LEVEL UP CARE LIMITED

Executive Summary

LEVEL UP CARE LIMITED is a newly established small business with a solvent balance sheet but limited cash reserves and operational scale. The company is financially stable but vulnerable to cash flow fluctuations due to its reliance on receivables and minimal liquidity. Strengthening cash management and expanding operational capacity will be critical for sustainable growth and financial resilience.

LEVEL UP CARE LIMITED - Analysis Report

Company Number: SC769065

Analysis Date: 2025-07-20 17:38 UTC

Financial Health Assessment for LEVEL UP CARE LIMITED

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1. Financial Health Score: C

Explanation:
The company is newly formed (incorporated May 2023) and currently shows modest but positive net assets (£3,872) with no liabilities reported. While this represents a stable start, the financial scale is minimal and the company operates with just one employee. The absence of audit and abridged accounts is typical for a small startup but limits visibility into profitability and cash flow. Overall, the company appears solvent but is in an embryonic stage, requiring growth and stronger financial indicators to improve its health rating.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Age	1 year	Very young company; financial history is limited.
Net Assets (Shareholders’ Funds)	£3,872	Positive net worth indicates solvency but very small capital base.
Current Assets	£3,872	Entirely current assets, indicating liquid resources.
Cash at Bank	£782	Low cash reserves may present liquidity risk; cash is “heart blood” of daily operations.
Debtors (Receivables)	£3,090	Majority of current assets tied in receivables; risk of delayed payments affecting cash flow.
Net Current Assets (Working Capital)	£3,872	Positive working capital (“healthy circulation”) but small absolute amount.
Number of Employees	1	Small operational scale; potential vulnerability to single-person risk.
Account Category	Unaudited Abridged	Limited financial detail available; typical for micro businesses but restricts full diagnostics.

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3. Diagnosis

LEVEL UP CARE LIMITED shows the symptoms of a micro-startup in early developmental stage:

• Positive equity and net current assets indicate no immediate distress and a solvent balance sheet — akin to a patient with stable vital signs but limited strength.
• Low cash on hand (only £782) suggests the company has limited liquidity buffer; this is a potential symptom of “cash flow fragility” which could impede operational flexibility.
• High proportion of current assets tied up in debtors means that the company’s cash flow health depends heavily on timely collection of receivables. Any delay here risks “circulatory blockage” (cash crunch).
• The single director and sole employee structure illustrates a lean operation but also poses “single point of failure” risk, impacting continuity and resilience.
• The unaudited abridged accounts restrict the ability to assess profitability, cost structure, and longer-term viability.
• No reported liabilities or overdrafts means the company is not overburdened with debt, a positive sign of “no chronic illness” in financial terms.

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4. Recommendations

To enhance financial wellness and build a robust foundation, the company should consider:

• Improve Liquidity Management:
  Boost cash reserves to create a buffer against unexpected expenses or payment delays. Consider negotiating faster payment terms with customers or exploring short-term funding options.

• Accelerate Debtor Collections:
  Tighten credit control processes to reduce days sales outstanding (DSO). Prompt collection will improve cash flow and reduce risk of receivables becoming bad debts.

• Expand Operational Capacity:
  As business grows, consider hiring additional staff or outsourcing key functions to reduce dependency on a single individual and improve scalability.

• Prepare for Future Audits:
  As turnover and size increase, prepare to transition from abridged to full audited accounts to enhance transparency and stakeholder confidence.

• Strategic Financial Planning:
  Develop a detailed budget and cash flow forecast to monitor financial health regularly and identify early symptoms of distress.

• Explore Revenue Growth Opportunities:
  Focus on marketing, customer acquisition, and service diversification to increase turnover and build a stronger financial base.

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