GRATITUDE WORLDWIDE LTD

Executive Summary

Gratitude Worldwide Ltd shows positive financial health with strong liquidity and steadily growing net assets, reflecting sound management and profitability. While current liabilities have risen, the company is well placed to meet these obligations and sustain growth. Careful cash flow management and strategic investment will support ongoing financial wellness and business expansion.

GRATITUDE WORLDWIDE LTD - Analysis Report

Company Number: SC710192

Analysis Date: 2025-07-29 16:06 UTC

Financial Health Assessment for Gratitude Worldwide Ltd as of 30 September 2024

---

1. Financial Health Score: B

Explanation:
Gratitude Worldwide Ltd demonstrates a solid financial footing with positive net assets and a strong working capital position. The company has been consistently growing its net assets and cash reserves over the past three years. However, the relatively high current liabilities, especially tax and social security obligations, signal some financial pressure that must be managed carefully. Hence, while the company’s financial health is good, it is not yet in the top tier of financial robustness.

---

2. Key Vital Signs

Metric	2024 Value	Interpretation
Cash at Bank	£33,409	Healthy cash reserves, increased from £17,247 in 2023, indicating improved liquidity.
Current Assets	£33,420	Almost entirely cash, showing strong liquid assets to cover short-term obligations.
Current Liabilities	£14,905	Increased from £8,426 in 2023, primarily due to tax and social security costs, indicating a growing short-term financial obligation.
Net Current Assets	£18,515	Positive working capital, showing the company can cover current debts comfortably.
Net Assets / Shareholder Funds	£23,872	Increased significantly from £12,361 in 2023, reflecting retained earnings and asset growth.
Tangible Fixed Assets	£5,357	Moderate investment in fixed assets, which may support business operations long-term.
Employee Count	1	Very small company, which aligns with the micro/small company profile.

---

3. Diagnosis: Financial Health Analysis

• Liquidity ("Healthy Cash Flow"): The company has a strong liquidity position, with cash making up nearly all current assets. This is a positive sign of "healthy cash flow," enabling the company to meet immediate obligations without stress.

• Working Capital ("Vital Signs Stable"): Net current assets have more than doubled since 2023, indicating a strong buffer to cover short-term debts. This stability suggests no imminent liquidity crises.

• Leverage and Liabilities ("Symptoms of Mild Financial Strain"): Current liabilities have risen significantly, mainly from increased taxation and social security costs. While this is common for a growing business, it requires careful cash flow management to avoid payment delays that could signal financial distress.

• Profitability and Retained Earnings ("Growing Strength"): The rise in net assets and shareholders’ funds reflects accumulated profits retained in the business, indicating ongoing profitability and prudent management.

• Asset Base ("Foundation for Growth"): The increase in tangible fixed assets suggests investment in operational capacity, which could support future revenue growth.

• Size and Scale: With only one employee and micro-company status, the business is small but appears to be growing steadily.

---

4. Recommendations

• Manage Current Liabilities: Monitor and plan for tax and social security payments carefully to avoid cash flow bottlenecks. Consider setting aside cash reserves specifically earmarked for these liabilities.

• Continue Building Profit Reserves: Maintain and grow retained earnings to strengthen the equity base and provide a cushion against unexpected downturns.

• Evaluate Fixed Asset Investments: Ensure that capital expenditure on tangible assets aligns with business growth projections and does not overextend financial resources.

• Cash Flow Forecasting: Implement regular cash flow forecasting to anticipate future obligations and avoid "symptoms" of distress such as late payments or overdrafts.

• Consider Growth Opportunities: With a strong liquidity position, explore opportunities to expand business activities or invest in marketing to increase turnover, while keeping a close eye on cost control.

• Compliance and Reporting: Continue timely filing of accounts and confirmation statements to maintain good standing and avoid penalties.

---