GLOBAL ATLAS LTD
Executive Summary
GLOBAL ATLAS LTD is a very small but financially stable micro-entity, showing a modest profit and positive net assets. While the company is currently financially solvent with steady turnover, its limited capital base and operational scale pose risks to resilience and growth. Strengthening financial reserves and focusing on revenue growth are recommended to ensure healthier future financial wellness.
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This analysis is opinion only and should not be interpreted as financial advice.
GLOBAL ATLAS LTD - Analysis Report
Financial Health Assessment: GLOBAL ATLAS LTD (FYE 31 Dec 2024)
1. Financial Health Score: C
Explanation:
GLOBAL ATLAS LTD shows signs of a stable but very modest financial position typical of a micro-entity startup or early-stage business. The company maintains a positive net asset base and profitability in the latest year, but the scale of operations is very small with minimal working capital. The score “C” reflects a company that is financially solvent and generating a small profit, but vulnerable due to low asset base and limited financial buffer.
2. Key Vital Signs
Metric | 2024 Value | Interpretation |
---|---|---|
Turnover | £47,346 | Consistent but very low revenue scale |
Profit/(Loss) for period | £1,172 | Small profit indicating initial business viability |
Net Assets / Shareholders Funds | £1,000 | Minimal equity base; reflects small capital investment |
Total Assets less Current Liabilities | £1,000 | Indicates working capital is positive but minimal |
Average Employees | 0 | No staff; likely owner-operated or reliant on contractors |
Account Category | Micro | Simplified reporting; limited operational scale |
Interpretation:
- Healthy Cash Flow: The company’s profit, although modest, shows it is generating more income than expenses, a good "heartbeat" sign.
- Low Capitalization: The net assets of only £1,000 reflect a very thin financial cushion—this is akin to a patient with normal vital signs but low reserves in the bloodstream.
- No Employees: Operating without employees suggests a lean structure but also potential capacity constraints.
- Stable Turnover: Turnover is nearly flat over three years, indicating steady but not growing revenue.
3. Diagnosis: Financial Condition & Underlying Health
GLOBAL ATLAS LTD presents as a micro-entity at the earliest stages of development or with a very focused niche. The financial statements show a stable but very limited scale of operation with consistent revenues around £47k and a small profit in the latest year after a minor loss previously. The company’s net assets and working capital remain minimal, reflecting a low buffer to absorb shocks or invest in growth.
- Symptoms of Financial Stability: Positive net assets and a return to profitability suggest the business is not in distress and is managing costs effectively.
- Symptoms of Fragility: The low level of capital and absence of employees point to vulnerability if market conditions change or unexpected expenses arise. There is limited capacity to scale without additional investment or resources.
- No Audit Required: Reflects smaller size and lower regulatory burden, but also less external financial scrutiny.
The company’s industry mix (education, media representation, and online retail) is diverse but at a scale that appears to be very early-stage or highly specialized.
4. Prognosis: Future Financial Outlook
Given the current financial indicators, the prognosis is cautiously optimistic but contingent on strategic actions:
- Positive Outlook: Continued modest profitability indicates the company can sustain current operations and potentially build incremental growth.
- Risks: The business has very limited financial reserves, so any operational disruption or market downturn could quickly lead to cash flow stress. Without investment to increase capital or broaden revenue streams, growth will be constrained.
- Growth Potential: The company might benefit from scaling its operations, perhaps by hiring staff or investing in marketing to expand turnover beyond current plateau levels.
5. Recommendations: Actions to Improve Financial Wellness
- Build Financial Reserves: Consider increasing capital injection or retaining earnings to improve net asset base and working capital cushion—this is akin to building strength in the patient’s immune system.
- Revenue Growth Focus: Explore opportunities to diversify or expand sales channels to lift turnover beyond the current flat trend. This could alleviate symptoms of stagnation.
- Cost Control and Efficiency: Maintain tight control over expenses to protect the modest profit margin and avoid slipping back into losses.
- Enhance Operational Capacity: Evaluate the need for part-time or contract staff to support growth initiatives without overextending fixed costs.
- Financial Monitoring: Regularly review cash flow forecasts and key financial metrics to detect early warning signs of distress and respond proactively.
- Consider Strategic Partnerships: Leverage industry connections or collaborations to enhance market reach and services without heavy upfront investment.
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