LOWEN DAYS LIMITED

Executive Summary

Lowen Days Limited demonstrates a solid financial position with healthy liquidity, growing equity, and stable management. The company’s financial health is rated a strong B, reflecting good short-term financial resilience and equity growth. Maintaining vigilant cash and credit management will be key to sustaining this healthy trajectory as the business develops.

LOWEN DAYS LIMITED - Analysis Report

Company Number: 13481468

Analysis Date: 2025-07-29 18:12 UTC

Financial Health Assessment of LOWEN DAYS LIMITED

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1. Financial Health Score: B

Explanation:
Lowen Days Limited shows solid financial resilience with growing net current assets and shareholders’ funds over the latest financial years. The company maintains a healthy cash balance relative to its current liabilities, indicating good liquidity. While the business is still relatively young (incorporated in 2021), the steady improvement in working capital and net assets suggests positive financial management and operational stability. The absence of audit requirements (due to size) means there is less external scrutiny; however, the financial statements appear consistent and credible.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	55,301	28,235	Nearly doubled, showing improved ability to cover short-term obligations.
Cash at Bank	46,358	21,458	Strong cash position, essential for operational flexibility.
Debtors	8,943	6,777	Moderate increase; manageable level of receivables.
Current Liabilities	20,121	15,055	Increased but well covered by current assets.
Net Current Assets	35,180	13,180	Healthy working capital growth, indicating good short-term financial health.
Total Assets Less Current Liabilities	49,500	27,500	Net assets nearly doubled; positive equity growth.
Shareholders Funds	49,500	27,500	Equity base strengthening; reflects retained earnings accumulation.
Employee Count	2	2	Small team; low overhead risk but capacity limitations.

Additional Observations:

• Fixed asset investments remain constant at £14,320, indicating stable investment holdings.
• The company operates in the business support services sector (SIC 82990), which usually requires strong cash flow and receivables management.
• No audit requirement due to small company exemption; accounts are unaudited but prepared by a reputable accounting firm.

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3. Diagnosis: Financial Health Overview

The company exhibits symptoms of good financial health, including:

• Healthy cash flow "pulse": Cash reserves have more than doubled in the latest year, providing a strong buffer against unforeseen expenses or delays in receivables.
• Robust working capital: Net current assets have significantly improved, indicating the firm can meet short-term obligations comfortably without liquidity stress.
• Equity growth: Shareholders’ funds have nearly doubled, evidencing retained profits or capital injections that strengthen the balance sheet.
• Stable investment base: Fixed assets remain steady, suggesting no aggressive expansion or asset impairment.
• Consistent management: The directors are the ultimate controlling parties and have been stable since incorporation, which can be a sign of consistent strategic oversight.

Potential areas for monitoring include:

• The increase in creditors should be watched to ensure no build-up of overdue payables that could signal cash flow tightness.
• Debtors have increased but remain at a manageable level; continued focus on credit control will help maintain liquidity.
• Given the small team size, operational risks may arise from capacity constraints or over-reliance on key personnel.

Overall, the financial "vital signs" indicate a company that is currently well-positioned and stable, with no immediate "symptoms of distress."

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4. Recommendations to Improve Financial Wellness

• Maintain strong cash management: Continue to monitor and manage cash flows carefully to sustain liquidity and operational flexibility. Avoid tying up excessive funds in slow-moving debtors or inventory.
• Strengthen credit control procedures: Ensure timely collection of debts to prevent cash flow blockages, especially as the debtor balance grows.
• Monitor supplier payments: Keep a close eye on creditor days to avoid liquidity strain or supplier relationship damage.
• Plan for growth cautiously: The company has a solid financial foundation; consider investing in incremental growth or operational improvements without overstretching resources.
• Review fixed asset utilization: Regularly assess whether the current investment holdings are contributing effectively to business operations or if reallocation of capital could enhance returns.
• Prepare for scalability: With only two employees, the company should plan for potential expansion carefully, balancing increased capacity with financial prudence.

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