LIVE LANE TRAFFIC MANAGEMENT LIMITED

Executive Summary

LIVE LANE TRAFFIC MANAGEMENT LIMITED has demonstrated a significant financial recovery within its first two years, turning from negative equity to a strong positive net worth and healthy liquidity. The company’s investments in assets and positive working capital indicate solid operational growth and financial stability. With prudent financial management and continued focus on profitability, the company is well positioned for sustainable expansion.

LIVE LANE TRAFFIC MANAGEMENT LIMITED - Analysis Report

Company Number: 14310853

Analysis Date: 2025-07-29 20:33 UTC

Financial Health Assessment of LIVE LANE TRAFFIC MANAGEMENT LIMITED

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1. Financial Health Score: B

Explanation:
LIVE LANE TRAFFIC MANAGEMENT LIMITED shows a solid recovery and strengthening in its financial position over the latest year, moving from negative shareholders' funds to a positive and growing equity base. The company’s balance sheet and liquidity position have improved markedly, indicating good financial vitality despite being in a very early stage of business life (incorporated in 2022). The score B reflects a healthy but still developing financial status, with room to mature and strengthen further.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	35,332	Significant growth from prior years, showing investment in long-term resources (equipment, etc.).
Current Assets	98,801	Healthy cash and receivables base, up substantially, indicating improved liquidity.
Current Liabilities	60,561	Increased short-term obligations but well covered by current assets (working capital positive).
Net Current Assets	38,240	Positive working capital, a sign of good short-term financial health and ability to meet debts.
Shareholders Funds	69,072	Turned positive from negative, indicating accumulated profits or capital injections raising net worth.
Average Employees	2	Small micro business size, consistent with account category.
Company Status	Active	Operating normally with no signs of distress or insolvency.

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3. Diagnosis: Financial Health and Business Condition

• Balance Sheet Vitality: The company has shown a remarkable turnaround in equity from a negative £10,380 in 2023 to a positive £69,072 in 2024. This shift indicates either capital injections or profitable operations, a “healthy heartbeat” of the company’s financial system returning to strength.

• Liquidity and Working Capital: The current assets are nearly 1.63 times the current liabilities (98,801 / 60,561), signaling good liquidity and ability to cover short-term obligations—a crucial “breathing” indicator for operational sustainability. The positive net current assets imply the company is not under immediate financial stress.

• Asset Growth: Fixed assets have increased over sixfold, from £5,222 to £35,332 in one year, showing investment in operational capacity or infrastructure. This is a positive sign of business expansion and confidence in future revenue generation.

• Earnings and Profitability: While detailed profit and loss data is not provided, the improvement in shareholders’ funds suggests the company is either generating profits or receiving fresh capital. The absence of audit requirements and the micro-entity reporting indicate simplicity but also less detailed public financial disclosure.

• Company Size and Industry: As a micro-entity in the traffic management sector (SIC 52219), employing 2 people, the company is small and likely in early growth phases, which explains rapid asset and equity changes.

• Director and Control: The company is controlled significantly by one individual, Mr. Jason Paul Brown, who has stable involvement. No red flags such as director disqualifications or insolvency proceedings exist.

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4. Recommendations: Actions to Improve Financial Wellness

• Maintain Positive Cash Flow: Continue monitoring cash flow closely to ensure working capital remains positive. Healthy cash inflow is the lifeblood of a small company and critical for meeting obligations and funding growth.

• Build Profit Reserves: Focus on improving profitability and retaining earnings to build a buffer against future uncertainties—this will further strengthen the shareholders’ funds “immune system.”

• Manage Liabilities Prudently: While current liabilities have increased, ensure they are managed efficiently to avoid liquidity strain. Negotiate favorable credit terms if possible.

• Plan for Growth: Consider strategic investment in fixed assets carefully to ensure they generate returns. Avoid overextending financially, which can cause “symptoms of distress.”

• Regular Financial Reviews: Implement periodic financial health checks using key metrics like liquidity ratios, equity position, and cash flow forecasts to detect early warning signs.

• Compliance and Reporting: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with Companies House.

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