report: FINOMINAL FINANCE LTD

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1. Financial Health Score: B

Explanation:
FINOMINAL FINANCE LTD demonstrates a generally healthy financial position for a micro-entity in its early years of operation. The company has shown significant improvement in net assets and working capital over the last two years, reflecting growing financial stability. While the company is not yet at a large scale, its strong current asset base, positive net assets, and low liabilities indicate sound financial health. The score B reflects solid progress but acknowledges the company’s early-stage nature and modest fixed assets.

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2. Key Vital Signs

Metric	Latest Value (30/11/2023)	Interpretation
Fixed Assets	£362	Minimal investment in long-term assets, typical for a micro company focused on services.
Current Assets	£52,346	Healthy liquid assets, indicating strong cash or equivalents to cover near-term needs.
Current Liabilities	£-1,472	Negative current liabilities (creditors) suggest no short-term financial burden; possibly prepayments or accounting treatment.
Net Current Assets	£53,818	Very strong working capital, a "healthy cash flow" indicator ensuring operational liquidity.
Net Assets (Equity)	£51,337	Positive and growing shareholder equity, indicating business value growth and retained earnings.
Share Capital	£2	Nominal capital, typical for micro companies; equity primarily from retained earnings.
Number of Employees	1	Small, focused operation with low overheads.

• Trend:
  • From 2021 to 2023, net assets improved from negative (-£5,027) to positive (£51,337), indicating recovery from initial losses and successful capital build-up.
  • Current assets have grown substantially, enhancing liquidity.
  • Current liabilities have decreased, removing immediate financial "symptoms of distress".

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3. Diagnosis

• Financial Condition:
  FINOMINAL FINANCE LTD is in a stable and improving financial condition. The company started with net liabilities (negative equity) in its first two years, typical for a startup absorbing initial costs. However, its balance sheet shows a marked turnaround with strong liquidity and positive equity in the latest financial year.

• Symptoms Analysis:

  • The lack of significant fixed assets aligns with the nature of its business activities (IT consultancy, software development, education services) which are often service-based and asset-light.
  • Very positive net current assets suggest the company can meet short-term obligations comfortably, indicating no immediate cash flow problems.
  • The increase in equity and retained earnings points to profitable operations or capital injections, improving solvency.
  • Small share capital indicates founders’ reliance on operational cash flow and reserves rather than heavy equity funding.

• Potential Concerns:

  • As a micro-entity with only one employee, scalability and growth may be limited unless the company invests in expanding resources.
  • The business is young (incorporated 2021), so sustained profitability over the next years will be crucial to maintain momentum.
  • Absence of audit and limited disclosures (micro-entity regime) mean some financial nuances may be less visible to stakeholders.

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4. Recommendations

• Maintain Healthy Cash Flow:
  Continue to monitor working capital closely to avoid any liquidity crunch. Ensure receivables and payables are managed efficiently.

• Plan for Growth:
  Consider strategic investments in human resources or technology to expand service capacity, which will improve fixed assets and revenue potential.

• Strengthen Equity Base:
  Although net assets have improved, exploring modest equity injections or retained earnings reinvestment can provide buffer for unforeseen expenses.

• Regular Financial Reviews:
  Even as a micro-entity, periodic internal reviews or voluntary audits could enhance financial transparency and stakeholder confidence.

• Explore Funding Options:
  If expansion is planned, investigate grants, loans, or investor funding tailored to tech and education startups.

• Monitor Industry Trends:
  Stay alert to regulatory or market changes in IT consultancy and education sectors to adapt business strategy proactively.

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Medical Analogy Summary

FINOMINAL FINANCE LTD is showing signs of robust "financial health" after its "infancy" phase marked by initial losses ("symptoms of distress"). Its "healthy cash flow" and strong "balance sheet immunity" suggest it is recovering well and ready to sustain more growth. Continuous monitoring and proactive management are recommended to keep this positive trajectory and avoid "financial illness."

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