LOCKFIT (CONTRACTS) LTD

Executive Summary

LOCKFIT (CONTRACTS) LTD shows a robust financial position with strong liquidity and growing net assets, indicating good health for a micro-entity. The company’s balance sheet "vital signs" suggest it can comfortably meet short-term obligations while sustaining growth. Continued focus on profitability, working capital management, and prudent investment will support its positive financial prognosis.

LOCKFIT (CONTRACTS) LTD - Analysis Report

Company Number: 13157807

Analysis Date: 2025-07-20 13:51 UTC

Financial Health Assessment: LOCKFIT (CONTRACTS) LTD as of 31 January 2024

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1. Financial Health Score: B

Explanation:
LOCKFIT (CONTRACTS) LTD demonstrates a solid and improving financial position, particularly in liquidity and net assets, which indicates a generally healthy financial state. While the company is still relatively young and small (Micro-entity category) with limited fixed assets, its strong net current assets and doubling of net assets year-on-year show good financial resilience and growth potential. The absence of debt beyond current liabilities and no signs of distress supports this grade. However, as a micro-entity with modest capital, continued monitoring and development of profitability and asset base are recommended to sustain growth.

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2. Key Vital Signs

Metric	2024 Figure (£)	Interpretation
Fixed Assets	6,006	Small level of long-term investment; typical for a micro business focusing on service activities.
Current Assets	635,575	Strong current asset base, primarily cash or receivables, indicating good liquidity.
Current Liabilities	336,728	Moderate short-term obligations; manageable given asset base.
Net Current Assets	298,847	Healthy working capital buffer; company can comfortably meet short-term debts.
Net Assets (Shareholder Funds)	304,853	Positive and growing equity base, reflecting retained earnings or capital injections.
Employee Count	2	Small workforce consistent with micro-entity status and business scale.

Interpretation:

• Healthy cash flow "vital signs" are evident from strong current assets and positive net current assets, suggesting the company can cover short-term liabilities without strain.
• Growth symptom: Net assets have roughly doubled from £148k in 2023 to £305k in 2024, indicating retained profits or capital contributions strengthening the balance sheet.
• Stable workforce: Employee count remains stable, reflecting controlled operational scaling.

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3. Diagnosis

LOCKFIT (CONTRACTS) LTD presents as a financially stable and growing micro-entity. The company’s balance sheet reveals no symptoms of financial distress such as negative working capital or eroding equity. The current assets significantly exceed current liabilities, which is a positive "pulse" indicating liquidity strength.

The introduction of fixed assets in 2024 (£6,006) suggests investment in tools or equipment, a healthy sign of ongoing business development. The company’s consistent employee numbers and steady increase in net assets point toward sustainable operations and prudent financial management.

However, as a small entity, its limited capital base (£100 share capital) and relatively modest asset holdings mean it must maintain vigilance to avoid overextension. The lack of detailed profit and loss data limits insight into profitability trends, but the growth in equity is encouraging.

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4. Recommendations

To maintain and improve financial wellness, LOCKFIT (CONTRACTS) LTD should consider the following:

• Enhance Profitability Monitoring:
  Regularly review income and expenses to ensure profits are maintained or increased, which will strengthen reserves and equity further.

• Manage Working Capital Efficiently:
  Continue to optimize receivables and payables cycles to keep liquidity healthy and avoid cash flow bottlenecks.

• Invest Prudently in Fixed Assets:
  Capital expenditures should align with business growth and generate returns; avoid over-investment that could strain cash flow.

• Plan for Growth:
  Explore opportunities to expand service offerings or client base within security system activities (SIC 80200) and other service activities (SIC 96090), leveraging strong financial footing.

• Maintain Compliance and Timely Filings:
  Ensure all statutory accounts and confirmation statements are filed on time to avoid penalties and maintain good standing.

• Build Capital Buffer:
  Consider increasing share capital or retaining earnings to provide a stronger buffer against unforeseen financial shocks.

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