GRACEAH LIMITED

Executive Summary

Graceah Limited shows strong financial health with significant growth in net assets and liquidity, underpinned by strategic investments in fixed assets. The company maintains healthy working capital and profitability, though moderate finance lease obligations require ongoing management. Enhanced reporting and diligent cash flow monitoring will further strengthen its financial wellness.

GRACEAH LIMITED - Analysis Report

Company Number: 13441192

Analysis Date: 2025-07-20 16:29 UTC

Financial Health Assessment for GRACEAH LIMITED

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1. Financial Health Score: B

Explanation:
Graceah Limited demonstrates solid financial footing with significant asset growth and positive net assets. The company has healthy working capital and improving equity. However, the presence of moderate long-term finance lease obligations and deferred tax provisions temper the score slightly, indicating some financial leverage and tax timing considerations that require monitoring.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Net Assets (Equity)	271,728	113,319	Strong increase (+139%) in net assets signals growing financial strength and retained earnings.
Share Capital	100	100	Nominal capital – typical for small private companies, not a concern.
Fixed Assets (Tangible)	236,905	206,959	Increase in fixed assets reflects investment in property, plant, and equipment – business growth.
Current Assets	357,932	182,828	Healthy increase, especially cash (+£78k) and debtors, indicating improved liquidity and sales.
Current Liabilities	186,444	172,018	Slight increase in short-term obligations; manageable given asset growth.
Net Current Assets	171,488	10,810	Significant improvement in working capital, a sign of healthy short-term liquidity ("cash flow pulse").
Long-term Liabilities	94,615	80,170	Moderate long-term obligations from finance leases; manageable but warrants attention.
Deferred Tax Provision	42,050	24,280	Increase in deferred tax suggests timing differences in taxable income recognition; routine.
Profit and Loss Reserve	271,628	113,219	Reflects accumulated profits retained in the business – strong growth in profitability.
Revenue (Turnover)	Not explicitly disclosed	N/A	Unable to assess revenue growth or margin trends due to lack of explicit turnover data.
Employees	5 (average)	6 (average)	Stable headcount consistent with a small professional dental practice.

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3. Diagnosis: What the Financial Data Reveals

Graceah Limited appears to be a young but growing dental practice with solid investment in tangible fixed assets (property improvements, plant, machinery, and vehicles). The company’s balance sheet shows a robust increase in net assets and retained earnings over the last year, indicating profitable operations and effective reinvestment.

The business exhibits a "healthy cash flow" symptom, demonstrated by a significant increase in cash reserves and net current assets. This healthy liquidity position reduces short-term solvency risks and supports operational flexibility.

The presence of finance lease obligations both in the short and long term points to some financial leverage, which is typical for asset-heavy businesses investing in equipment and property. While this leverage increases financial risk somewhat, it is balanced by growing equity and cash reserves.

The increase in deferred tax provision is a normal accounting "timing difference" symptom and does not indicate distress but should be monitored as it may impact future cash tax payments.

Overall, the company is free from overdue filings or compliance issues, reinforcing the view of a well-managed entity.

Potential Concerns:

• The relatively high finance lease liabilities require careful cash flow management to service debt obligations.
• Lack of explicit turnover/revenue data limits detailed profitability or margin analysis.
• Slight reduction in headcount may reflect operational adjustments or efficiency improvements.

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4. Recommendations to Improve Financial Wellness

1. Enhance Revenue Reporting:
   Provide detailed turnover and profitability data in future reports to enable better performance diagnostics and margin analysis.

2. Debt Management:
   Develop a clear plan to manage and possibly reduce finance lease obligations as cash flow permits, reducing financial risk and interest costs.

3. Cash Flow Monitoring:
   Maintain vigilant monitoring of cash flow, especially to cover lease payments and tax obligations, ensuring the "cash flow pulse" remains strong and consistent.

4. Asset Utilization Review:
   Periodically review fixed asset utilization to confirm investments are generating expected returns and not causing capital lock-up.

5. Tax Planning:
   Engage in proactive tax planning to manage deferred tax liabilities and optimise tax payments, improving net cash position.

6. Operational Efficiency:
   Evaluate staffing levels and operational costs to sustain profitability while maintaining service quality in the dental practice.

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