Company Number: 13557554

Analysis Date: 2025-07-20 18:28 UTC

Financial Health Assessment for FONE WIZE LTD as of 31 August 2024

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1. Financial Health Score: B

Explanation:
FONE WIZE LTD shows solid financial footing with positive net assets, healthy working capital, and consistent growth in equity. The company is micro-sized, with a simple structure and limited fixed assets, typical for its industry. While its cash and current asset base is improving, the company should monitor its liabilities and scale operations carefully to maintain this positive trend.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£2,381	Low, typical for a service/repair micro company
Current Assets	£37,291	Healthy cash and receivables base, increased by ~37% YoY
Current Liabilities	£25,974	Manageable short-term debts, increased but covered by current assets
Net Current Assets (Working Capital)	£11,317	Positive and growing, indicating good short-term liquidity
Total Net Assets (Equity)	£13,698	Growing equity base, reflects retained profits and capital infusion
Average Employees	3	Small, growing workforce, consistent with micro-entity status

Interpretation:

• Healthy Cash Flow Signals: The increase in current assets outpaces liabilities, a sign of improving liquidity and effective cash management.
• Symptoms of Growth: Equity and net current assets have steadily improved from £1,116 in 2021 to nearly £13,700 in 2024, indicating profitability or capital injections.
• Low Fixed Assets: Reflects limited physical investment, consistent with a repair and retail business model relying on inventory and service operations rather than heavy machinery.

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3. Diagnosis

FONE WIZE LTD demonstrates a robust financial condition typical of a micro-entity in the repair and retail sector. The company's balance sheet shows:

• A healthy buffer between current assets and short-term liabilities, suggesting an ability to cover immediate obligations without distress.
• Consistent growth in shareholders’ funds and net assets, indicating retained earnings or additional capital contributions strengthening the equity base.
• Stable operational scale, with a small but growing workforce supporting business expansion.
• No signs of financial distress such as over-leveraging or negative working capital.

The business appears to be in a “healthy pulse” state, with no alarming symptoms of financial strain.

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4. Recommendations

• Maintain liquidity discipline: Continue to monitor working capital closely, ensuring current assets maintain a comfortable margin above liabilities to avoid cash flow crunches.
• Explore asset investment: Consider gradually increasing fixed assets if expansion or technology upgrades are planned to enhance operational efficiency.
• Plan for growth: With a positive equity trajectory, evaluate opportunities for scaling operations, possibly increasing employee count and expanding service/product range.
• Strengthen financial reporting: Although exempt from audit, consider voluntary financial reviews to identify efficiency improvements and build stakeholder confidence.
• Risk Management: Keep an eye on external risks such as supply chain disruptions or market changes in communication equipment repair and retail, adapting strategies accordingly.

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