NORTHSIDE VENTURES LIMITED

Executive Summary

NORTHSIDE VENTURES LIMITED demonstrates a financially stable position with positive net assets and strong liquidity, indicative of a healthy early-stage business. However, the small operational scale and modest asset base highlight opportunities to enhance growth and resilience. Strategic investments in workforce and assets, along with governance improvements, will support a stronger financial future.

NORTHSIDE VENTURES LIMITED - Analysis Report

Company Number: 14147961

Analysis Date: 2025-07-29 13:57 UTC

Financial Health Assessment Report for NORTHSIDE VENTURES LIMITED

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1. Financial Health Score: B

Explanation:
NORTHSIDE VENTURES LIMITED shows a solid balance sheet for a micro-entity in its early years, with positive net assets and no current liabilities, indicating financial stability and prudent management. However, the very modest scale of operations, low asset base, and limited financial history leave room for growth and a stronger financial foundation. Thus, the company earns a "B" grade — healthy but with growth and liquidity enhancement opportunities.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£5,000	Small base of long-term assets; manageable scale for a micro business.
Current Assets	£6,500	Healthy short-term assets relative to size; indicates available resources to meet obligations.
Current Liabilities	£0	No short-term debts; symptom of strong liquidity and low financial risk.
Net Current Assets	£6,500	Positive working capital — healthy cash flow potential and ability to cover short-term needs.
Total Net Assets	£12,500	Positive equity base; company is solvent with shareholder funds exceeding liabilities.
Shareholders Funds	£12,500	Reflects owners’ investment and retained profits; good foundation for future growth.
Employees	1	Very small workforce; typical for a micro-company but limits operational capacity.

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3. Diagnosis: What the Numbers Reveal

• Liquidity and Solvency: The company exhibits excellent liquidity with no current liabilities and net current assets of £6,500. This indicates a "healthy cash flow" status, able to meet short-term obligations comfortably — a key sign that the business is not under financial distress.

• Asset Base: Fixed assets of £5,000 suggest some investment in long-term resources, though modest. The low asset base is typical for a micro-entity but could limit scalability or collateral for financing.

• Growth Trajectory: Comparing 2023 to 2024, net assets grew from £1 to £12,500, signaling initial capitalization and possibly retained earnings or asset acquisitions. This "recovery from infancy" phase is promising but also underscores the early stage of the business life cycle.

• Shareholder Control: With a single majority shareholder controlling 75-100% and a second shareholder with 50-75%, governance appears concentrated. This can be efficient but may pose succession or governance risks.

• Operational Scale: The company employs only one person, indicating a lean operation. While this minimizes overhead, it may constrain revenue generation and limit business development capacity.

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4. Recommendations: Specific Actions to Enhance Financial Wellness

• Strengthen Liquidity Buffer: Maintain or increase current assets to ensure robustness against unforeseen expenses or downturns. Consider building a cash reserve.

• Diversify Asset Base: Explore opportunities to invest in fixed assets that can enhance operational capacity or generate income streams, supporting scalability.

• Expand Workforce Strategically: Consider hiring or contracting additional skilled personnel to support growth initiatives and reduce operational bottlenecks.

• Improve Financial Reporting: Although exempt from audit, consider implementing internal financial controls and periodic reviews to identify cost-saving and revenue-enhancing opportunities.

• Plan for Governance: With concentrated ownership and director changes, formalize governance policies to mitigate risks related to decision-making and continuity.

• Explore Revenue Growth: Given the SIC codes involving real estate and retail sectors, investigate market opportunities to increase turnover while controlling costs.

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