LILYWHITE ACCOUNTING SOLUTIONS LIMITED

Executive Summary

LILYWHITE ACCOUNTING SOLUTIONS LIMITED demonstrates a strong and improving financial position with healthy liquidity and growing equity, typical of a well-managed micro-entity. The company is financially stable with sound working capital management but should consider strategic growth and governance enhancements to support scalability and mitigate concentration risk. Overall, the financial outlook is positive provided prudent practices continue.

LILYWHITE ACCOUNTING SOLUTIONS LIMITED - Analysis Report

Company Number: 13660703

Analysis Date: 2025-07-20 17:49 UTC

Financial Health Assessment for LILYWHITE ACCOUNTING SOLUTIONS LIMITED

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1. Financial Health Score: B+

Explanation:
LILYWHITE ACCOUNTING SOLUTIONS LIMITED exhibits a solid and improving financial position typical of a healthy micro-entity. The company has strong net current assets and growing shareholders' funds, indicating sound liquidity and equity base. However, as a micro company with limited fixed assets and a single director, the business is still in early growth stages with some inherent risks in scale and diversification. The score B+ reflects good financial wellness with room for further strengthening operational resilience.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Current Assets	87,063	Healthy cash, receivables and short-term assets have nearly doubled since last year, indicating improved liquidity.
Current Liabilities	39,350	Increased liabilities but well covered by current assets; no immediate liquidity concern.
Net Current Assets	49,049	Positive working capital, indicating the company can comfortably meet short-term obligations.
Fixed Assets	1,485	Very low long-term investment; typical for a micro accounting services firm.
Net Assets / Shareholders’ Funds	49,721	Almost doubled from prior year, demonstrating retained earnings growth and financial stability.
Share Capital	104	Minimal capital injection; growth largely from retained earnings.
Employee Count	1	Small workforce, typical for micro entity but limits operational scale.
Overdue Filings	No	Compliance with filing deadlines reflects good governance.

Additional Notes: The company is fully owned and controlled by one director, Mr Owen Kearney, which concentrates control but also allows agile decision-making.

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3. Diagnosis: Financial Health Overview

LILYWHITE ACCOUNTING SOLUTIONS LIMITED’s financial "vital signs" are strong for a micro-entity. The company shows "healthy cash flow" as evidenced by the significant increase in current assets, primarily cash or receivables, which supports operational activities and short-term obligations. The "symptoms of distress" such as overdue filings, negative working capital, or erosion of net assets are absent.

The near doubling of net assets and shareholders’ funds from approximately £24k to nearly £50k in one year signals effective retention of profits and prudent financial management. The low fixed assets base is consistent with an accounting services business that relies more on intellectual capital than physical assets.

The company's liquidity position is robust, with net current assets more than sufficient to cover current liabilities, indicating no imminent risk of cash shortfall. However, the reliance on a single director and employee might be a limiting factor for growth and operational scalability, representing a risk analogous to a single organ shouldering too much load in the body.

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4. Recommendations for Financial Wellness Improvement

• Build Operational Capacity: Consider scaling workforce prudently to diversify skills and reduce dependence on a single individual. This helps avoid "organizational fatigue" and supports growth.
• Enhance Fixed Asset Investment: While low fixed assets are typical, exploring investments in technology or systems could improve efficiency and competitive advantage.
• Maintain Working Capital Discipline: Continue prudent management of receivables and payables to preserve strong liquidity.
• Plan for Contingencies: Establish a modest financial reserve or access to a credit facility to buffer against unexpected downturns or delays in payment.
• Governance and Succession Planning: Given sole control by one director, formalizing governance policies and considering succession or delegation plans would strengthen long-term stability.
• Monitor Growth: As the company grows, monitor key ratios such as debtor days, creditor days, and profitability margins to detect early warning signs of financial strain.

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