LAW 2419 LIMITED

Executive Summary

LAW 2419 LIMITED exhibits excellent financial health characterized by strong liquidity, solid equity, and prudent risk provisions. The company is financially robust with a substantial asset base and minimal liabilities, positioning it well for stability. To ensure continued wellness, maintaining liquidity, reviewing provisions, and strategically expanding operations are recommended.

LAW 2419 LIMITED - Analysis Report

Company Number: 13192911

Analysis Date: 2025-07-29 16:59 UTC

Financial Health Assessment: LAW 2419 LIMITED as of 29 February 2024

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1. Financial Health Score: A-

Explanation:
LAW 2419 LIMITED demonstrates a robust financial position with strong liquidity, healthy net assets, and steady growth in equity. The company maintains a high level of liquid assets relative to liabilities, indicating excellent short-term financial stability. The only minor point of caution is the relatively small scale of operations (single employee), suggesting limited operational scale but not financial weakness.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£361,890	Healthy level of short-term assets, mainly cash, providing strong liquidity.
Cash at Bank	£359,550	Very strong cash position, indicating excellent liquidity and ability to cover immediate expenses.
Debtors	£2,340	Very low receivables, implies low credit risk or minimal sales on credit.
Current Liabilities	£8,915	Very low short-term debt, manageable and comfortably covered by current assets.
Net Current Assets	£352,975	Positive working capital, suggesting good short-term financial health ("healthy cash flow").
Total Assets Less Current Liabilities	£6,550,711	Indicates substantial fixed or long-term assets, likely investments or financial assets.
Provisions for Liabilities	£364,670	Moderate provisions reflect anticipated future obligations; should be monitored.
Net Assets / Shareholders Funds	£6,186,041	Strong equity base, showing retained earnings and capital have grown steadily over time.
Share Capital	£4,736,626	Significant capital invested, reflecting strong shareholder support.
Retained Earnings	£1,449,415	Accumulated profits retained in the business, indicating profitability over time.
Employee Count	1	Micro operation scale; financial health not reliant on large workforce.

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3. Diagnosis: Financial Health Overview

LAW 2419 LIMITED is akin to a patient with a strong cardiovascular system: the "pulse" of liquidity is vigorous, with cash readily available to meet obligations, and a "healthy blood pressure" represented by low liabilities. The balance sheet resembles a well-maintained heart with a solid muscle mass — substantial net assets primarily composed of financial investments valued at fair market rates.

The "symptoms" show no signs of distress: no overdue filings, no significant debt burden, and consistent equity growth. The company operates on a small scale but is financially sound, with investments appreciating in value (fair value adjustments of £344,551 in the year). The presence of provisions indicates prudent risk management, recognizing potential liabilities without overstressing the balance sheet.

Operationally, the single employee count means the business is lean; however, this may also limit revenue diversification or growth potential, which is a consideration for long-term sustainability.

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4. Recommendations: Enhancing Financial Wellness

• Maintain Strong Liquidity: Continue to monitor cash flows closely to sustain the excellent liquidity position. Avoid unnecessary short-term borrowings.

• Review Provisions Regularly: Assess the basis and adequacy of provisions for liabilities to ensure they reflect realistic future obligations, avoiding surprises.

• Diversify Operational Capacity: Consider expanding the team or outsourcing to increase operational capacity and revenue streams, reducing over-dependence on single-employee operations.

• Investment Portfolio Review: Given the significant financial assets, conduct periodic reviews of investment valuations and risks to optimize returns and reduce potential losses.

• Strategic Growth Planning: Explore strategic plans for growth or diversification, leveraging the strong capital base, to improve long-term resilience and market presence.

• Compliance Vigilance: Keep filing accounts and confirmation statements timely to avoid penalties and maintain regulatory health.

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