FUTURE INTELLECT LIMITED

Executive Summary

FUTURE INTELLECT LIMITED shows a solid financial foundation with increasing fixed assets and equity, indicating growth and value creation. However, reduced current assets highlight a liquidity tightening that requires careful cash flow management to maintain operational health. With prudent financial controls, the company is well-positioned for sustainable future growth.

FUTURE INTELLECT LIMITED - Analysis Report

Company Number: 14264975

Analysis Date: 2025-07-20 16:08 UTC

Financial Health Assessment for FUTURE INTELLECT LIMITED

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1. Financial Health Score: B

Explanation:
FUTURE INTELLECT LIMITED demonstrates solid financial footing with positive net assets and shareholders’ funds growth. The company shows a healthy increase in fixed assets, and while current assets have declined, net current assets remain positive. The score of B reflects a good but not flawless financial condition, with room for improvement in liquidity management.

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2. Key Vital Signs (Core Financial Metrics)

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	14,295	2,812	Significant increase indicating investment in long-term resources — a healthy sign of growth.
Current Assets	5,538	11,891	Decline suggests cash or receivables have reduced — could indicate tighter liquidity.
Current Liabilities	3,089	5,257	Reduction in short-term debts is positive, reducing near-term financial pressure.
Net Current Assets	2,449	6,634	Positive working capital but decreased, signaling more cautious cash management needed.
Total Assets Less Current Liabilities	16,744	9,446	Growth shows improving overall asset base after covering short-term obligations.
Net Assets / Shareholders Funds	14,744	7,646	Increased equity shows value creation and retained earnings, reflecting financial strength.
Average Number of Employees	1	1	Small workforce consistent with micro-entity status, keeping overheads low.

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3. Diagnosis (What the Financial Data Reveals)

• Healthy Asset Growth: The company's fixed assets grew significantly (over 400%) from 2023 to 2024, indicating strategic investment in capital equipment or technology. This "healthy growth" suggests management is focused on expanding operational capacity or improving efficiency.

• Liquidity Symptoms: The drop in current assets, especially cash or receivables, alongside reduced current liabilities, shows that while the company is managing to reduce short-term debts, its liquid resources have contracted. This is a "symptom of tighter liquidity" that requires monitoring to avoid cash flow strain.

• Stable Working Capital: Positive net current assets confirm the company can meet its short-term obligations, but the decline from 6,634 to 2,449 signals reduced buffer. The business still has a "healthy cash flow cushion," but vigilance is needed.

• Equity Strength: The net assets and shareholders’ funds nearly doubled, reflecting profitability or capital injections, which is a "sign of robust financial health." This strengthens the company’s ability to absorb shocks and invest further.

• Micro-Entity Profile: The company remains small with only one employee, indicating a lean structure that supports low overheads but may limit rapid scaling without additional hires.

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4. Recommendations (Specific Actions to Improve Financial Wellness)

• Enhance Liquidity Management:
  Focus on improving cash conversion cycles, e.g., speeding up debtor collections or managing payables efficiently, to increase current assets and working capital.

• Monitor Fixed Asset Utilization:
  Ensure new fixed assets are generating expected returns. Regularly review asset productivity to avoid over-investment that may tie up cash unnecessarily.

• Consider Growth Funding:
  If growth ambitions require scaling, explore appropriate funding options (e.g., equity injection or small business loans) to maintain liquidity without over-leveraging.

• Maintain Cost Discipline:
  Keep overheads tight given the micro size, but prepare for potential incremental staffing to support growth, balancing cost and capacity.

• Regular Financial Reviews:
  Conduct quarterly financial health checks to track vital signs and symptoms early, enabling proactive management of cash flow and profitability.

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Executive Summary

FUTURE INTELLECT LIMITED exhibits strong financial fundamentals with solid asset growth and increased equity, signifying a healthy business foundation. Liquidity has tightened somewhat, representing a symptom that management should address to maintain smooth operations. Overall, the company is financially sound with good prospects if it continues to manage cash flow carefully and optimizes asset utilization.