INTERCIRCLE LTD

Executive Summary

INTERCIRCLE LTD shows encouraging signs of financial stability with positive working capital and growing equity, typical for a micro-entity in its early years. While the company maintains a healthy liquidity position, strengthening its equity and managing long-term debt will be crucial for sustained growth and financial resilience. Continued compliance and strategic planning will help the business capitalize on its solid foundational health.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

INTERCIRCLE LTD - Analysis Report

Company Number: 13108922

Analysis Date: 2025-07-20 13:11 UTC

Financial Health Assessment Report for INTERCIRCLE LTD


1. Financial Health Score: B

Explanation:
INTERCIRCLE LTD demonstrates stable and improving financial metrics typical of a healthy micro-entity. The company maintains positive net current assets (working capital), indicating a "healthy cash flow" position without immediate liquidity distress. However, the relatively low net assets and small shareholder funds suggest limited financial cushion and capital base, common in early-stage or micro-sized enterprises. The absence of audit requirements and minimal employees further aligns with its micro-entity status, but this also limits the depth of financial insight. Overall, the company shows sound financial footing but with room for strengthening equity and longer-term asset stability.


2. Key Vital Signs

Metric 2024 Value (£) Interpretation
Current Assets 112,472 Represents cash, receivables, and short-term assets; increased by ~29% from prior year, positive sign.
Current Liabilities 57,801 Short-term debts; increased, but proportionally less than current assets, manageable.
Net Current Assets (Working Capital) 54,671 Positive and growing, indicating the company can cover its short-term obligations comfortably.
Total Assets Less Current Liabilities 54,671 Reflects total net assets excluding long-term liabilities; stable with slight improvement.
Creditors Due After One Year (Long-Term Liabilities) 50,000 Long-term debt remains constant; moderate leverage for a micro-company but manageable.
Net Assets (Equity) 4,335 Equity base grew from £597 to £4,335; still low but improving, indicating retained earnings or capital injections.
Share Capital 100 Minimal share capital typical of micro companies; shows limited initial investment.
Employee Count 1 Sole director/employee, indicating a very small operational scale.

3. Diagnosis: Financial Health Overview

  • Liquidity & Cash Flow: The company exhibits a "healthy cash flow" symptom with a positive and increasing net current assets position. This means INTERCIRCLE LTD can comfortably meet its short-term liabilities, a vital sign of operational stability.

  • Leverage & Capital Structure: The presence of consistent long-term creditors (£50,000) indicates some debt financing. While this leverage is moderate relative to current assets, the low net equity suggests the company relies significantly on debt versus shareholder funds, a symptom to monitor for long-term solvency.

  • Equity Growth: The net assets and shareholders' funds grew from £597 to £4,335 over the last year. This "strengthening pulse" suggests either retained profits or new capital contributions, improving the company’s financial resilience.

  • Operational Scale: The company operates at micro scale with a single director-employee, implying limited operational complexity but also potential vulnerability due to concentration of responsibilities.

  • Compliance & Governance: Accounts are filed on time, and the company benefits from micro-entity reporting exemptions, reflecting compliance and minimal financial distress symptoms.


4. Recommendations: Path to Improved Financial Wellness

  • Build Equity Base: Consider increasing shareholder capital or retaining more earnings to build a stronger equity cushion. This "financial immunity" reduces reliance on debt and improves creditworthiness.

  • Monitor Debt Levels: Although current debt levels are manageable, maintaining or reducing long-term liabilities will enhance financial stability and reduce risk of distress symptoms.

  • Cash Flow Management: Continue to monitor receivables and payables closely to sustain positive working capital and avoid liquidity squeeze.

  • Diversify Operational Roles: Given the single-employee setup, explore opportunities to delegate or outsource administrative and compliance tasks to reduce operational risk.

  • Prepare for Growth: As the business matures, consider upgrading financial reporting or seeking audit to enhance transparency and attract investors or lenders.

  • Strategic Planning: Use the stable financial base to explore growth opportunities in the IT services sector (SIC 62090), leveraging the company’s current operational strengths.



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