NON SLIP SHOP LTD

Executive Summary

NON SLIP SHOP LTD exhibits a healthy financial condition with strong liquidity, growing net assets, and solid working capital. The company’s significant operating lease obligations and reliance on a single director highlight areas for cautious management and potential governance improvement. With focused action on lease management and debtor controls, the company is well positioned for sustainable financial wellness.

NON SLIP SHOP LTD - Analysis Report

Company Number: 12507825

Analysis Date: 2025-07-29 12:48 UTC

Financial Health Assessment Report for NON SLIP SHOP LTD

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1. Financial Health Score: B

Explanation:
NON SLIP SHOP LTD demonstrates solid financial health, with significant improvements in liquidity, working capital, and net assets over recent years. The company maintains a healthy cash position and positive net current assets, indicating good short-term financial stability. However, the company carries some lease commitments and dependency on debtors, requiring ongoing monitoring. Overall, the financial "pulse" is strong but with room for optimization and risk mitigation.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£373,029	Increased significantly, showing growth in liquid and short-term resources.
Cash Balance	£202,425	Strong cash "heartbeat," more than quadrupled from prior year, indicating excellent liquidity.
Debtors	£125,604	Healthy but slightly reduced from £174,929; efficient credit control needed to avoid cash delays.
Current Liabilities	£153,912	Increased but manageable relative to assets; short-term debts are well covered by assets.
Net Current Assets (Working Capital)	£219,117	Positive and increasing, indicating good short-term financial health and ability to meet obligations.
Net Assets (Equity)	£355,023	Strong and growing equity base, reflecting retained earnings and asset growth.
Tangible Fixed Assets	£135,906	Substantial investment in long-term assets; indicates capacity for ongoing operations and growth.
Operating Lease Commitments	£327,600	Significant future cash outflows; needs to be monitored as a potential financial strain.
Share Capital	£1	Minimal share capital, typical for small private companies; equity built from retained profits.
Employee Count	8 (average)	Growing workforce, correlates with business expansion.

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3. Diagnosis: Financial Condition and Underlying Health

The financial "vitals" of NON SLIP SHOP LTD paint the picture of a company with a strong liquidity "pulse," evidenced by a substantial increase in cash reserves and net current assets. This suggests the company has a healthy "blood flow" of funds to cover its immediate obligations and invest in growth.

The growth in net assets from £225k (2023) to £355k (2024) signals that the company is building a robust equity "immune system," strengthening its financial resilience. Tangible fixed assets have increased, indicating ongoing capital investment, which is a positive sign of business development and future productivity.

However, the sizeable operating lease commitments (over £327k) represent a "chronic condition" that requires careful management. These future obligations could pressure cash flows if not matched by corresponding revenue growth. The decrease in debtors is favorable, but the company should continue to carefully manage credit risk to avoid "symptoms" of cash flow strain.

The company's reliance on a single director/secretary and minimal share capital implies a lean governance structure typical of small private companies but could pose risks if the key individual is unavailable.

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4. Recommendations: Steps to Improve Financial Wellness

• Manage Operating Lease Commitments:
  The company should evaluate lease terms and consider negotiating more flexible arrangements or exploring alternative premises with lower fixed costs to reduce future cash flow pressure.

• Enhance Debtor Management:
  Implement stricter credit controls and timely collection processes to maintain or further reduce debtor days, ensuring cash flow remains healthy.

• Build Cash Reserves:
  Continue to maintain or grow the strong cash buffer to safeguard against unexpected expenses or downturns, especially given lease commitments.

• Diversify Governance:
  Consider appointing additional directors or officers to strengthen management capacity and reduce key-person risk.

• Capital Structure Review:
  Though equity is solid, the company might explore opportunities for external funding or share capital increases if planning expansion, to avoid over-reliance on retained earnings.

• Monitor Profitability:
  Since profit and loss details are not disclosed, ensure that underlying operations are profitable or at least cash flow positive to sustain asset growth and obligations.

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