FIREOUT DEVOPS LTD

Executive Summary

FIREOUT DEVOPS LTD shows robust financial health with strong profits and liquidity for a start-up IT consultancy. The company’s efficient cost structure and positive net assets indicate good operational footing. To sustain this wellness, it should carefully manage cash flow, plan for growth, and diversify its human capital.

FIREOUT DEVOPS LTD - Analysis Report

Company Number: 14600357

Analysis Date: 2025-07-29 12:35 UTC

Financial Health Assessment Report for FIREOUT DEVOPS LTD

---

1. Financial Health Score: A-

Explanation:
FIREOUT DEVOPS LTD demonstrates a robust financial position for a micro-entity in its first full financial year. The company shows healthy profitability, solid working capital, and positive net assets, indicating strong operational efficiency and financial stability. The slight deduction from a perfect "A" reflects the early stage of the business and limited asset base, which is typical for a start-up IT consultancy.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Turnover	169,990	Reasonable revenue generation for a single-employee micro entity, indicating initial market traction.
Staff Costs	58,403	Represents about 34% of turnover, showing controlled labour expenses and lean operations.
Profit for the Period	82,909	Profitable with a strong margin (~49%), indicating effective cost management and business model viability.
Fixed Assets	1,100	Very low fixed assets, typical for IT service companies relying on human capital rather than equipment.
Current Assets	102,128	Includes cash and receivables, showing strong liquidity and ability to meet short-term obligations.
Current Liabilities	33,459	Manageable short-term debts; not excessive for the size of the company.
Net Current Assets	68,669	Positive working capital, a sign of good short-term financial health and operational efficiency.
Net Assets (Shareholder Funds)	69,769	Solid equity base for a new company, reflecting retained earnings and financial resilience.
Employee Count	1	Single director/employee operation, common for micro IT firms, indicating low overhead structure.

---

3. Diagnosis: Financial "Health" of the Company

FIREOUT DEVOPS LTD exhibits many "signs of health" akin to a patient with strong vital signs:

• Profitability is strong, which is a positive symptom showing that the company is generating more income than expenses, despite being in its infancy.
• Liquidity is healthy, with current assets significantly exceeding current liabilities, suggesting the company can comfortably cover its short-term obligations—like a patient with good hydration and stable blood pressure.
• The balance sheet shows net assets firmly positive, indicating that the company is not burdened by excessive debt.
• Low capital investment in fixed assets is typical for an IT consultancy relying on knowledge and skills rather than physical equipment, so this is not a concern.
• The single director/employee model means operational risks are concentrated, but also that overheads are minimal.
• The company is fully compliant with filing deadlines and maintains good governance, which is akin to a patient adhering to prescribed treatment plans.

Potential "risks" include:

• Limited diversification in human resources: reliance on one person could be a vulnerability.
• Early-stage company: while current indicators are healthy, long-term sustainability depends on growth, client retention, and market conditions.

---

4. Recommendations: Prescriptions for Financial Wellness

• Maintain strict cash flow monitoring: While liquidity is currently strong, ensure timely invoicing and collection to avoid cash flow "cramps."
• Plan for growth and resource diversification: Consider hiring or subcontracting additional staff to reduce operational risk associated with dependence on one individual.
• Invest in marketing and client acquisition: To build turnover beyond the current level, expand your client base and service offerings carefully to avoid overstretching.
• Monitor tax liabilities carefully: The company paid £23,191 in tax; ensure ongoing tax planning to optimize cash flow.
• Consider modest investment in technology tools: Although fixed assets are minimal, investing in productivity-enhancing software could improve operational efficiency.
• Keep compliance up to date: Continue filing accounts and confirmation statements promptly to avoid penalties and maintain good standing.

---

Executive Summary

FIREOUT DEVOPS LTD is financially healthy with strong profitability and liquidity for a micro-entity in its first year. The company demonstrates effective cost control and a solid equity base, indicating good initial business viability. To maintain and improve financial wellness, focus on sustaining cash flow, diversifying resources, and strategic growth.