GATEHAMPTON VENTURES LTD

Executive Summary

GATEHAMPTON VENTURES LTD is a small, founder-controlled health and wellness business showing signs of financial contraction in assets and equity but maintaining positive liquidity and solvency. While the business is currently stable, focused cash flow management and careful asset strategy are critical to avoid worsening financial health. Implementing tighter financial controls and exploring funding options will improve resilience and support future growth.

GATEHAMPTON VENTURES LTD - Analysis Report

Company Number: 12565530

Analysis Date: 2025-07-29 20:26 UTC

Financial Health Assessment for GATEHAMPTON VENTURES LTD (as of 31 March 2024)

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1. Financial Health Score: C

Explanation:
The company shows signs of financial strain compared to previous years, with a noticeable decline in net assets and current assets, but it still maintains positive net assets and a healthy net current asset position. This indicates the business is surviving but experiencing symptoms of financial distress, possibly from reduced liquidity or asset utilization. Hence, a moderate grade of C reflects these mixed signals.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£1,874	Reduced from £3,394 in 2023; suggests asset disposal or impairment.
Current Assets	£1,543	Sharp decrease from £14,749 in 2023; symptom of liquidity tightening.
Current Liabilities	£190	Decreased significantly from £9,264 in 2023; indicates better short-term debt management or reduced borrowings.
Net Current Assets	£1,353	Healthy positive working capital, indicating short-term obligations can be met.
Total Net Assets	£2,627	Declined from £7,679 in 2023; a sign of erosion in overall financial buffer.
Share Capital	£100	Minimal capital base typical for micro-entity, shareholder funds primarily from retained earnings.
Employees	1	Minimal headcount, reflecting small operational scale.

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3. Diagnosis

GATEHAMPTON VENTURES LTD is a micro-entity operating in the physical well-being and other service activities sector. The company’s financial health shows symptoms of distress when compared to prior periods, particularly the dramatic fall in current assets and net assets over the last year. This could be due to the sale of fixed assets, reduced cash or receivables, or one-off operational challenges. However, the company has successfully managed to reduce current liabilities considerably, improving its net current asset position and maintaining liquidity to meet short-term obligations.

The shrinking asset base and net equity suggest the company might be relying more on operational cash flow rather than external financing or asset-backed funding. Despite these symptoms, the company remains solvent and operational with positive shareholder funds and net assets.

The director’s control and small staff size indicate a closely held, founder-managed business with potentially limited access to external capital markets, which may heighten sensitivity to cash flow fluctuations.

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4. Recommendations

• Strengthen Cash Flow Management:
  The sharp decline in current assets suggests possible cash flow challenges. Focus on accelerating receivables collection and managing payables to ensure smooth liquidity.

• Review Asset Utilization:
  Fixed assets have decreased significantly. Assess whether asset disposals were strategic or due to financial necessity; consider re-investing in productive assets if growth is planned.

• Cost Control and Efficiency:
  With a single employee and small scale, ensure overhead costs are tightly controlled to preserve profitability.

• Explore Financing Options:
  If cash reserves are low, consider small business loans or grants to bolster working capital—this can help cushion operational fluctuations.

• Regular Financial Monitoring:
  Establish monthly financial reviews to detect early symptoms of distress and adapt quickly, ensuring the business remains on a healthy trajectory.

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