GINGER GLOW LTD

Executive Summary

GINGER GLOW LTD is a newly established micro private limited company with a stable financial base indicated by positive net current assets and shareholder funds. The company shows no immediate liquidity distress but remains in the early startup phase with no employees or profitability yet. To ensure ongoing financial health, the company should focus on managing cash flow, generating revenue, and controlling costs while maintaining compliance and preparing for future growth.

GINGER GLOW LTD - Analysis Report

Company Number: SC784964

Analysis Date: 2025-07-20 12:02 UTC

Financial Health Assessment for GINGER GLOW LTD

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1. Financial Health Score: B

Explanation:
GINGER GLOW LTD, as a newly incorporated micro private limited company, shows an early-stage financial position with positive net current assets and shareholder funds. The company is solvent, with working capital slightly above liabilities, indicating basic financial stability. Given the limited operating history and small scale, the score reflects a stable but nascent financial condition with room for growth and improvement.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	2,078	Cash or liquid resources available to meet obligations. Healthy for a micro entity.
Current Liabilities	1,013	Short-term obligations due within a year. Moderate relative to assets.
Net Current Assets	1,065	Positive working capital indicates ability to cover short-term debts.
Shareholders Funds	1,065	Equity invested by owner; positive and equal to net current assets.
Employee Count	0	No employees yet, indicating a very early-stage or owner-run operation.

• Liquidity: The positive net current assets ("healthy cash flow" equivalent) suggest the company can meet immediate financial commitments without distress.
• Leverage: No long-term liabilities reported; low financial risk.
• Profitability: No profit/loss data yet available; likely minimal or break-even since operations are just starting.
• Compliance: Accounts and confirmation statements filed on time, indicating good administrative health.

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3. Diagnosis

GINGER GLOW LTD exhibits the financial "vital signs" of a young, micro-sized business in its startup phase. The balance sheet reveals a small but positive buffer between current assets and liabilities, which is a "healthy pulse" indicating no immediate liquidity concerns. The shareholder funds mirror the net current assets, showing the business is predominantly equity-funded by the sole owner, Mrs. Stephanie Kyle.

The absence of employees and minimal liabilities is typical for a company in its infancy, likely focusing on initial market entry or setup. The financial statements are unaudited but comply with micro-entity reporting standards, which is standard for this scale.

However, the company is yet to build a track record of profitability or cash flow generation from operations, which is a "symptom" that must be monitored as it grows. The risk at this stage is typical startup risk — lack of revenue generation or unexpected expenses could strain liquidity.

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4. Recommendations

1. Cash Flow Management:
   Maintain close oversight on cash inflows and outflows to preserve the positive working capital. Early-stage businesses often face volatility in cash flow; building a cash reserve will act as a "financial immune system" against shocks.

2. Revenue Generation Focus:
   Accelerate client acquisition and revenue streams in the advertising agency sector to shift from startup mode to operational profitability.

3. Cost Control:
   Monitor and control operating expenses carefully, especially before hiring employees, to avoid unnecessary overheads.

4. Financial Reporting:
   Continue timely filing of accounts and confirmation statements to maintain compliance and credibility with stakeholders.

5. Strategic Planning:
   Develop a short-term business plan outlining key milestones (sales targets, marketing activities) to transition from startup to sustainable operation.

6. Funding Strategy:
   Consider future funding options if growth requires capital injection, but balance this with the risk of increased liabilities.

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