FLOW BUSINESS SUPPORT LIMITED

Executive Summary

FLOW BUSINESS SUPPORT LIMITED, a micro-entity in its first year, shows solid financial health with positive net assets and working capital, indicating good liquidity and solvency. While the business is stable, it remains small and vulnerable, so strategic actions to build financial buffers and diversify income will support sustainable growth. With prudent management, the company has a positive outlook for steady development in the business support services sector.

FLOW BUSINESS SUPPORT LIMITED - Analysis Report

Company Number: 14989476

Analysis Date: 2025-07-29 17:39 UTC

Financial Health Assessment: FLOW BUSINESS SUPPORT LIMITED

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1. Financial Health Score: B

Explanation:
FLOW BUSINESS SUPPORT LIMITED exhibits a sound financial footing typical of a newly incorporated micro-entity. The company shows positive net current assets and net assets, indicating a "healthy pulse" in its liquidity and solvency. However, the relatively small scale and early stage of operations call for caution, as the business is still in its infancy with limited financial history and modest asset base.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	932	Tangible long-term assets exist but are minimal, indicating light capital investment.
Current Assets	12,677	Adequate liquid assets to cover short-term obligations, a good sign of liquidity.
Current Liabilities	12,269	Short-term debts nearly match current assets, leaving a small buffer for working capital.
Net Current Assets	823	Positive working capital ("healthy cash flow"), enabling day-to-day operations without stress.
Total Assets less Current Liabilities	1,755	Positive, signifying the company can meet liabilities and has some buffer.
Net Assets (Shareholders' Funds)	1,422	Equity base is positive but modest, showing initial shareholder investment and retained earnings.

• Company Age: 1 year (incorporated July 2023) — very young, limited financial track record.
• Employee Count: 1 (low overheads, manageable fixed costs).
• Account Category: Micro (simplified reporting, small scale).

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3. Diagnosis

The company displays symptoms of financial health consistent with an emerging business in its startup phase. The positive net current assets indicate the company’s ability to meet short-term liabilities, which is akin to a stable heartbeat in financial terms. The modest fixed assets and net assets reflect the company's early stage with limited capital deployment but no signs of distress.

The equilibrium between current assets and current liabilities, with a slight positive margin, suggests the company is managing its working capital prudently, avoiding liquidity crunches. The absence of overdue filings and the presence of a single director who also holds full control imply streamlined governance but also concentrated decision-making risk.

Given these factors, the diagnosis is that FLOW BUSINESS SUPPORT LIMITED is financially stable but remains vulnerable to external shocks or rapid scaling demands due to its limited asset base and short operating history.

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4. Recommendations

To enhance the company’s financial wellness and support sustainable growth, the following actions are recommended:

• Strengthen Working Capital Buffer:
  Aim to increase net current assets to at least 10-20% above current liabilities to cushion against unforeseen expenses or revenue delays.

• Build Fixed Assets Strategically:
  Consider investing in essential operational assets or technology that can improve service delivery efficiency without overextending capital.

• Diversify Income Streams:
  As a business support service provider, explore complementary services to broaden revenue base and reduce dependency on limited clients.

• Maintain Rigorous Financial Controls:
  Implement regular cash flow monitoring and budgeting to avoid liquidity “symptoms” such as delayed payments or overdrafts.

• Plan for Growth and Compliance:
  As the business expands, prepare to transition from micro-entity accounting to more comprehensive reporting to attract investors or lenders.

• Governance and Risk Management:
  Although current management is concentrated, consider advisory support or mentorship to mitigate decision-making risks.

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