KERRY FOXGLOVE LIMITED

Executive Summary

KERRY FOXGLOVE LIMITED displays a strong financial foundation with ample liquidity and no immediate financial distress symptoms, appropriate for its first full year as a micro-entity. The company's balance sheet indicates solid capital and working capital health, positioning it well for stable operations and future growth. Continuing careful cash flow management and expanding governance oversight will support sustained financial wellness.

KERRY FOXGLOVE LIMITED - Analysis Report

Company Number: 14644991

Analysis Date: 2025-07-29 20:21 UTC

Financial Health Assessment for KERRY FOXGLOVE LIMITED

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1. Financial Health Score: A

Explanation:
The company shows a robust financial position for its first full accounting period. With strong net current assets and net assets substantially positive relative to liabilities, the company exhibits a "healthy pulse" on liquidity and solvency. The absence of overdue filings and clean director control also supports financial wellness.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	44,737	Moderate investment in long-term assets for operational use. Healthy foundation.
Current Assets	405,017	Strong short-term asset base indicating good liquidity ("healthy cash flow reserves").
Current Liabilities	45,810	Low short-term liabilities relative to assets, indicating low immediate financial pressure ("no signs of distress").
Net Current Assets (Working Capital)	359,207	Very strong working capital, allowing comfortable coverage of short-term obligations and operational needs.
Total Net Assets	403,944	Solid equity base showing the company is well-capitalized ("financially fit").
Shareholders’ Funds	403,944	Entirely composed of equity, no indication of debt burden.

Additional Context:

• Average employees: 4, consistent with a micro-entity classification and manageable operational scale.
• The company is classified as a micro-entity, subject to simplified accounting requirements, which aligns with its financial scale.
• Operating in the SIC 62090 category: ‘Other information technology service activities’, a sector that often requires upfront investment but can generate strong margins.
• No overdue filings, indicating good compliance and governance practices.
• Single director and majority controlling shareholder (75-100%) is typical for small start-ups, ensuring clear control but also concentration risk.

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3. Diagnosis: Overall Financial Condition Assessment

KERRY FOXGLOVE LIMITED is in excellent financial health for a start-up micro-entity at the end of its first financial year. The company exhibits strong liquidity and a solid capital base, with working capital sufficient to cover short-term liabilities many times over. This indicates no symptoms of financial distress such as cash flow shortages or excessive leverage.

The balance sheet reflects a company that has invested in fixed assets while maintaining a substantial cash or liquid asset buffer. The absence of debt suggests low financial risk, although a more detailed profit and loss analysis would be needed for a full operational profitability assessment.

The "healthy pulse" of current and net assets suggests that the company can meet its immediate obligations and has a stable foundation for growth. The company’s governance appears sound, with no compliance issues or red flags.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Maintain Cash Reserves: Continue prudent management of current assets to preserve liquidity and “healthy cash flow” status, especially important in early-stage businesses.
• Monitor Working Capital: As the company grows, keep a close eye on the ratio of current assets to current liabilities to avoid liquidity crunches.
• Plan for Growth Investment: Consider leveraging some equity or low-cost debt to finance growth opportunities, particularly in IT service activities which may require further asset investment or staffing.
• Governance and Risk Management: While single director control is common, consider appointing additional directors or advisors to diversify oversight and reduce governance risk.
• Profitability Tracking: Start implementing detailed profit and loss tracking to identify operational efficiencies, cost controls, and revenue streams as the company matures.
• Compliance Vigilance: Continue timely filings and statutory obligations to avoid penalties and preserve company reputation.

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