NUMERICAL STUDIO LTD

Executive Summary

NUMERICAL STUDIO LTD is a newly formed micro-entity with very modest revenue but a positive net profit, showing no immediate financial distress. However, its lack of assets and low turnover indicate a fragile financial position characteristic of a start-up in its infancy. Strategic efforts to grow revenue, build cash reserves, and manage costs will be essential to improve its financial health and resilience.

NUMERICAL STUDIO LTD - Analysis Report

Company Number: 15054991

Analysis Date: 2025-07-20 12:42 UTC

Financial Health Assessment of NUMERICAL STUDIO LTD

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1. Financial Health Score: C

Explanation:
Given the company's micro-entity status with minimal financial activity but a positive net profit, the score reflects a start-up in its infancy with potential but limited current financial strength or cushion. The "C" grade acknowledges the absence of distress symptoms but highlights that the company is still in a fragile stage requiring careful nurturing.

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2. Key Vital Signs

Metric	Value	Interpretation
Turnover	£7,411	Very low revenue reflecting early-stage or limited trading activity.
Profit for Period	£49	Positive but marginal profit indicating basic cost control but limited scale or margins.
Staff Costs	£6,185	Largest expense; likely reflects the director’s remuneration or minimal staffing.
Other Charges	£1,161	Operating expenses are low, consistent with small-scale operations.
Net Assets / Shareholder Funds	£0	Neutral net asset position; no accumulated reserves or equity buffer.
Current Assets & Liabilities	£0	No working capital buffer; suggests minimal cash or receivables on hand.
Number of Employees	1	Sole director/operator; no broader workforce.

Vital Signs Interpretation:

• The company exhibits a "stable but fragile" financial pulse with a very modest revenue stream and minimal profit.
• Zero net assets indicate no retained equity or accumulated reserves, meaning the company has no financial "padding" to absorb shocks.
• Absence of current assets or liabilities implies very limited operational scale and no working capital concerns yet.
• Staff costs dominate expenses, which is typical for a micro-business where the owner is the primary resource.

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3. Diagnosis: Overall Financial Condition Assessment

NUMERICAL STUDIO LTD is a nascent micro-entity that has just begun trading since incorporation in August 2023. The financial "vital signs" show a company with a minimal but positive profit margin, no financial distress, and very limited operational scale. The absence of assets and liabilities reflects early stage setup rather than distress—there are no symptoms of cash flow problems or insolvency risks currently.

However, the zero net asset base and minimal turnover signify the company is in a vulnerable state with no financial "reserves" to support growth or absorb unforeseen expenses. The business depends heavily on the single director’s efforts, underscoring a lack of diversification in personnel and potentially expertise. The current financial statements show no audit requirement or complex obligations, consistent with micro-entity simplifications.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Increase Revenue Streams: Focus on growing turnover beyond the current nominal level to build a more robust income base. Explore marketing or sales initiatives aligned with educational support services (SIC 85600).
• Build Cash Reserves: Although current assets are zero, building cash or receivables will provide a financial buffer to manage operational fluctuations and invest in business development.
• Control Costs Carefully: Staff costs are the major expense; as the company grows, monitor and manage personnel costs to maintain profitability. Consider whether outsourcing or part-time support could improve efficiency.
• Consider Capital Injection: If possible, the director or investors could increase share capital or inject funds to improve net asset position and working capital.
• Plan for Scaling: Develop a strategic plan for scaling operations, including potential recruitment, service diversification, or partnerships to reduce risk concentration on a single individual.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain a healthy compliance record.
• Monitor Financial Metrics: Track key metrics such as gross margin, net profit margin, and working capital regularly to detect early signs of financial distress or opportunity.

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Medical Analogy Summary:

NUMERICAL STUDIO LTD currently presents with a "healthy pulse" but is in the "infant stage" of its financial life. It shows no symptoms of distress such as debt or losses, but the absence of reserves and minimal scale is like a patient with low immunity—vulnerable and needing careful nurturing to build strength. Without growth and financial cushioning, the company risks faltering if unexpected challenges arise.

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