Company Number: 13001070

Analysis Date: 2025-07-20 14:20 UTC

Financial Health Assessment: FLEXED PHYSIO LTD (as of 30 November 2024)

---

1. Financial Health Score: A-

Explanation: FLEXED PHYSIO LTD demonstrates strong financial health for a micro-entity. The company shows significant growth in net assets and working capital over recent years, indicating robust liquidity and a solid balance sheet. While the business is small and has only one employee (the director), its financial "vital signs" suggest healthy operations and prudent financial management. The slight deduction from a perfect A is due to limited scale and dependence on a single key individual, which is common in micro-businesses.

---

2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£34,384	Increased substantially, reflecting investment in long-term resources. Healthy as assets grow.
Current Assets	£136,812	Healthy and more than doubled since last year, indicating strong liquidity.
Current Liabilities	£64,266	Increased but well covered by current assets, indicating good short-term solvency.
Net Current Assets (Working Capital)	£73,739	Strong positive working capital, showing capacity to meet short-term obligations comfortably.
Net Assets	£106,120	Significant increase from £30,490 in 2023, indicating retained profits or capital injections.
Share Capital	£100	Minimal share capital, typical for micro-entities; growth is funded mainly through reserves and profits.
Employee Count	1	Single employee (director), reflecting micro-business scale and potential operational risk if key person absent.
Loans to Director	£0 (fully repaid)	Previously had director loans but fully repaid, improving financial health and reducing internal liabilities.

Interpretation:

• The rise in fixed assets and current assets demonstrates the company is investing in its business and building cash/resources.
• Current liabilities have increased but remain well covered by current assets, indicating no immediate liquidity distress.
• The net assets growth (more than tripled) is a key positive sign—this reflects retained earnings accumulation and possibly improved profitability.
• The company maintains a clean balance sheet with no outstanding director loans at year-end, reducing risk.
• Being a micro-entity, the scale is small but financial indicators suggest healthy operations and growth.

---

3. Diagnosis

Underlying Business Health:

• Liquidity: The company exhibits a "healthy cash flow" equivalent in balance sheet terms, with net current assets of £73,739. This "vital sign" shows the company can comfortably pay its short-term debts.
• Solvency: The net assets of £106,120 versus minimal share capital indicate the company has built up a solid equity base. This "strong heart" of the business reduces risk of insolvency.
• Growth: The significant increase in fixed and current assets points to reinvestment and expansion, a positive "sign of vitality."
• Risk Factors: Being a single-person operation (director also the sole employee), there is some "dependency risk" if the director is unavailable. This is a typical "symptom" of micro-businesses.
• Governance: The director is also the company secretary, common at this scale but suggests limited segregation of duties, which could be a "weak artery" in corporate governance.

Overall, the company is "financially fit," with no symptoms of distress such as overdue filings, negative working capital, or increasing debt.

---

4. Recommendations

To maintain and improve financial wellness, FLEXED PHYSIO LTD should consider:

• Diversify Key Personnel: Mitigate "single point of failure" risks by developing backup support or engaging additional professional resources.
• Continue Prudent Asset Management: Monitor fixed asset investments to ensure they generate returns and do not strain cash flow.
• Maintain Strong Working Capital: Keep current assets well above current liabilities to preserve liquidity "breathing room."
• Improve Corporate Governance: If growth continues, consider appointing an independent company secretary or additional directors to strengthen oversight.
• Plan for Growth: Use the strong equity base as a "healthy heart" to support expansion strategies, marketing, or service diversification.
• Monitor Director Loans: Maintain transparency and avoid reliance on director loans to preserve clean financial "blood flow."

---