N4 ARCHITECTURE LTD

Executive Summary

N4 ARCHITECTURE LTD displays a stable and solvent financial position typical of a micro-entity architectural firm. With positive working capital and net assets, the company maintains a healthy liquidity position but shows limited growth in financial resources. Strategic efforts to enhance revenue, reinvest in assets, and build financial buffers will support future scalability and resilience.

N4 ARCHITECTURE LTD - Analysis Report

Company Number: 13801944

Analysis Date: 2025-07-29 19:13 UTC

Financial Health Assessment for N4 ARCHITECTURE LTD

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1. Financial Health Score: B

Explanation:
N4 ARCHITECTURE LTD shows a stable and solvent financial position with positive net assets and working capital over the last three years. The company maintains a modest but healthy balance sheet consistent with a micro-entity in the architectural sector. However, the relatively small asset base and limited growth in net assets suggest room for improvement in scaling operations and strengthening financial buffers.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Fixed Assets	£1,633	Small investment in long-term assets; typical for service-oriented micro-company.
Current Assets	£21,991	Healthy level of liquid resources, mainly cash and receivables, supporting day-to-day operations.
Current Liabilities	£9,042	Short-term obligations are manageable relative to current assets.
Net Current Assets (Working Capital)	£12,949	Positive working capital indicates the company can comfortably cover short-term debts ("healthy cash flow").
Net Assets (Shareholders’ Funds)	£14,583	Positive equity shows the company is solvent, with assets exceeding liabilities.
Employee Count	1	Sole employee suggests a lean operation, consistent with early-stage or owner-managed business.

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

• Solvency & Liquidity: The company is solvent with net assets of £14,583 and positive working capital of £12,949 in 2023. This indicates a "healthy heart" of the business with sufficient liquidity to meet short-term obligations without distress.

• Stability: Over three years, net assets have remained relatively stable (~£14,500), showing the business is maintaining its capital base but not yet generating significant retained earnings or growth.

• Asset Management: Fixed assets have decreased from £3,265 in 2022 to £1,633 in 2023, which may indicate asset disposal or depreciation outpacing reinvestment. This is not unusual for a micro business but should be monitored.

• Scale & Growth Potential: With only one employee and modest financials, the company is in a startup or early growth phase. The lack of rapid asset or equity growth may be a symptom of limited market penetration or cautious financial management.

• Governance & Control: Full control rests with one director and shareholder, Miss Claudia Rosa-Cervello, allowing agile decision-making but also placing all operational and financial responsibility on a single individual.

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4. Recommendations: Actions to Improve Financial Wellness

• Enhance Revenue Streams: Explore opportunities to increase projects, diversify services, or engage in partnerships to boost turnover and build reserves.

• Strengthen Asset Base: Consider reinvesting profits into tools, technology, or intellectual property that can increase productivity or competitive advantage.

• Cash Flow Monitoring: Continue maintaining positive working capital. Implement regular cash flow forecasts to anticipate any liquidity crunches, especially if expanding.

• Build Financial Buffers: Aim to increase retained earnings over time to provide a cushion against market fluctuations or unexpected expenses.

• Governance Best Practices: Even as a single-person operation, consider periodic external advice or mentorship to introduce checks and balances and strategic planning.

• Prepare for Scaling: As the business grows, plan for potential hiring, administrative support, and possibly upgrading from micro to small company accounting frameworks for better transparency and funding access.

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