FRAME & SWIFT LIMITED

Executive Summary

FRAME & SWIFT LIMITED is a young veterinary services company demonstrating healthy liquidity and asset growth with a positive net asset position. Key strengths include strong working capital and investment in operations, while high receivables highlight the need for careful cash flow management. Overall, the company’s financial health is solid with promising prospects if current prudent management continues.

FRAME & SWIFT LIMITED - Analysis Report

Company Number: 15020499

Analysis Date: 2025-07-29 20:24 UTC

Financial Health Assessment Report for FRAME & SWIFT LIMITED

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1. Financial Health Score: B

Explanation:
FRAME & SWIFT LIMITED demonstrates solid early-stage financial health with positive net assets, healthy working capital, and growing tangible asset investment. The company is newly incorporated (2023) but shows promising signs of sound financial management and operational capacity. However, as a young business, there remains some uncertainty related to the establishment of sustainable profitability and cash flow generation, which tempers the score to a B rather than an A.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	1,137,507	Strong liquidity base, including cash and receivables.
Cash at Bank	252,873	Healthy cash reserve, indicating good short-term liquidity.
Debtors	785,756	Significant receivables; potential future cash inflow.
Stocks	98,878	Inventory held, relevant to operations; moderate level.
Current Liabilities	878,716	Obligations due within a year; manageable relative to assets.
Net Current Assets (Working Capital)	258,791	Positive working capital signals the company can cover short-term debts.
Tangible Fixed Assets	266,035	Investment in physical assets reflects operational capacity.
Net Assets (Equity)	519,877	Positive net worth; indicates retained earnings or capital infusion.
Share Capital	175	Nominal initial capital; growth supported by retained profits.
Average Staff Employed	7	Stable workforce size for a small veterinary practice.

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3. Symptoms Analysis

• Liquidity Health: The company holds a healthy cash balance (£252k) and positive net current assets (£259k), indicating a "healthy cash flow" environment for meeting immediate obligations. This is a vital sign of operational stability in early business life.

• Receivables Volume: Debtors are high (£785k) relative to cash, suggesting a reliance on credit sales or outstanding client payments. While not uncommon in service industries, this could be a "symptom of potential cash flow strain" if collections slow.

• Assets Growth: Significant investment in tangible assets (£266k) during the first full year suggests the company is establishing infrastructure necessary for delivering veterinary services, a positive sign of commitment to growth.

• Profit Retention: Net assets grew from £175 (initial) to £519,877, reflecting retained earnings or capital injections. This "healthy profit reserve" indicates the company is building financial resilience.

• No Audit Requirement: The company qualifies for exemption under small company rules, which is typical but means detailed audit insights are unavailable. This places some reliance on management accuracy and transparency.

• Staffing Stability: Consistent staffing of 7 employees indicates steady operational scale without rapid expansion, which can reduce risk in the early phase.

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4. Diagnosis: Overall Financial Condition

FRAME & SWIFT LIMITED presents as a "financially stable and growing young enterprise." The company shows strong liquidity and positive working capital, both critical for covering short-term liabilities and avoiding financial distress symptoms. The investment in fixed assets and inventory aligns with operational needs in veterinary activities and signals readiness for service delivery.

The primary cautionary symptom is the high level of debtors, which could pressure cash flow if not managed carefully. Since the company is newly incorporated, it has not yet established a long track record of profitability or cash flow sufficiency. However, the current data suggests sound financial stewardship and no immediate distress signals.

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5. Prognosis: Future Financial Outlook

If FRAME & SWIFT LIMITED maintains effective control over receivables and continues managing expenses prudently, it is well-positioned to strengthen profitability and cash flow generation. The company's investment in tangible assets and stable staffing bodes well for sustainable growth in the veterinary service market.

Risk factors to monitor include debtor collection efficiency and any unexpected increases in liabilities. Continued positive net asset growth and healthy liquidity will be crucial to avoiding "symptoms of financial distress" as the business scales.

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6. Recommendations for Financial Wellness Improvement

1. Enhance Debtor Management:
   Implement or tighten credit control procedures to reduce debtor days and improve cash inflows, ensuring the healthy cash flow vital sign remains strong.

2. Monitor Working Capital Regularly:
   Regular analysis of current assets vs. liabilities will detect early signs of liquidity stress and allow timely corrective action.

3. Plan for Profitability Tracking:
   Although the company is exempt from audit, consider internal management accounts or external reviews to track profit margins and operational efficiency.

4. Capital Structure Review:
   Explore opportunities to strengthen equity base or secure financing at favourable terms if expansion is planned, reducing reliance on short-term liabilities.

5. Risk Management:
   Maintain vigilance on potential operational risks such as client payment defaults or unforeseen expenses that could impact liquidity.

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