Company Number: 13227960

Analysis Date: 2025-07-29 13:54 UTC

Financial Health Assessment for LAST INTERIOR DESIGN LTD

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1. Financial Health Score: B

Explanation:
The company shows a strong improvement in its financial position over the last two years, particularly evident in increased net current assets and shareholders' funds. Its liquidity and solvency have strengthened, indicating generally healthy financial "vital signs." However, as a micro-entity with limited data on profitability and cash flow, the assessment is cautiously optimistic, warranting a "B" grade rather than an "A."

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Fixed Assets	6,181	Modest investment in long-term assets—typical for micro firms.
Current Assets	177,031	Healthy level of liquid and near-liquid assets, primarily cash or receivables.
Current Liabilities	109,632	Short-term debts; the increase reflects growing operations but requires monitoring.
Net Current Assets	67,399	Strong positive working capital, indicating the company can comfortably cover short-term obligations.
Total Assets less Current Liabilities	73,580	Reflects overall solvency; company’s assets exceed liabilities by a significant margin.
Shareholders’ Funds	73,580	Equity capital and retained earnings have increased substantially, signaling retained profits or capital injection.
Average Number of Employees	3	Small workforce consistent with micro-entity status.

Interpretation:

• Liquidity ("Healthy Cash Flow"): The firm’s current assets exceed current liabilities by a wide margin, which is like a good pulse and steady heartbeat—indicating the company can meet its short-term debts without stress.
• Solvency ("Strong Bones"): Shareholders' funds have increased nearly ninefold from £8,670 in 2023 to £73,580 in 2024, showing strong financial "bones" or foundation, enhancing the company's ability to absorb shocks.
• Growth ("Rising Vitality"): The expansion of assets and equity points to growth and healthy business development, akin to a patient showing strong recovery signs.

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3. Diagnosis

Overall Financial Condition:
Last Interior Design Ltd exhibits clear signs of financial health and improving stability. The company’s liquidity position has improved markedly, with net current assets jumping from £4,004 in 2023 to £67,399 in 2024, signaling robust short-term financial resilience. The substantial increase in shareholders' funds suggests either retained earnings or capital contributions, both positive indicators of financial strength.

Symptoms of Strength:

• Increasing working capital means the company is not over-leveraged in the short term.
• Positive net assets and shareholders’ funds reflect sound solvency with no immediate distress signals.
• The company remains active, compliant with filings, and growing its asset base, which indicates ongoing business viability.

No Signs of Financial Distress:

• No overdue filings or late accounts.
• No indication of insolvency or financial strain.
• Small but growing workforce aligns with business expansion.

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4. Recommendations

To further enhance financial wellness and sustain growth, the company should consider:

1. Cash Flow Management:

   • Continue monitoring cash inflows and outflows to maintain healthy liquidity. Increasing current liabilities warrants careful management to avoid short-term strain.

2. Profitability Tracking:

   • Although balance sheet strength is evident, obtaining and analyzing profit & loss statements will provide fuller insight into operational efficiency and profitability trends.

3. Asset Utilization:

   • Evaluate fixed assets for productivity and return on investment, ensuring they contribute effectively to business growth.

4. Capital Structure Review:

   • Consider if further capital injections or external financing are needed to support expansion plans, ensuring the company maintains a balanced debt-to-equity ratio.

5. Strategic Planning:

   • Leverage current financial strength to invest in marketing, innovation, or new projects in the specialised design sector to enhance competitive positioning.

6. Risk Management:

   • Keep an eye on short-term liabilities growth and potential market risks, ensuring that the company maintains a "healthy heart" by avoiding overextension.

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