NEWTON GROVE PHASE 2 LIMITED

Executive Summary

NEWTON GROVE PHASE 2 LIMITED currently shows no financial activity or operational assets, reflecting a dormant or non-trading state. Its financial health is weak, with zero net assets and no employees, indicating no active business metabolism. To improve, the company must initiate operations, inject capital, and develop a clear strategy to transition into an active, financially healthy enterprise.

NEWTON GROVE PHASE 2 LIMITED - Analysis Report

Company Number: 13195744

Analysis Date: 2025-07-19 12:57 UTC

Financial Health Assessment for NEWTON GROVE PHASE 2 LIMITED

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1. Financial Health Score: D

Explanation:
The company’s financial statements reveal a near-zero asset base, no equity, and no recorded liabilities or income-generating activity. While there is no overt distress, the financial position is effectively stagnant with no operational activity, reflecting poor financial vitality. This score indicates a company that is not currently demonstrating signs of healthy financial functioning or growth potential.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	0	No investment in long-term resources or capital assets.
Current Assets	39	Minimal liquid assets, essentially negligible cash or equivalents.
Current Liabilities	39	Equal to current assets, indicating no net working capital.
Net Current Assets	0	Zero working capital, indicating no buffer for short-term obligations.
Total Net Assets	0	No net worth or shareholder equity, indicating no retained earnings or capital.
Shareholders Funds	0	Zero equity backing, meaning owners have not invested capital or retained earnings.
Employees	0	No staff employed, indicating no business operations underway.

Interpretation of Vital Signs:

• The absence of fixed assets and virtually no current assets signify no active operational base or investments.
• Matching current assets and liabilities cancel out any working capital, suggesting no financial "reserves" for day-to-day activities.
• Zero net assets and shareholder funds point to a balance sheet with no financial substance or retained profit, typical of an inactive or non-trading entity.
• No employees further reinforce the lack of business activity.

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3. Diagnosis

Symptoms Analysis:
The financial "vitals" show symptoms of dormancy or early-stage setup without business activity. The company has no assets, no liabilities, no equity, and no staff. This suggests the company is not currently trading or generating revenue, essentially in a financial coma. The balance sheet is flatlined at zero, indicating a lack of both financial inputs and outputs.

Underlying Business Health:

• The company is structured as a private limited company limited by guarantee with no share capital, a structure common for non-profit or non-trading organizations.
• Controlled by a single entity (Greyread Limited) with complete voting rights and director appointment power.
• The company’s SIC code places it in real estate management on a fee basis, but the absence of financial activity suggests it is not yet operational or is dormant.
• The micro-entity classification and lack of filings with turnovers or profits confirm minimal or no commercial activity.

Overall, the company is in a financially inert state with no active business operations or financial transactions, akin to a patient in remission or preparation but not yet engaged in active metabolic processes.

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4. Recommendations

To improve financial wellness and activate healthy financial flow, the company should consider:

• Initiate Business Activity: Begin trading or operational activities aligned with its real estate management mandate to generate cash inflows. Without revenue, the company remains financially inert.
• Capital Injection or Asset Acquisition: Introduce capital or acquire assets to build a financial foundation. This will strengthen the balance sheet and provide operational capacity.
• Monitor Cash Flow: Ensure positive cash flow management to avoid liquidity crunches—currently, with zero net current assets, any expense could cause distress.
• Review Corporate Structure and Purpose: Confirm the company’s purpose aligns with its structure as a guarantee company without share capital; if a commercial enterprise is intended, consider restructuring for equity investment.
• Engage Directors in Strategic Planning: With a diverse board including financial and management expertise, develop a clear operational plan and financial forecasts to move from dormancy to active status.
• Compliance and Reporting: Continue timely filing of accounts and confirmation statements to maintain good standing and avoid penalties.

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