Company Number: 12646631

Analysis Date: 2025-07-29 16:18 UTC

Financial Health Assessment for NO PLASTIC LTD

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1. Financial Health Score: B

Explanation:
NO PLASTIC LTD demonstrates a solid financial position with positive net assets and net current assets, indicating healthy liquidity and solvency. However, the company is micro-sized with modest capital and limited historical data on profitability or cash flows. The lack of employees and minimal share capital suggest early-stage or low-scale operations, so while the financials show no distress symptoms, growth and operational resilience remain to be proven.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Current Assets	£16,220	Strong working capital position: current assets exceed short-term liabilities by a good margin.
Net Assets	£15,500	Positive equity indicates company is solvent – assets exceed liabilities.
Share Capital	£2	Very minimal capital invested, typical for micro-entities but limits financial buffer.
Average Employees	0	No staff employed suggests reliance on director or contractors; limited operational scale.
Filing Compliance	Up-to-date	No overdue filings, demonstrating good governance and regulatory compliance.
Company Status	Active	The company is operational and not in liquidation or distress.
Account Category	Micro	Limited filing requirements; financial detail is minimal but adequate for a micro entity.
Financial History	Positive trend	Net assets grew from £2 to £15,500 over recent years, signaling capital accumulation or retained earnings.

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3. Diagnosis

"Vital Signs" Analysis:
The company’s balance sheet shows a healthy liquidity profile with net current assets of £16,220, meaning it can comfortably cover its short-term obligations of £4,185. This suggests a stable cash flow position or at least the ability to meet immediate liabilities without stress.

The net assets of £15,500, which equate to shareholders’ funds, represent a positive equity base. Compared to previous years where net assets were negligible (£2 in 2023), this growth indicates some accumulation of retained earnings or capital injections, a positive symptom of financial health.

"Symptoms of Distress":
There are no apparent symptoms of financial distress such as negative working capital, overdue filings, or insolvency indicators. The company employs no staff, which could point to a very lean business model or early development phase, implying potential risks if workload or operations increase without additional resources.

The low share capital (£2) is typical but indicates limited initial invested funds, which can constrain growth or ability to absorb shocks. However, the company’s current asset levels suggest some cash or receivables present, providing operational liquidity.

Other Observations:
The company changed name recently (May 2025), which may reflect a strategic repositioning possibly towards broader or different services within the arts sector. The SIC codes indicate involvement in arts facilities and support to performing arts, a niche sector that can be sensitive to economic cycles and discretionary spending.

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4. Recommendations

To maintain and improve financial wellness, the company should consider the following:

• Strengthen Capital Base:
  Increase share capital or reinvest earnings to build a stronger equity cushion, improving resilience to unexpected expenses or investment needs.

• Enhance Revenue Streams:
  Explore expanding client base or service offerings to increase turnover and profitability, moving beyond micro-scale operations.

• Monitor Cash Flow Closely:
  Maintain healthy liquidity by managing receivables and payables efficiently. Given no employees, consider cost controls if scaling up.

• Prepare for Growth:
  If business activity increases, plan for hiring or outsourcing carefully to avoid operational bottlenecks.

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

• Consider Audited Accounts as Growth Occurs:
  Though currently exempt, an audit can enhance credibility with suppliers, customers, and lenders when scaling.

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