LIFEBOLD LIMITED

Executive Summary

LIFEBOLD LIMITED, a newly formed engineering consultancy, exhibits solid financial health with positive working capital and strong cash reserves relative to liabilities. While the company is in its early stage with modest assets and operations, its foundational financial metrics indicate stability and no signs of distress. Strategic focus on growing revenues and managing expenses will be crucial to build long-term financial wellness.

LIFEBOLD LIMITED - Analysis Report

Company Number: 15163292

Analysis Date: 2025-07-20 18:46 UTC

Financial Health Assessment of LIFEBOLD LIMITED

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1. Financial Health Score: B

Explanation:
LIFEBOLD LIMITED shows a solid start as a newly incorporated company with a positive net asset position and sufficient cash reserves relative to liabilities. The company demonstrates healthy liquidity and equity for its first financial period, indicating stable foundational financial health. However, the limited operating history and modest asset base suggest cautious optimism rather than a full "A" grade. Continued monitoring is advised as the business develops.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	13,824	Includes cash and debtors; good short-term resources available
Cash	13,478	Healthy cash position, vital for day-to-day operations and liquidity
Debtors	346	Low receivables indicating either limited sales or efficient collections
Current Liabilities	8,877	Debts due within one year; manageable relative to current assets
Net Current Assets (Working Capital)	4,947	Positive working capital signifies the company can cover short-term obligations comfortably
Net Assets (Equity)	5,613	Indicates financial stability and net worth of the company
Tangible Fixed Assets	666	Small investment in equipment, reflecting early-stage capital expenditure
Shareholders’ Funds	5,613	Equity invested by owner(s), showing full ownership control
Number of Employees	1	Sole director/employee; business likely in early development phase

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3. Diagnosis: Financial Condition

LIFEBOLD LIMITED is in its infancy, having been incorporated in September 2023 and filing its first accounts for the period ending September 2024. The financial "vital signs" reveal a healthy cash flow situation, with cash reserves well exceeding current liabilities, indicating no immediate liquidity distress. The positive working capital acts like a strong pulse, showing the business can meet its short-term financial obligations.

The modest tangible fixed assets and low debtor balances suggest the company may not yet be operating at full capacity or has a business model with limited credit sales. The equity base aligns with the capital invested by the sole controlling director, implying no external financing or debt burden.

The absence of audit requirements and the small company exemptions reflect low complexity and size, which is typical for a start-up or micro entity.

Symptoms of distress such as negative working capital, high debt ratios, or declining cash reserves are not present. However, the company's financial health is in the early stages and should be viewed as stable but nascent, requiring growth and operational scaling to strengthen its financial resilience further.

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4. Recommendations: Improving Financial Wellness

• Maintain Healthy Cash Flow: Continue to monitor cash reserves closely to ensure liquidity remains robust as operations scale. Avoid overextending credit to customers to maintain low receivables.

• Build Revenue Streams: Focus on increasing turnover and diversifying income sources to strengthen profitability and reduce reliance on initial capital.

• Control Costs: Keep operating expenses under control, especially as the company grows, to preserve net assets and working capital.

• Plan for Capital Growth: Consider incremental investment in fixed assets and human resources to support business expansion when justified by revenue growth.

• Financial Reporting: Even though audit exemption applies, maintain detailed internal financial controls and forecasting to anticipate cash flow needs and avoid surprises.

• Compliance and Governance: Ensure timely filing of accounts and confirmation statements to maintain good standing and avoid penalties.

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