FLIGHT LEVEL CHANGE LTD

Executive Summary

Flight Level Change Ltd shows a solid financial foundation for a start-up with strong liquidity and positive equity. While the company is too young for a long-term prognosis, current indicators suggest a healthy financial "heartbeat" with no distress signals. Focused management of working capital and strategic growth planning will be key to sustaining and improving financial wellness.

FLIGHT LEVEL CHANGE LTD - Analysis Report

Company Number: 14737847

Analysis Date: 2025-07-29 13:31 UTC

Financial Health Assessment for Flight Level Change Ltd

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1. Financial Health Score: B

Explanation:
Flight Level Change Ltd demonstrates a generally healthy financial position for a newly incorporated micro-entity. The company has positive net assets and net current assets, indicating that it can meet short-term obligations comfortably. However, due to its very early stage of operation (first-year accounts) and limited financial history, the score is a cautious B rather than higher. This reflects a "healthy but young" financial condition with room for growth and further stability.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£1,058	Minimal investment in long-term assets, typical for a start-up in IT consultancy.
Current Assets	£29,221	Strong short-term resources, mainly cash or receivables, providing liquidity.
Current Liabilities	£15,954	Short-term debts are moderate but well-covered by current assets.
Net Current Assets (Working Capital)	£13,548	Positive working capital, indicates good short-term financial health.
Net Assets (Equity)	£14,606	Positive net worth, showing the company’s value exceeds liabilities.
Shareholder Funds	£14,606	Equity fully supports the business, no signs of insolvency.
Number of Employees	1	Very small operation, consistent with micro classification.

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3. Diagnosis

The company is in the "healthy infancy" stage of its financial lifecycle. The balance sheet shows a robust liquidity position—"healthy cash flow" implied by strong current assets relative to current liabilities. There are no signs of financial distress such as negative net assets or excessive current liabilities.

The £1,776 director loan during the year, repaid post-year-end, is a minor symptom typical of early-stage businesses managing working capital flexibly. The company's exemption from audit requirements reflects its micro-entity status, reducing administrative burden.

The sole director, who is also the majority shareholder, exerts full control, which is common in new private limited companies but suggests dependence on this individual’s management and financial decisions.

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4. Recommendations

• Maintain Positive Working Capital: Continue to monitor cash flow closely to sustain liquidity, especially as the company scales.
• Build Reserves: Aim to retain profits to increase shareholder funds and buffer against future uncertainties.
• Formalize Director Loan Policies: Ensure any director advances are well documented and repaid promptly to avoid tax or legal complications.
• Plan for Growth: Since the company is in IT consultancy and software development, invest in fixed assets or intangible assets (software, licenses) as revenue grows.
• Consider Financial Forecasting: Develop cash flow forecasts and budgets to anticipate funding needs or potential shortfalls.
• Review Governance: Although small, consider establishing additional oversight or advisory support as business complexity increases.

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