LIL JAMES - CROOK LIMITED

Executive Summary

LIL JAMES - CROOK LIMITED is a financially stable micro-entity exhibiting positive net assets and adequate liquidity for short-term obligations. The company's financial health shows no immediate distress, though working capital is tight, reflecting its early-stage status. Careful cash flow management and strategic growth planning will be key to maintaining and enhancing financial wellness as the business develops.

LIL JAMES - CROOK LIMITED - Analysis Report

Company Number: 14555145

Analysis Date: 2025-07-19 12:43 UTC

Financial Health Assessment for LIL JAMES - CROOK LIMITED
As of financial year ending 31 March 2024

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1. Financial Health Score: B

Explanation:
LIL JAMES - CROOK LIMITED is a micro-entity with a solid foundation in its first full financial year. The company shows a positive net asset position and net current assets indicating liquidity, but given its recent incorporation and limited size, the financial "vital signs" suggest a stable but early-stage health status. There is room for improvement in strengthening working capital and building operational resilience.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	5,300	Represents minimal long-term investments typical for a micro start-up; low capital intensity.
Current Assets	15,000	Healthy short-term asset base, mainly cash or receivables, supporting day-to-day operations.
Current Liabilities	12,883	Obligations due within a year; relatively close to current assets, so careful cash management needed.
Net Current Assets (Working Capital)	2,117	Positive but narrow working capital indicating limited buffer for short-term expenses.
Total Assets Less Current Liabilities	7,417	Shows overall net asset position after short-term liabilities.
Net Assets / Shareholders Funds	6,337	Equity base held by owners; positive net worth is a good sign for solvency.
Employee Count	1	Sole director/employee; minimal payroll obligations but limits operational capacity.

Interpretation:
The company exhibits "healthy cash flow" indicators with more current assets than current liabilities, albeit by a small margin. The positive net assets indicate no immediate solvency concerns. However, the small scale and narrow working capital margin suggest the company is in an early growth phase with limited financial cushion.

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3. Diagnosis

LIL JAMES - CROOK LIMITED appears to be financially stable with no "symptoms of distress" such as negative net assets or excessive short-term liabilities. The company’s balance sheet shows prudent management of resources, with a positive net current assets figure indicating it can meet its short-term obligations without liquidity crisis. The director holds full control, which may facilitate swift decision-making but also concentrates risk.

Given its recent incorporation in December 2022 and micro-entity status, the company is likely in a start-up or early operational phase. The absence of audit requirements and minimal fixed assets align with a low-complexity business model typical for management consultancy activities (SIC 70229).

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4. Recommendations

• Improve Working Capital: Although positive, the narrow net current assets margin suggests the company should carefully manage cash flow. Consider accelerating receivables collection and negotiating better payment terms with creditors.
• Build Cash Reserves: As a sole director and micro-entity, building a cash cushion will help weather unforeseen expenses or delays in client payments.
• Monitor Liabilities: Keep current liabilities under close review to avoid liquidity strain. Avoid accumulating payables that exceed current assets.
• Consider Growth Planning: With a single employee and minimal fixed assets, explore opportunities to scale operations sustainably by investing in marketing or tools that improve service delivery efficiency.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Risk Management: With full ownership held by one individual, ensure appropriate personal risk mitigation, such as insurance or limited personal guarantees.

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