NEWAGILE LTD

Executive Summary

NEWAGILE LTD shows a solid financial foundation with improving liquidity and equity, reflecting healthy growth and operational stability for a micro-entity. While the company is financially sound with no immediate distress symptoms, careful management of working capital and strategic planning will be key to sustaining and enhancing financial wellness.

NEWAGILE LTD - Analysis Report

Company Number: 13608245

Analysis Date: 2025-07-20 14:57 UTC

Financial Health Assessment Report for NEWAGILE LTD

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1. Financial Health Score: B

Explanation:
NEWAGILE LTD demonstrates a solid financial foundation with positive net assets and growing working capital. The company shows clear signs of financial stability and modest growth within its micro-entity scale. However, due to its small size and limited financial complexity, some vulnerabilities remain, especially regarding scale and limited reserves, preventing an A grade at this stage.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	66,364	Healthy increase, indicating improved liquidity and resource availability
Current Liabilities	45,269	Manageable short-term obligations, rising but proportionate to assets
Net Current Assets	21,095	Positive working capital ("healthy cash flow") suggests good ability to cover short-term debts
Net Assets (Shareholders' Funds)	20,255	Solid equity base indicating positive retained earnings and financial buffer
Staff Numbers	2	Small team consistent with micro-entity status; operational scale is limited
Account Category	Micro	Simplified reporting but also limited financial transparency and scale
Overdue Filings	No	Compliance with statutory filing deadlines reflects good governance

Interpretation of Vital Signs:
The increase in current assets by over 50% from the previous year, alongside a proportional rise in current liabilities, reflects growth in business operations and possibly sales. The positive net current assets indicate the company can comfortably meet its immediate financial obligations. The growth in net assets from approximately £4,876 in 2023 to £20,255 in 2024 is a very positive "symptom" showing retained profits or capital injection, contributing to financial resilience.

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3. Diagnosis

Overall Financial Condition:
NEWAGILE LTD is exhibiting strong "vital signs" for a micro-entity. The company is financially solvent with positive working capital and growing equity, indicating it is not under immediate financial distress. The balance sheet shows a healthy cash-like position with sufficient resources to cover liabilities, akin to a patient whose vital signs indicate stable cardiovascular and respiratory function.

Symptoms Analysis:

• The steady increase in current assets and equity suggests the business is expanding or improving its operational efficiency.
• The consistent small workforce aligns with the company’s size and business model, suggesting controlled overheads.
• No overdue filings or compliance issues indicate good administrative health, reducing regulatory risks.

Potential Concerns:

• As a micro-entity, financial disclosures are limited, so some financial "symptoms" such as profitability, cash flow from operations, or debt structure cannot be fully assessed.
• Growth rate, while positive, needs monitoring to ensure the company can sustain increased liabilities or operational scale without liquidity strain.

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4. Recommendations

• Maintain and Monitor Working Capital: Continue to manage receivables and payables carefully to ensure the "healthy cash flow" remains stable or improves.
• Build Financial Reserves: Aim to increase retained earnings or shareholder funds to create a buffer against unforeseen downturns or expenses.
• Expand Financial Reporting: Consider enhanced reporting beyond micro-entity standards if growth continues, to provide better insights for management and potential investors.
• Operational Efficiency: With only two employees, ensure workload and operational capacity are not overstretched, which could affect sustainability.
• Strategic Growth Planning: Use the strong balance sheet foundation to explore controlled expansion opportunities, such as new markets or product lines, aligned with the company’s industry (retail sales outside traditional stores).
• Regular Compliance Checks: Continue timely filings and governance best practices to avoid penalties and maintain credibility.

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