OFFSIDE PROJECTS LTD

Executive Summary

OFFSIDE PROJECTS LTD shows strong early-stage financial health with robust working capital and growing equity, typical of a micro-entity in the advertising sector. While liquidity and profitability indicators are positive, attention should be paid to increasing provisions and preparing for operational scaling. With vigilant financial management and gradual capitalization, the company is well-positioned for sustainable growth.

OFFSIDE PROJECTS LTD - Analysis Report

Company Number: 13110296

Analysis Date: 2025-07-29 19:38 UTC

Financial Health Assessment Report for OFFSIDE PROJECTS LTD

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1. Financial Health Score: B

Explanation:
OFFSIDE PROJECTS LTD exhibits a solid financial footing for a micro-entity in the early stages of operation. The company shows healthy growth in current assets and shareholders’ funds over the last three years, with positive working capital and no sign of liquidity distress. Minor concerns include modest provisions for liabilities and relatively low capital, but these are typical for a small startup in the advertising agency sector. Overall, the company is financially stable but should monitor growth and liability management carefully.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	10,236	1,358	Significant increase, indicates growing cash and receivables – a positive sign of liquidity.
Current Liabilities	1,442	0	Small increase, manageable compared to assets.
Net Current Assets	8,794	1,358	Strong positive working capital, suggests good short-term financial health.
Shareholders’ Funds	6,697	822	Growth in equity indicates profitability and retained earnings accumulation.
Provisions for Liabilities	1,847	286	Increase requires monitoring; may indicate future obligations or risks.
Average Number of Employees	0	0	No employees reported; company likely relies on contractors or is in early development stage.
Share Capital	1.00	1.00	Minimal share capital; typical for micro entities.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Healthy Cash Flow and Liquidity: The sharp increase in current assets, especially cash or equivalents, combined with low and manageable current liabilities, signals a healthy cash flow position. The company is not experiencing symptoms of liquidity strain or short-term financial distress.

• Growth and Capitalization: The growing shareholders’ funds show the company is either generating profits or has received additional equity injections. This is a positive symptom indicating business viability and retention of earnings to support growth.

• Low Operational Scale: The absence of employees and the small scale of financial figures point to a micro-business operating likely on a project or consultancy basis. This can limit scalability but also reduces fixed costs and financial risk.

• Increasing Provisions: The rise in provisions for liabilities, although not alarming at this stage, should be watched carefully. It may indicate anticipated expenses or contingent liabilities that could impact future cash flow if not managed properly.

• No Audit Requirement: The accounts have been prepared under micro-entity exemptions with no audit performed. While this reduces compliance costs, it also means less external scrutiny of financial accuracy. Management should ensure robust internal controls.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Monitor Provisions Closely: Investigate the nature of the increased provisions to ensure they are justified and adequately covered by cash or liquid assets. Regular review will prevent unexpected financial shocks.

• Build Share Capital or Reserves: Consider strategies to increase equity or retained earnings, either through reinvesting profits or new share issuances, to strengthen the company’s capital base and support future growth.

• Plan for Staff and Growth: As business expands, consider hiring staff or formalizing contractor arrangements to support operational capacity. This will increase costs but is necessary for scaling.

• Maintain Rigorous Cash Flow Management: Continue to track receivables and payables carefully to maintain healthy working capital and avoid liquidity bottlenecks.

• Enhance Financial Reporting: Even though audit is not required, consider voluntary financial reviews or external advice to improve financial controls and reporting accuracy.

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