KORACLE LTD

Executive Summary

KORACLE LTD exhibits a robust financial position with strong liquidity and growing equity, indicating a healthy business foundation typical of a small but steadily progressing company. While the current financial health is sound, attention to strategic scaling and governance will be crucial to sustain and improve financial wellness as the company grows.

KORACLE LTD - Analysis Report

Company Number: 13840711

Analysis Date: 2025-07-19 12:26 UTC

Financial Health Assessment for KORACLE LTD

---

1. Financial Health Score: B

Explanation:
KORACLE LTD demonstrates solid growth in net assets and net current assets with a strong working capital position. The company’s balance sheet shows improving financial strength with increasing shareholders’ funds and controlled liabilities. However, as a micro-entity with a small team and limited fixed assets, the company is still in an early growth phase, so some caution is warranted for future scalability and liquidity under stress.

---

2. Key Vital Signs (Critical Metrics & Interpretation):

Metric	2024 Value	Interpretation
Fixed Assets	£4,024	Small but increasing; typical for service-focused micro company.
Current Assets	£215,861	Healthy short-term resources, including cash and receivables.
Current Liabilities	£41,189	Manageable short-term obligations, significantly reduced from prior year.
Net Current Assets	£174,672	Very healthy working capital position, indicating strong liquidity.
Net Assets (Shareholders Funds)	£176,802	Solid equity base, increased by ~62% from previous year, signaling retained earnings or capital injections.
Employee Count	2	Small team, consistent with micro-entity status.

Additional Notes:

• Current liabilities have decreased from £66,731 in 2023 to £41,189 in 2024, which is a positive sign of improved liabilities management.
• Accruals and deferred income are minimal, indicating no significant hidden obligations.
• The company benefits from no overdue filings and appears compliant with statutory requirements.

---

3. Diagnosis: What the Financial Data Reveals About Business Health

KORACLE LTD’s financial "vital signs" suggest a generally healthy and stable financial condition, akin to a patient recovering steadily with no immediate signs of distress. The company has a strong liquidity position, as evidenced by its high net current assets and a low current liabilities burden. This "healthy cash flow" ensures the company can meet short-term debts comfortably, reducing the risk of cash crunch.

The growth in net assets and shareholders’ funds indicates profitable operations or capital injections, reflecting a positive business trajectory. The small fixed asset base is typical for a service-oriented environmental consulting firm, where intellectual capital and expertise are likely the main assets.

However, the small size and limited employee base imply some vulnerability to external shocks or increased demand without adequate scaling strategies. The company’s dependence on key individuals (notably the director with significant control) could pose governance risks if not managed carefully.

---

4. Recommendations: Specific Actions to Improve Financial Wellness

• Maintain Strong Working Capital Controls: Continue to monitor receivables and payables closely to sustain the healthy liquidity position and avoid any "symptoms of distress" like delayed payments or cash shortages.

• Plan for Growth and Scaling: Develop a strategic plan to increase fixed assets or invest in technology and staff gradually to support business growth without overextending financially.

• Diversify Key Person Risk: Consider expanding the management team or formalizing succession plans to reduce dependency on a single director, improving governance and business continuity.

• Enhance Profitability Transparency: Although exempt from audit, consider preparing a detailed profit and loss statement for internal use to better diagnose profit margins and operational efficiencies.

• Keep Compliance Rigid: Stay vigilant with timely filings and regulatory compliance to avoid penalties or reputational risk which could present "warning signs" of financial or operational stress.

---