NICE CODE LTD

Executive Summary

NICE CODE LTD shows a strong financial position with solid liquidity and growing net assets, reflecting good financial health for a micro-entity software development business. Although current assets have decreased, the company maintains a comfortable margin to meet short-term obligations. Continued focus on cash management and strategic growth will support sustainable financial wellness.

NICE CODE LTD - Analysis Report

Company Number: SC684697

Analysis Date: 2025-07-20 15:40 UTC

Financial Health Assessment of NICE CODE LTD (Year ended 31 December 2023)

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1. Financial Health Score: B

NICE CODE LTD demonstrates a solid financial position with a healthy balance sheet and positive net assets growth, earning a 'B' grade. While the company shows strong liquidity and capital adequacy, some signs of cautious monitoring are advisable due to a recent decline in current assets. The company’s micro-entity status and low employee count indicate a lean operation, which is common in software development startups or small consultancies.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	2,644	Modest investment in long-term assets, slightly increased from prior years, indicates small scale capital expenditure.
Current Assets	13,249	Liquid resources such as cash or receivables; decreased from £20,885 in 2022, suggesting tighter short-term liquidity but still sufficient to cover liabilities.
Current Liabilities	1,289	Short-term debts due within one year; low relative to current assets, indicating good short-term solvency.
Net Current Assets (Working Capital)	11,960	Strong positive working capital, a sign of healthy operational liquidity.
Total Assets Less Current Liabilities	14,604	Reflects total asset base after deducting short-term debts; healthy and stable.
Net Assets / Shareholders’ Funds	14,604	Positive and rising equity base, a sign of retained earnings or capital injections improving company net worth.
Employee Count	1	Minimal staffing, consistent with micro-entity classification and controlled overhead costs.

Interpretation: The company’s liquidity (current assets vs current liabilities) remains comfortably positive, indicating a "healthy cash flow" symptom. The increase in fixed assets, though small, suggests some reinvestment in the business infrastructure or tools.

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3. Diagnosis

• Liquidity & Cash Flow: The company maintains a strong liquidity position with net current assets at £11,960, which is almost ten times the current liabilities. This is a clear sign that NICE CODE LTD can meet its short-term obligations without distress.

• Capital Structure & Solvency: The net assets have doubled from £7,307 in 2022 to £14,604 in 2023, demonstrating a significant strengthening of the company's equity base. This could be due to retained profits or capital contributions, reflecting a robust solvency position.

• Asset Management: Fixed assets have increased marginally, indicating some reinvestment or asset purchases, but still remain low in absolute terms, consistent with a lean software development business model.

• Operational Scale: The company operates with a single employee, indicating a small-scale, possibly founder-led business with low overheads but also potentially limited capacity for rapid growth without additional hires.

• Potential Concerns: The drop in current assets from £20,885 to £13,249 may warrant attention. It could indicate slower receivables collection, reduction in cash reserves, or scaled-back operations. However, this is not alarming given the still strong working capital.

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4. Recommendations

• Maintain Cash Reserves: Monitor cash flow closely to prevent liquidity tightening, especially given the decrease in current assets. Ensure timely collection of receivables and control of payables.

• Growth Investment: Consider strategic investment in technology or staff to support business growth, balancing fixed asset increases with cash reserves.

• Financial Controls: Continue robust financial record-keeping and compliance with filing deadlines (which are currently met) to avoid penalties and demonstrate financial discipline.

• Business Development: Explore opportunities to increase turnover and scale operations beyond one employee to diversify business risk and increase resilience.

• Regular Monitoring: Establish quarterly financial reviews to detect early symptoms of financial distress or cash flow issues, enabling timely corrective actions.

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Medical Analogy Summary

NICE CODE LTD exhibits "healthy cash flow" and "strong balance sheet vitality," similar to a patient with robust vital signs and stable health metrics. The slight dip in current assets acts like a mild symptom that requires monitoring but does not currently indicate critical distress. With proper management and cautious growth, the company’s financial prognosis is positive.

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