OUTTRADER LTD

Executive Summary

OUTTRADER LTD exhibits a stable financial condition typical for a growing micro-entity, with positive net assets and improving liquidity. The company shows no signs of financial distress and maintains good compliance with filing deadlines. To sustain and enhance financial wellness, management should focus on strengthening cash reserves, controlling liabilities, and planning for future growth investments.

OUTTRADER LTD - Analysis Report

Company Number: 12515973

Analysis Date: 2025-07-20 16:47 UTC

Financial Health Assessment for OUTTRADER LTD (As of 31 March 2024)

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1. Financial Health Score: B

Explanation:
OUTTRADER LTD demonstrates a solid and improving financial position for a micro-entity, showing positive net assets and growing working capital. There are no signs of overdue filings or financial distress. However, given the small scale and modest asset base, the company has room to strengthen liquidity and build reserves for greater resilience.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	15,149	Healthy increase indicating more cash or receivables available for short-term needs.
Current Liabilities	11,545	Moderate level of short-term obligations; manageable with current assets.
Net Current Assets (Working Capital)	3,604	Positive working capital, a good sign of liquidity "healthy cash flow" potential.
Net Assets / Shareholders’ Funds	2,164	Positive equity, indicating the company’s assets exceed liabilities, showing financial strength.
Share Capital	100	Typical for a micro private limited company, minimal but stable base capital.
Staff Numbers	2	Small workforce consistent with micro-entity status, manageable overhead.
Filing Status	Up to date	No overdue accounts or confirmation statement, indicating good compliance discipline.

Trend Analysis:

• Net assets have increased steadily from £100 in 2020 to £2,164 in 2024, reflecting accumulated retained earnings and/or efficient management of resources.
• Current assets more than doubled from 2023 to 2024, enhancing liquidity.
• Current liabilities increased but at a slower pace than current assets, improving net working capital.

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3. Diagnosis: Financial Condition

OUTTRADER LTD is showing the "vital signs" of a financially stable micro business with a positive working capital position and growing net assets. The company’s liquidity position is "healthy," indicating it can comfortably meet short-term obligations. The consistent growth in net assets points to sound management and profitable operations, though no profit & loss details are filed due to micro-entity exemptions.

The company’s balance sheet reveals no fixed assets, suggesting limited investment in long-term assets; this is typical for a service-oriented IT firm focused on software development and information technology services (SIC 62090 & 62012). The absence of debt beyond current liabilities reduces financial risk.

The small number of employees and controlled overheads also reflect a lean operational structure, minimizing financial strain.

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4. Recommendations

To further improve the financial health and ensure sustainable growth, OUTTRADER LTD should consider the following:

• Enhance Cash Reserves: Continue building cash balances to buffer against unexpected expenses or downturns, ensuring robust "financial immunity."
• Monitor Liabilities: Keep current liabilities in check relative to current assets to maintain positive liquidity ratios; avoid "symptoms of distress" such as overdue payables.
• Profit & Loss Transparency: Although audit exemptions apply, voluntarily preparing internal P&L reports can help directors monitor profitability trends and cost control.
• Invest in Growth: Explore modest investments in fixed assets or technology infrastructure to support scaling operations and competitive positioning.
• Maintain Compliance Vigilance: Continue timely filings and governance practices to avoid penalties and reputational risks.
• Strategic Planning: Develop a medium-term financial plan including cash flow forecasting to anticipate funding needs or expansion opportunities.

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Executive Summary