FLOTSAM AND JETSON LIMITED

Executive Summary

FLOTSAM AND JETSON LIMITED demonstrates solid financial health with strong liquidity and positive working capital, reflecting good short-term financial stability. As a young retail business, it should focus on managing inventory and tax obligations to maintain this healthy financial condition and support future growth. Continued monitoring and enhanced transparency will further strengthen its financial wellness.

FLOTSAM AND JETSON LIMITED - Analysis Report

Company Number: 13837365

Analysis Date: 2025-07-29 17:40 UTC

Financial Health Assessment of FLOTSAM AND JETSON LIMITED

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1. Financial Health Score: B

Explanation:
FLOTSAM AND JETSON LIMITED shows a solid start-up phase with positive net current assets and no overdue filings, indicating good financial discipline. However, as a young company incorporated in 2022 with limited historical financial data and moderate current liabilities, there is room for improvement and monitoring for sustained growth.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	146,485	Healthy level of short-term assets, largely driven by a strong cash position (£109,634).
Cash at Bank	109,634	Indicates a "healthy cash flow" or good liquidity buffer for operational needs and unexpected costs.
Debtors	16,719	Moderate receivables; manageable and not overly high relative to cash.
Stock	20,132	Inventory on hand, which is normal for a retail clothing business; needs monitoring for obsolescence.
Current Liabilities	48,396	Represents short-term debts including trade creditors and tax liabilities; manageable but notable.
Net Current Assets	98,089	Positive working capital "vital sign," indicating the company can cover short-term obligations well.
Net Assets (Shareholders' Funds)	98,089	Indicates equity funding and retained earnings; positive net worth shows financial stability.
Employee Count	4	Small but growing workforce; consistent with a micro/small retail operation.
Overdue Filings	No	Compliant with Companies House filing requirements; good governance "symptom."

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3. Diagnosis

• Liquidity and Cash Flow: The company shows a "healthy cash flow" with a strong cash reserve relative to liabilities. This is a positive symptom indicating the ability to meet immediate financial obligations without distress.

• Working Capital: Positive net current assets (~£98k) signal that the company has enough short-term resources to cover its debts. This is a good "vital sign" but should be watched if inventory levels rise without corresponding sales.

• Profitability & Growth: The increase from minimal net assets in 2023 (£1) to nearly £100k in 2024 suggests that the company has generated retained earnings or capital injections over the year. However, detailed profit and loss data are not disclosed, so profitability assessment is limited.

• Business Stage: Being a relatively new company (incorporated 2022), FLOTSAM AND JETSON LIMITED is in the early growth phase. The presence of stock and debtors reflects operational activity in retail clothing.

• Governance and Control: The company is controlled by a single director and majority shareholder (Miss Moira Dixon), which simplifies decision-making but may limit external oversight.

• Potential Risk Factors:

  • Taxation and social security liabilities (~£38k) form the largest part of current liabilities and should be managed carefully to avoid cash flow strain.
  • Inventory valuation requires regular assessment for slow-moving or obsolete stock, common in clothing retail.

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4. Recommendations

• Maintain Strong Cash Reserves: Continue monitoring cash flow closely to keep liquidity high, ensuring the company can handle seasonal fluctuations typical in retail.

• Inventory Management: Implement robust stock control systems to avoid excess or obsolete inventory, which can tie up cash unnecessarily.

• Tax Planning: Manage tax and social security payments proactively to prevent accumulation of liabilities that could impair cash flow.

• Profit & Loss Transparency: Consider publishing summary profit and loss accounts to provide stakeholders with clearer insights into profitability and operational efficiency.

• Diversify Oversight: Explore involving additional non-executive advisors or finance professionals to provide external perspective and governance support.

• Growth Monitoring: As the company grows, track key financial ratios such as gross margin, debtor days, and creditor days to detect early symptoms of financial distress.

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Medical Analogy Summary

FLOTSAM AND JETSON LIMITED is like a young patient showing strong vital signs—healthy cash flow (good liquidity), positive working capital, and no overdue statutory obligations. While the immediate symptoms of financial distress are absent, the company remains in its formative stage and requires careful monitoring of inventory health and tax liabilities to maintain its financial wellness and support sustainable growth.

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