FLY A KITE LTD

Executive Summary

FLY A KITE LTD shows a promising financial start with strong liquidity and positive net assets, indicating a healthy financial "pulse" typical of a well-managed start-up. The company is solvent and capable of meeting its short-term obligations comfortably. Continued focus on profitability and cautious growth will be critical to maintain and improve financial health as the business matures.

FLY A KITE LTD - Analysis Report

Company Number: 15393192

Analysis Date: 2025-07-20 13:52 UTC

Financial Health Assessment Report for FLY A KITE LTD

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1. Financial Health Score: B

Explanation:
FLY A KITE LTD displays a solid initial financial position for a start-up company in its first full financial year. The company shows a healthy liquidity buffer, positive net current assets, and modest fixed assets relative to its size and activity. The "B" grade reflects a sound financial foundation with good cash resources and shareholder equity, but as a newly incorporated entity, it lacks a longer track record and profitability data to support a higher rating.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,830	Small tangible asset base typical for a start-up; indicates modest investment in equipment.
Current Assets	92,867	Strong current assets driven primarily by cash (£89,754) providing good liquidity "pulse".
Current Liabilities	80,013	Current obligations are substantial but comfortably covered by current assets (liquidity buffer).
Net Current Assets	12,854	Positive working capital; a "healthy cash flow" symptom showing ability to meet short-term debts.
Net Assets (Equity)	14,684	Positive net worth indicates company is solvent and funded by shareholder equity.
Share Capital	2	Nominal share capital consistent with a small private company.
Profit and Loss Reserve	14,682	Accumulated profits or retained earnings reflect early retained value creation or initial funding.

Liquidity:
The company holds a strong cash position relative to current liabilities, suggesting no immediate risk of cash flow distress. This is akin to a patient with a strong heartbeat—a good sign of operational viability.

Solvency:
Net assets are positive, indicating the company’s total assets exceed liabilities. The equity cushion here is thin but healthy, which is typical for a young company.

Activity & Size:
The company is micro/small-sized with 2 employees, consistent with the account category and typical for a start-up consultancy business.

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3. Diagnosis

FLY A KITE LTD is in the early stages of business development, showing "healthy vital signs" such as strong liquidity, positive working capital, and solvency. The financial "symptoms" suggest sound cash management and the ability to cover short-term debts without strain. However, the company’s limited operating history means there is little data on profitability trends or revenue growth, which are crucial for long-term prognosis.

There are no signs of financial distress such as overdue filings, excessive liabilities, or negative net assets. Both directors/controlling shareholders have balanced ownership and control, indicating stable governance. The company operates in management consultancy, which typically has low fixed asset requirements and relies heavily on human capital and intellectual property.

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4. Recommendations

• Monitor Cash Flow Regularly: Maintain the current strong liquidity position by forecasting cash flow to avoid any unexpected shortfalls as the company grows.

• Build Profitability Track Record: Focus on revenue generation and margin improvement to convert the retained earnings into sustainable operating profits. This will strengthen the equity base and reduce dependence on shareholder funding.

• Manage Current Liabilities: Keep an eye on the relatively high current liabilities; ensure payment terms and creditor relationships remain healthy to avoid liquidity tension.

• Invest in Growth Mindfully: Consider strategic investment in fixed assets or staff only when revenue streams are stable, to avoid overextending financial resources.

• Prepare for Future Compliance: Although currently filing abridged accounts and exempt from audit, plan for scaling accounting and compliance as the company grows into the small or medium category.

• Governance and Control: Directors should keep clear records and maintain transparency to uphold confidence among shareholders and stakeholders.

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