OUT THERE ENVIRONMENTS LTD

Executive Summary

OUT THERE ENVIRONMENTS LTD exhibits strong financial health characterized by robust liquidity, growing equity, and responsible management of liabilities. The company maintains healthy working capital and has cleared director loans, signaling financial stability. To sustain and enhance this condition, focused attention on fixed asset investment and growth planning is advised.

OUT THERE ENVIRONMENTS LTD - Analysis Report

Company Number: 13323679

Analysis Date: 2025-07-20 17:18 UTC

Financial Health Assessment: OUT THERE ENVIRONMENTS LTD

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1. Financial Health Score: B

Explanation:
The company shows a sound and improving financial position with strong net current assets and net assets growth over recent years. However, as a micro-entity with limited fixed assets and a small scale of operations (1 employee), there is some dependency on a thin asset base and director advances. The absence of audit and relatively small shareholder capital suggest prudent but cautious financial health.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Fixed Assets	2,635	Modest investment in long-term assets; asset base shrunk from prior years, indicating possible disposals or amortisation.
Current Assets	26,045	Healthy increase, mainly cash/debtors, showing improved liquidity.
Current Liabilities	3,540	Slight increase but manageable given asset growth.
Net Current Assets	22,505	Strong working capital, vital "healthy cash flow" sign.
Total Assets Less CL	25,140	Increasing from prior years, indicating asset growth after liabilities.
Net Assets (Shareholders’ Funds)	25,140	Solid equity base, almost doubled from 10,877 in 2023, reflecting retained earnings or capital injections.
Share Capital	1	Minimal nominal share capital; company structure relies heavily on retained earnings.
Director Loans	413 (repaid in 2024)	Director advances were repaid, removing potential liability or cash flow risk.

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3. Diagnosis

OUT THERE ENVIRONMENTS LTD demonstrates several positive financial "vital signs" indicating robust health for a micro-entity:

• Strong Liquidity and Working Capital: The large net current assets (£22,505) suggest the company is not under immediate financial stress and can comfortably meet short-term obligations. This is akin to a patient with a strong pulse and stable blood pressure—essential for good health.

• Growing Equity Base: The net assets have increased significantly, showing profitability or capital retention. This is a sign of "good nutrition" for the business, meaning it is strengthening its financial reserves.

• Low Fixed Asset Base: The reduction in fixed assets may indicate asset disposals or limited investment in long-term infrastructure. This could be a symptom of a lean operational model or possibly underinvestment in growth assets.

• Minimal Share Capital: The nominal share capital of £1 is typical for small private companies but means the company relies largely on internally generated funds and retained earnings rather than external equity injections.

• Director Advances Cleared: The repayment of director loans removes a potential financial burden, indicating responsible management and improved cash flow position.

• Micro-entity Status and Filing Compliance: The company files timely and benefits from micro-entity accounting exemptions, implying simplicity but limited transparency to outsiders.

Overall, the company shows symptoms of a financially stable and carefully managed small business with healthy cash flow and sound equity growth.

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4. Recommendations

To maintain and improve financial wellness, consider the following actions:

• Monitor and Manage Fixed Assets: Investigate the decline in fixed assets to ensure it is strategic and not due to asset neglect. Investing in key long-term assets may support growth and competitive positioning.

• Strengthen Capital Structure: While current equity is adequate, exploring modest capital injections or external funding could provide a buffer for expansion or unexpected expenses.

• Maintain Strong Working Capital Controls: Continue managing receivables, payables, and cash efficiently to preserve liquidity and avoid symptoms of distress such as cash shortages.

• Plan for Growth and Scaling: As a micro-entity with one employee, consider the financial implications of scaling operations, including potential increases in liabilities or working capital needs.

• Formalize Financial Reporting: While audit exemption is appropriate, maintaining detailed internal financial reviews will help detect early warning signs of financial stress.

• Engage Financial Advisory Support: Periodic expert review can help optimize tax, cash flow, and investment decisions to sustain long-term health.

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