LO PRESTI LTD

Executive Summary

LO PRESTI LTD demonstrates a stable financial condition typical of a newly formed micro-entity with positive working capital and net assets. The company shows no signs of financial distress and maintains good administrative compliance. As the business grows, focusing on revenue generation and cash reserve building will be key to sustaining and improving financial wellness.

LO PRESTI LTD - Analysis Report

Company Number: SC796429

Analysis Date: 2025-07-20 11:51 UTC

Financial Health Assessment for LO PRESTI LTD (as of 31 January 2025)

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1. Financial Health Score: B (Good)

Explanation:
LO PRESTI LTD exhibits solid foundational financial health for a newly incorporated micro-entity. The company maintains positive net current assets (working capital) and positive net assets, indicating a stable balance sheet with no immediate liquidity concerns. However, the scale of operations is minimal with modest asset levels and no employees, which is typical given the company's recent establishment (January 2024) and micro-entity status. The financial "pulse" is steady but still early in development, warranting cautious optimism.

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2. Key Vital Signs (Core Financial Metrics & Interpretation):

Metric	Value (£)	Interpretation
Fixed Assets	175	Very low level of long-term assets; typical for a service-oriented micro-entity.
Current Assets	931	Positive short-term assets, mainly cash or receivables, indicating available liquidity.
Current Liabilities	820	Obligations due within one year; manageable given current assets.
Net Current Assets (Working Capital)	111	Positive working capital shows the company can cover short-term debts, a sign of liquidity.
Total Assets less Current Liabilities	286	Reflects company’s net asset value after short-term obligations; positive and stable.
Net Assets / Shareholders’ Funds	286	Indicates owners' equity in the business; positive and consistent with net assets.
Number of Employees	0	No employees yet; typical for a start-up phase or consultancy business model.

Industry Context:
The company operates in professional and management consultancy services (SIC: 74909, 70229), which tend to have low capital intensity and rely heavily on intellectual capital rather than fixed assets.

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3. Diagnosis (What the Financial Data Reveals About Business Health):

• Liquidity: The company shows a healthy "cash flow pulse" with positive net current assets. It has sufficient short-term assets to meet immediate liabilities, indicating no signs of financial distress or cash crunch.
• Solvency: Positive net assets demonstrate the business is solvent with shareholders’ funds exceeding liabilities. This "healthy balance sheet" suggests the company is not over-leveraged.
• Scale & Maturity: The micro-entity is in its infancy (less than 1 year of operation). The absence of employees and minimal fixed assets suggest it is currently a small-scale consultancy operation, likely owner-operated by Dr Gaetano Lo Presti.
• Control & Governance: The sole director and majority shareholder is Dr Gaetano Lo Presti, ensuring clear decision-making authority but concentration of control which is typical for start-ups.
• Operational Status: The company is active, compliant with filing deadlines, and not in any distress proceedings. No overdue filings suggest good administrative health.

Symptoms of distress such as overdue liabilities, negative working capital, or audit qualifications are absent.

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4. Recommendations (Specific Actions to Improve Financial Wellness):

• Build Cash Reserves: As the company grows, increasing liquid reserves will buffer against operational fluctuations and support investment in growth opportunities.
• Revenue Generation & Profitability: Focus on expanding client base and revenue streams to generate sustainable profits which can build retained earnings and strengthen reserves.
• Cost Management: Continue to manage expenses tightly to maintain positive working capital and avoid cash flow strain.
• Planning for Growth: Consider hiring staff or subcontractors strategically as business volume increases to scale operations without overextending financially.
• Governance & Compliance: Maintain timely filings and consider appointing a company secretary or additional directors if governance complexity grows.
• Financial Reporting: Although exempt from audit, prepare regular management accounts to monitor financial "vitals" and make informed decisions.

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