PACKAGEWARE LTD

Executive Summary

PACKAGEWARE LTD exhibits a stable financial foundation typical of a micro start-up with positive net assets and no immediate financial distress. However, the company currently operates at minimal scale with no employees and modest assets. To ensure a healthy financial future, it should focus on developing revenue streams, managing cash flow prudently, and preparing for growth-related compliance and operational needs.

PACKAGEWARE LTD - Analysis Report

Company Number: 14189194

Analysis Date: 2025-07-20 16:39 UTC

Financial Health Assessment Report for PACKAGEWARE LTD

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1. Financial Health Score: B

Explanation:
As a micro-entity in its first full financial year (incorporated June 2022, accounts to June 2023), Packageware Ltd shows a modest but stable financial position with positive net current assets and net assets. The absence of liabilities beyond short-term creditors and positive shareholders’ funds indicate a healthy financial baseline. However, given the very small scale of operations (no employees, minimal assets), growth potential and operational cash flow remain to be demonstrated. The "B" grade reflects sound initial foundations but limited financial depth typical of a start-up micro company.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£1,721	Modest liquid resources; small cash or receivables available to meet short-term obligations.
Current Liabilities	£333	Low short-term debts, indicating manageable obligations.
Net Current Assets	£1,389	Positive working capital ("healthy cash flow buffer") indicating ability to cover short-term debts.
Net Assets / Shareholders' Funds	£1,389	Equity capital fully supports the business assets; no debts exceeding assets.
Employees	0	No staff employed, suggesting minimal operational overhead and low fixed costs.
Company Size	Micro	Smallest reporting category, reflecting minimal scale and filing requirements.
Director Control	100% owned by one director	Single controlling shareholder/director, implying centralized decision-making.

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3. Diagnosis: Financial Condition and Underlying Business Health

Packageware Ltd’s financial "vital signs" indicate a start-up company with a clean and simple balance sheet. The positive net current assets indicate there are no immediate liquidity concerns or distress signals such as overdue debts or negative working capital. The absence of employees and the micro account status suggest the business is either in a very early stage of development or operating with minimal activity, possibly developing software or managing IT services as per its SIC codes (computer facilities management and software development).

The lack of audit and use of micro-entity provisions align with the company’s size and stage, reducing compliance burden but also limiting detailed financial transparency. The concentrated ownership and control by a single director may streamline decisions but could present risks if succession or diversification of management is not planned.

Overall, the company’s financial condition is stable but nascent. The absence of accumulated profits or losses and small asset base means that while there are no symptoms of financial distress, there is also limited evidence of substantial operational activity or revenue generation yet.

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4. Recommendations: Path to Improved Financial Wellness

• Build Revenue Streams: Focus on generating consistent income to move beyond the initial capital stage. This will create a "healthy cash flow" vital sign for future growth and operational sustainability.
• Monitor Working Capital: Maintain positive net current assets by managing receivables and payables carefully. Avoid "symptoms" of liquidity strain as the company scales.
• Consider Hiring Strategic Talent: While zero employees reduce overhead, bringing in skilled personnel or contractors could accelerate product development or service delivery.
• Plan for Growth and Compliance: As the company grows, prepare for transition from micro-entity accounts to more detailed reporting and potential audit requirements to enhance credibility with stakeholders.
• Diversify Management or Advisory Support: Consider adding directors or advisors to reduce operational dependency on a single individual and introduce broader expertise.

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