PASTEL HOLDINGS LIMITED

Executive Summary

Pastel Holdings Limited is a newly formed private limited company with a stable but very basic financial structure reflecting initial capitalization without operational activity. The company is financially balanced but fragile, with minimal cash and no working capital buffer. To improve its financial health, the company should focus on generating revenue, increasing liquidity, and implementing strong financial management practices.

PASTEL HOLDINGS LIMITED - Analysis Report

Company Number: 14672734

Analysis Date: 2025-07-29 13:56 UTC

Financial Health Assessment for Pastel Holdings Limited
(Financial year ended 30 November 2023)

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1. Financial Health Score: Grade C

Explanation:
Pastel Holdings Limited is a newly incorporated private limited company with minimal financial activity to date. The financials show a very basic structure with initial equity and corresponding liabilities, reflecting the startup phase. While there are no signs of distress or insolvency, the current financial "vital signs" are limited and indicate a fragile but stable condition. The score reflects a company at the start of its journey with healthy initial capitalization but lacking operational financial metrics to rate higher.

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2. Key Vital Signs

Metric	Value	Interpretation
Cash at bank	£100	Very limited cash reserve; adequate for initial setup but insufficient for operational needs.
Current Liabilities	£100	Equal to cash, indicating no net working capital; company is balanced but with no buffer.
Net Current Assets	£0	No positive working capital; company cannot cover current liabilities beyond cash on hand.
Shareholders Funds (Equity)	£100	Reflects initial share capital invested by owner; no retained earnings yet.
Fixed Asset Investments	£100	Investment in subsidiaries or related entities; represents non-liquid assets.
Profit & Loss Reserves	£0	No profits or losses accumulated; company likely has not traded or generated income yet.
Employees	Nil	No staff employed, indicating pre-operational or early stage.
Filing Status & Compliance	Up to date	All filings on time; indicates good administrative health.

Interpretation:

• The company's cash flow is "healthy" for its stage but extremely limited in absolute terms.
• The balance sheet shows a simple structure with no operational revenues or expenses reported yet.
• Working capital is neutral; the company holds just enough cash to meet immediate liabilities but no excess for growth or unexpected costs.
• The investment in group undertakings signals the company is part of a wider group structure, possibly holding or managing investments rather than active trading.

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3. Diagnosis

The financial "symptoms" of Pastel Holdings Limited reveal a company in its infancy. The single period financial statements reflect initial capitalization without operational activity. The balance sheet is balanced but shows no surplus working capital or liquidity buffer beyond the initial cash and liabilities equal in value. The absence of employees and profit/loss reserves suggests the company has not yet commenced trading or significant business transactions.

There are no "symptoms of distress" such as overdue filings, negative equity, or excessive liabilities. However, the company's financial health is currently "fragile" due to the limited scale of its resources and lack of operational data. The company’s financial condition is stable but unproven in terms of generating sustainable income or cash flow.

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4. Prognosis

Given the current financial indicators, the prognosis is cautiously optimistic but depends heavily on the company's ability to commence and grow operational activities. The company's capital base and zero net working capital mean it is vulnerable to unexpected expenses or delays in generating revenue. If the company begins trading successfully and builds up cash reserves and profits, the financial health score could improve rapidly.

On the other hand, without active business development or additional funding, the company risks stagnation or financial strain as initial resources deplete.

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5. Recommendations

To improve financial wellness and build a robust financial foundation, Pastel Holdings Limited should consider the following actions:

• Enhance Liquidity: Increase cash reserves beyond minimal levels to create a buffer for operational expenses and unforeseen costs.
• Commence Trading Activities: Focus on generating revenue streams promptly to move beyond a purely capitalized holding entity.
• Implement Financial Controls: Even at early stages, establish budgeting and cash flow forecasting to monitor financial health proactively.
• Build Working Capital: Aim to achieve positive net current assets by managing receivables, payables, and cash efficiently.
• Monitor Related Party Transactions: Given investments and creditors are related parties, ensure transparency and arm's length terms to avoid financial or regulatory risks.
• Plan for Growth: Consider raising additional capital or reinvesting profits to support expansion and operational scaling.
• Maintain Compliance: Continue timely filings and robust governance to avoid penalties or legal issues.

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