NOT NORMAL MOTORS LTD
Executive Summary
Not Normal Motors Ltd, a newly formed micro-entity in motor vehicle repair, shows a solid financial start with positive net assets and healthy liquidity. The company exhibits no signs of financial distress and complies well with filing obligations. To strengthen financial wellness, it should focus on controlled asset acquisition, cash flow management, and strategic growth planning.
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This analysis is opinion only and should not be interpreted as financial advice.
NOT NORMAL MOTORS LTD - Analysis Report
Financial Health Assessment: NOT NORMAL MOTORS LTD
1. Financial Health Score: B
Explanation:
The company, newly incorporated in January 2024, has demonstrated a solid start with positive net assets and shareholder funds of £8,121 as at 31 January 2025. There are no signs of financial distress such as negative equity or overdue filings. The score "B" reflects a generally healthy financial condition for a micro-entity, acknowledging the very early stage of its operations and limited size.
2. Key Vital Signs
Metric | Value (£) | Interpretation |
---|---|---|
Fixed Assets | 0 | No long-term assets yet; typical for a startup micro company. |
Current Assets | 1,179 | Cash or equivalents and receivables indicating liquidity. |
Current Liabilities | -6,943 | Negative number here suggests a presentation quirk – likely indicates net current assets rather than liabilities. Confirmed by net current assets figure. |
Net Current Assets | 8,121 | Positive working capital — a healthy cash buffer for day-to-day operations. |
Net Assets (Equity) | 8,121 | Positive net worth indicating assets exceed liabilities. |
Shareholders’ Funds | 8,121 | Reflects owner's equity, consistent with net assets. |
Additional Vital Signs:
- Company Status: Active, not in liquidation or administration — no signs of distress.
- Filing Status: All accounts and confirmation statement filed on time, indicating good regulatory compliance.
- Employee Count: 1 (director), consistent with micro-entity status.
- Industry: Motor vehicle maintenance and repair — a service-based business, likely low capital intensity.
- Control: Single owner/director with 75-100% shares and voting rights — centralized control.
3. Diagnosis: Financial Condition Overview
The financial "vital signs" suggest the company is in a "healthy" state for a startup micro-entity. Positive net current assets and net equity indicate that the company is not over-leveraged and has sufficient liquidity to meet short-term obligations, a critical indicator akin to a strong pulse in a patient.
The absence of fixed assets is typical at this early stage, likely due to leasing or outsourcing equipment rather than purchasing. The positive balance sheet signals that the company has been adequately funded by the owner or generated some initial income.
No overdue filings or legal issues (no liquidation or administration) are reassuring "symptoms" showing the company is compliant and not under regulatory or financial stress.
The director’s statement on going concern supports this diagnosis, highlighting growth expectations and the ability to manage business risks.
4. Recommendations to Improve Financial Wellness
- Build Fixed Assets Gradually: As operations grow, consider acquiring essential equipment to reduce dependency on third parties, improving operational control and potentially reducing costs.
- Monitor Cash Flow Carefully: Maintain a healthy liquidity buffer to absorb unexpected expenses or slow periods in the repair business.
- Diversify Income Streams: Explore additional services or partnerships to stabilize and increase revenue, reducing business risk.
- Maintain Regulatory Compliance: Continue timely filing of accounts and confirmation statements to avoid fines and maintain good standing.
- Plan for Growth: Develop a formal business plan with financial projections to attract potential investors or lenders if expansion is desired.
- Consider Insurance and Risk Management: As a motor repair business, ensure adequate insurance coverage to protect assets and manage liabilities.
- Record Keeping: Maintain detailed and accurate financial records to support decision-making and facilitate audit if necessary.
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