NESA LLP

Executive Summary

NESA LLP is financially stable with positive net current assets and good liquidity, indicating the business can meet its short-term obligations comfortably. The company’s financial statements show no immediate signs of distress, but lack of detailed profit data limits full operational insight. To enhance financial wellness, the LLP should increase transparency, monitor cash flow carefully, and consider strategic growth investments.

NESA LLP - Analysis Report

Company Number: OC439389

Analysis Date: 2025-07-20 19:05 UTC

Financial Health Assessment for NESA LLP (Year Ended 31 March 2025)

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1. Financial Health Score: B

Explanation:
NESA LLP demonstrates a relatively healthy financial position for a young limited liability partnership with steady net current assets and no overdue filings. The balance sheet shows positive net current assets and no troubling liabilities beyond modest creditors. However, the absence of profit and loss details and limited employee growth suggest cautious optimism rather than robust financial vigor. The score B reflects a stable, solvent position with room for improvement in operational transparency and growth indicators.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets (Cash)	13,534	Healthy cash balance for immediate operational needs; indicates liquidity strength
Current Liabilities (Creditors)	(2,380)	Low short-term obligations; manageable working capital requirements
Net Current Assets	11,154	Positive working capital; good "cash flow pulse" ensuring day-to-day obligations can be met
Members' Capital (Equity)	1,000	Minimal capital injection, typical for a small LLP; suggests lean initial funding
Other Reserves (Equity)	10,154	Accumulated profits or reserves; indicates retained earnings accumulation over operating period
Employees	3 (average)	Small team size; stable headcount but no growth, which may reflect cautious operational scaling
Filing Status	Up to date	No overdue returns or accounts; good compliance "vital signs"

Interpretation of Vital Signs:
The LLP shows a "healthy cash flow" with cash exceeding short-term liabilities by a good margin, indicating it is currently solvent and able to meet immediate obligations. The consistent net current assets and accumulated reserves suggest operational profitability or at least positive retained earnings, though the absence of a profit and loss statement limits deeper insight. The small employee base reflects a micro/small scale operation, which is sustainable but may limit growth potential.

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3. Diagnosis

NESA LLP is in stable financial health with no immediate symptoms of distress such as liquidity crunch, excessive debt, or delayed statutory filings. The balance sheet shows a positive net asset position driven by cash and retained reserves, suggesting the business is financially solvent and capable of continuing as a going concern.

However, the lack of detailed profit and loss information ("Members' Report" and P&L omitted) is a symptom that masks the full picture of operational efficiency and profitability trends. The steady but small workforce and minimal capital injection point to a business in early or steady state rather than aggressive expansion.

In medical analogy terms, NESA LLP's financial "vital signs" show no acute distress or chronic illness but resemble a patient under routine monitoring rather than active rehabilitation or growth therapy.

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4. Recommendations

1. Increase Financial Transparency:

   • Include profit and loss accounts in future filings even if not mandatory. This will provide stakeholders a clearer view of operational health and profitability trends, akin to regular blood tests for ongoing health monitoring.

2. Monitor Cash Flow and Working Capital:

   • Maintain or improve cash reserves relative to short-term liabilities to keep liquidity strong. Consider forecasting cash flow for potential growth or unexpected downturns.

3. Invest in Growth and Operational Scalability:

   • Explore opportunities to expand the customer base or service offerings to increase turnover and profitability. This may involve hiring additional staff or investing in marketing or technology.

4. Maintain Compliance and Governance:

   • Continue timely filing of accounts and confirmation statements to avoid penalties and demonstrate robust governance.

5. Consider Capital Strategy:

   • Evaluate the need for additional capital injection or external financing to support growth initiatives, ensuring the business does not become "undercapitalized" as it scales.

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