INFRASPACE LTD

Executive Summary

INFRASPACE LTD is a very early-stage micro-entity with minimal financial activity and a small loss in its first 13 months. The company currently shows no financial distress but lacks working capital and asset base, reflecting startup conditions. Focused efforts on revenue growth, cost control, and cash flow management are essential to transition from fragile startup to a financially healthy business.

INFRASPACE LTD - Analysis Report

Company Number: 14581638

Analysis Date: 2025-07-29 19:53 UTC

Financial Health Assessment: INFRASPACE LTD (as of 31 January 2024)

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1. Financial Health Score: D

Explanation:
Given the company's very recent incorporation (January 2023) and micro-entity status, the financial data shows extremely limited activity with a very low turnover (£3,329) and a small loss (£1,250). The absence of assets, liabilities, and working capital reflects a startup in its nascent phase rather than an established business. While no immediate signs of financial distress appear, the zero-net-asset position and operating loss indicate early-stage challenges. This places the company in a cautious "D" grade category, signaling need for careful monitoring and development.

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2. Key Vital Signs and Interpretation

Metric	Value (£)	Interpretation
Turnover (Revenue)	3,329	Very low revenue; typical for a startup or early-stage business just commencing operations.
Cost of Materials	(4,579)	Costs exceed revenue, contributing to an operating loss, indicating initial investment phase or low margin activity.
Profit / (Loss) for Period	(1,250)	Operating loss; common in startup phase but requires attention to achieve profitability.
Fixed Assets	0	No long-term assets, suggesting minimal capital investment or asset acquisition to date.
Current Assets	0	No cash, receivables, or stock reported; implies limited liquidity or that financial transactions are minimal.
Current Liabilities	0	No short-term debts or payables reported, which is positive in terms of no immediate financial obligations.
Net Current Assets	0	Neutral working capital; no buffer for short-term liquidity needs.
Net Assets / Shareholders' Funds	0	No equity base; company is at break-even on balance sheet but has absorbed losses from operations.
Employees	0	No employees; likely reliant on owner or outsourced resources, reducing fixed overheads.

Summary of Vital Signs:
The company shows the "vital signs" of a startup with minimal operational scale and no significant financial resources or liabilities. The "symptoms" are mild operating loss and lack of working capital, which is not unusual at this stage but must be addressed for sustainability.

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3. Diagnosis: Financial Condition Overview

INFRASPACE LTD is in an early-stage startup phase with limited trading history and minimal financial activity. The lack of tangible assets and working capital combined with a modest operating loss signals the company is still establishing its market presence and operational footing.

• The absence of cash or receivables may indicate that initial sales are low and that working capital management will be critical going forward.
• The operating loss, although small, suggests the company is investing resources (e.g., materials) without yet achieving corresponding revenue scale.
• The zero employee count reduces fixed costs but may also limit capacity for growth and service delivery.
• No liabilities is a positive sign, implying no immediate financial distress or creditor pressure.

The company is essentially in a fragile but stable condition, where the primary risk is inability to scale revenue and manage cash flow efficiently before additional capital or profits become available.

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4. Recommendations: Steps to Improve Financial Wellness

1. Cash Flow Management:
   Establish a clear cash flow forecast to ensure the company has sufficient liquidity to cover ongoing expenses and support growth initiatives. Consider opening a dedicated business bank account if not already done.

2. Revenue Growth Focus:
   Develop and execute a focused sales and marketing plan to increase turnover beyond the current minimal level. This is critical to move from startup loss into sustainable profitability.

3. Cost Control:
   Monitor and optimise cost of materials and other expenses to improve gross margin. Negotiate better supplier terms or seek alternative cost-efficient inputs.

4. Capital Planning:
   Consider whether additional equity investment or external financing is needed to support working capital and business expansion.

5. Operational Capacity:
   Assess the need for hiring or outsourcing to scale operations and increase capacity without disproportionate fixed costs.

6. Financial Reporting and Monitoring:
   Maintain timely and accurate accounting records and review monthly financial statements to detect early warning signs of distress.

7. Strategic Planning:
   Develop a business plan outlining growth targets, market positioning, and financial milestones to guide management decisions and attract investors.

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Medical Analogy Summary

INFRASPACE LTD's financial "vital signs" resemble those of a newborn: fragile, limited reserves, and a small operating loss akin to the "symptoms" of early adjustment. While no critical distress is evident, the company requires careful nurturing through cash flow management and growth stimulation to build a "healthy financial constitution" capable of sustaining and expanding operations.

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