LOGIC FAST SNAX LIMITED

Executive Summary

LOGIC FAST SNAX LIMITED has shown a marked improvement in its financial health over the past year, turning negative net assets into a positive equity position and improving liquidity significantly. While still a small, modestly capitalized business, it is on a recovery path with a stable operational base. Continued focus on cash flow management and capital strengthening is recommended to secure its financial wellness going forward.

LOGIC FAST SNAX LIMITED - Analysis Report

Company Number: 13122175

Analysis Date: 2025-07-20 13:19 UTC

Financial Health Assessment: LOGIC FAST SNAX LIMITED (as of 31 January 2025)

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1. Financial Health Score: B

Explanation:
LOGIC FAST SNAX LIMITED demonstrates signs of financial recovery and strengthening, moving from negative net assets in 2024 to positive net assets in 2025. The company’s working capital position has improved significantly, indicating better short-term financial stability. However, low fixed asset values and modest equity relative to liabilities suggest the business is still in an early or recovery stage, requiring careful cash flow management to sustain growth and resilience.

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2. Key Vital Signs

Metric	2025 Value (£)	Interpretation
Net Assets (Shareholders’ Funds)	1,407	Positive net worth after previous year’s deficit; healthier equity base.
Net Current Assets (Working Capital)	1,003	Positive working capital; company can cover short-term debts comfortably.
Current Liabilities	1,985	Manageable short-term obligations given current assets.
Fixed Assets	1,154	Small asset base; likely limited investment in long-term assets.
Share Capital	4	Minimal capital invested; indicates small initial funding.
Employee Count	3	Stable workforce; manageable size for a micro business.

Interpretation:

• Net Assets: The company has reversed a prior negative equity position (-£415 in 2024) to positive £1,407 in 2025, a vital sign of improved financial stability and reduced insolvency risk.
• Working Capital: The shift from negative working capital in 2024 (-£152) to positive £1,003 in 2025 signifies healthier liquidity and ability to meet short-term obligations without stress. This is like a patient recovering from dehydration to good hydration levels.
• Current Liabilities: Though liabilities remain, they are well-covered by current assets, reducing the risk of cash flow crunch.
• Fixed Assets: The relatively small fixed asset base suggests limited investment in property or equipment, which is typical for micro-entities in the catering and hospitality sector focusing on operational agility rather than capital intensity.
• Share Capital: Minimal share capital indicates the company is primarily financed through retained earnings or external credit; this requires careful cash flow monitoring to avoid over-reliance on debt.

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3. Diagnosis

The financial "symptoms" of LOGIC FAST SNAX LIMITED reveal a company that has experienced previous distress, evident from negative net assets and working capital in 2024 and earlier years. However, the latest financial year shows clear signs of recovery and stabilization:

• Liquidity Improvement: Positive net current assets indicate the company can comfortably handle its short-term liabilities, a strong sign of "healthy cash flow."
• Equity Strengthening: Transition from negative to positive net assets shows the business has regained financial footing, reducing the risk of insolvency.
• Asset Utilization: The business operates with a modest fixed asset base, consistent with its micro-entity status and industry (licensed clubs, catering, take-away food). This implies a focus on operational efficiency rather than capital-heavy investments.
• Sustainable Workforce: Stable employee count suggests steady operations without sudden expansions or contractions, indicating operational consistency.

Overall, the company is in a recovery phase, moving from financial distress towards a more stable and sustainable position. The "symptoms" of past financial strain are abating, but vigilance is necessary to maintain this trajectory.

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4. Recommendations

To continue improving financial wellness and secure long-term viability, LOGIC FAST SNAX LIMITED should consider the following actions:

1. Maintain Positive Working Capital: Continue monitoring cash inflows and outflows closely to ensure liquidity remains strong, avoiding any "cash flow dehydration."
2. Build Capital Reserves: Explore ways to bolster share capital or retained earnings to create a financial buffer against unforeseen downturns or emergency expenses.
3. Control Costs: Keep operational expenses in check to preserve margins, especially given the modest asset base and potential vulnerability to market fluctuations in the catering and licensed club sectors.
4. Plan for Asset Investment: While fixed assets are minimal, consider strategic investments in equipment or facilities that could improve efficiency or revenue generation, but only after ensuring a strong cash base.
5. Regular Financial Reviews: Implement frequent financial health checks to detect early signs of distress and respond promptly, much like regular health check-ups to catch symptoms early.
6. Engage with Stakeholders: Maintain transparent communication with directors and any investors or lenders to manage expectations and access support if needed.

These steps will help the company sustain its recovery momentum and build resilience against future challenges.

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