Company Number: 14525357

Analysis Date: 2025-07-20 14:08 UTC

Financial Health Assessment for GRACE GAMES LTD

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1. Financial Health Score: D

Explanation:
The company shows minimal financial activity with very limited assets and equity. The financial "vital signs" indicate a fragile state, akin to a patient with very low energy and minimal reserves, potentially at risk if any adverse events occur. The lack of revenue or profit data and very limited cash reserves suggest early-stage development or dormancy rather than a robust operating business.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash in Hand	1,000	Extremely low cash reserves, indicating limited liquidity and capacity to cover immediate expenses.
Total Assets Less Current Liabilities	1,000	Net current assets equal to cash, showing no other working capital buffer.
Shareholders’ Funds (Equity)	1,000	Entirely composed of share capital; no retained earnings or accumulated profits. Suggests no trading or profitability yet.
Number of Employees	0	No staff employed, implying no ongoing operational activities or revenue generation capability.
Account Category	Micro	Smallest reporting category, consistent with minimal business scale.
Status	Active	Company is currently registered and not under distress processes like liquidation or administration.

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3. Diagnosis

The company resembles a patient in the initial stages of treatment: just established (incorporated Dec 2022) and without significant operational history or financial activity. The balance sheet is essentially flat with only initial share capital and cash of £1,000, with no current liabilities or fixed assets recorded. There is no indication of revenue generation or profit yet, no employees, and no investments in assets to drive business operations.

This "symptom" profile suggests the business is either in a pre-revenue startup phase, possibly engaged in product development or planning, or it could be dormant in operational terms despite active status. The absence of an income statement and retained earnings confirms no trading results have been recorded.

Ownership and control have shifted recently, possibly indicating changes in strategy or management, but operationally the business shows no signs of growth or financial robustness yet.

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4. Recommendations

• Build Operational Capacity: To improve financial health, the company needs to move beyond the "startup incubation" phase by generating revenue streams, developing products, or acquiring clients. This will improve cash flow and build reserves.
• Liquidity Management: Increase cash reserves to ensure the company has a healthy liquidity buffer for operational expenses and unforeseen costs.
• Financial Record Keeping: Maintain detailed accounting records including profit and loss statements to track business performance and identify issues early.
• Strategic Planning: Develop and implement a clear business plan focusing on growth drivers in the computer game publishing sector (SIC 58210), aiming for sustainable revenue.
• Consider Funding Options: Explore external funding or investment to support product development, marketing, and hiring to accelerate business progress.
• Monitor Director Changes: Stability in the board and management can contribute to consistent strategic direction and improved investor confidence.

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