FRUIT GEEK LTD

Executive Summary

FRUIT GEEK LTD shows positive early-stage financial health with good liquidity and manageable short-term obligations but has limited equity and medium-term liabilities that require careful management. The company should focus on profitability tracking, managing medium-term debts, and building capital reserves to strengthen financial resilience. Maintaining good financial discipline and strategic planning will support sustainable growth.

FRUIT GEEK LTD - Analysis Report

Company Number: 14457740

Analysis Date: 2025-07-29 12:57 UTC

Financial Health Assessment for FRUIT GEEK LTD

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1. Financial Health Score: B-

Explanation:
FRUIT GEEK LTD, a micro-entity IT consultancy company incorporated in late 2022, shows early-stage financial stability with positive net current assets and net assets. However, the overall net asset base is small (£3,518), and the company carries medium-term liabilities exceeding short-term creditors, indicating some financial strain. The absence of profit and loss data limits insight into earnings health. The company is young and has a healthy working capital position, but the balance sheet strength is modest, suggesting a cautious rating.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£12,426	Adequate liquid and short-term assets to cover immediate expenses.
Current Liabilities	£4,013	Debts due within one year; manageable compared to current assets.
Net Current Assets (Working Capital)	£8,413	Positive working capital, indicating "healthy cash flow" potential.
Creditors After One Year	£4,895	Medium-term liabilities present, requiring future cash outflows.
Net Assets (Equity)	£3,518	Low equity base, typical for a young micro company but limited buffer.
Average Employees	2	Small operation, consistent with micro category.
Account Category	Micro	Simplified reporting; limited financial disclosures available.
Profit and Loss Account	Not filed	Lack of P&L limits insight into profitability and operational efficiency.

Interpretation:

• The company's balance sheet shows a "healthy pulse" in terms of liquidity with net current assets significantly positive, suggesting it can meet short-term obligations comfortably.
• The presence of creditors due after one year, almost equal to current liabilities, indicates future repayment obligations that require attention.
• The small net asset base reflects the early stage of the business and limited capital accumulation.
• Absence of profit/loss data is a symptom restricting a thorough diagnosis of operational health.

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3. Diagnosis

FRUIT GEEK LTD presents as a young, micro-sized IT consultancy business with an early "healthy cash flow" symptom visible in its positive net current assets. The company has effectively managed to keep current liabilities low relative to current assets, minimizing short-term financial distress signs. However, the presence of medium to long-term liabilities (creditors after more than one year) introduces some caution, as these obligations will need servicing in the future.

The low net asset amount is typical of a startup in its infancy stage but means the business has a limited financial "immune system" to absorb shocks or downturns. The absence of filed profit and loss data leaves a gap in assessing whether the business is generating sustainable profits or relying on capital injections or loans.

No overdue filings or compliance issues were detected, which is a positive sign of good administrative health and governance.

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4. Recommendations

To strengthen financial wellness and ensure sustainable growth, FRUIT GEEK LTD should consider the following steps:

1. Improve Profitability Monitoring:

   • Begin preparing and reviewing profit and loss statements internally if not filing externally, to monitor operational efficiency and profitability.
   • Identify revenue growth opportunities and control costs to build retained earnings and increase net assets.

2. Manage Medium to Long-Term Liabilities:

   • Develop a clear repayment plan for creditors due after one year to avoid liquidity crunches.
   • Explore refinancing options if needed to ease future cash flow pressures.

3. Build Capital Buffer:

   • Consider injecting additional equity or retained earnings to increase net assets, enhancing financial resilience.

4. Cash Flow Management:

   • Maintain the positive working capital trend by prudent management of receivables, payables, and inventory (if applicable).
   • Monitor cash flow forecasts regularly to detect early symptoms of financial stress.

5. Regular Financial Reporting:

   • Even as a micro-entity, maintain detailed financial records to support strategic decisions and attract potential investors or lenders.

6. Strategic Planning:

   • Align IT consultancy services with market demand and continuously assess competitive positioning to ensure sustainable revenue streams.

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