NEMETON SERVICES LTD

Executive Summary

NEMETON SERVICES LTD exhibits a solid financial foundation typical of a young, micro-entity IT consultancy. The company maintains healthy liquidity and positive equity, with no signs of distress or compliance issues. Continued focus on cash flow management and strategic growth planning will be key to sustaining financial wellness as the business matures.

NEMETON SERVICES LTD - Analysis Report

Company Number: 14528153

Analysis Date: 2025-07-29 12:59 UTC

Financial Health Assessment of NEMETON SERVICES LTD

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1. Financial Health Score: B

Explanation:
NEMETON SERVICES LTD demonstrates a solid financial foundation for a micro-entity in its first full year of operation. The company’s balance sheet reflects healthy net current assets and positive shareholder funds with no signs of distress or liquidity issues. However, as a newly incorporated business with minimal fixed assets and limited financial history, it has yet to establish a track record of profitability and cash flow robustness that would merit a top grade.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Age	~1 year	Very young company; early stage of financial lifecycle
Account Category	Micro	Minimal filing requirements; simple financial structure
Fixed Assets	£2,898	Modest investment in long-term resources; typical for start-up
Current Assets	£68,308	Healthy short-term resources, likely including cash and receivables
Current Liabilities	£28,712	Debts due within one year; manageable compared to assets
Net Current Assets	£39,596	Positive working capital; indicates liquidity to cover short-term obligations
Total Net Assets	£42,494	Positive equity base; company is solvent
Shareholders’ Funds	£42,494	Fully funded by owner’s equity; no reported debt beyond current liabilities
Employees	1	Very small scale of operations
Industry	IT Consultancy (SIC 62020)	Sector generally benefits from high margins and scalability

Interpretation:
The company’s "vital signs" suggest a financially stable start-up with no apparent liquidity shortages or excessive leverage. The net current assets (working capital) are comfortably positive, meaning the business can meet its short-term debts — a sign of "healthy cash flow" potential. Fixed assets are minimal, indicating the business is likely service-based and asset-light, typical for IT consultancy.

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3. Diagnosis

NEMETON SERVICES LTD is in a "stable and early growth phase" financially. The balance sheet reveals no symptoms of financial distress such as negative working capital or accumulated losses. The equity position is positive and entirely funded by the shareholder, Mr. Philip Arnold, showing strong owner commitment and control. The company’s micro status and single employee indicate a lean operation, which reduces overhead but also implies limited capacity for large-scale revenue generation in the short term.

The lack of audit requirements and simplified accounts is standard for a micro entity and does not raise concerns. No overdue filings or compliance issues are noted, which is a positive sign of good governance.

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4. Recommendations

To strengthen financial wellness and support sustainable growth, the following actions are advisable:

• Build Cash Reserves: Continue to maintain or increase liquidity buffers to manage unforeseen expenses or cash flow fluctuations, ensuring ongoing "healthy cash flow."

• Monitor Working Capital: Regularly review current assets and liabilities to avoid any emerging liquidity "symptoms" such as stretched payables or delayed receivables.

• Develop Profitability Metrics: As the company grows, track profit margins and net income to detect any early signs of financial stress or opportunity.

• Invest Strategically: Consider incremental investment in fixed assets or technology tools that can enhance service delivery efficiency without overextending financial resources.

• Plan for Growth: Develop a financial forecast and budget to guide expansion, including hiring plans if scaling beyond one employee.

• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain regulatory health.

• Leverage Industry Strengths: Capitalize on the scalable and high-margin nature of IT consultancy to diversify client base and revenue streams.

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