PD (N.I.) GROUNDWORKS LIMITED

Executive Summary

PD (N.I.) Groundworks Limited shows a healthy financial position with strong liquidity, growing equity, and prudent management for a young micro-entity. The company exhibits positive working capital and asset growth, indicating a stable and expanding business. Continued focus on cash flow management and strategic investment will support sustainable growth and financial resilience.

PD (N.I.) GROUNDWORKS LIMITED - Analysis Report

Company Number: NI686137

Analysis Date: 2025-07-29 17:51 UTC

Financial Health Assessment for PD (N.I.) Groundworks Limited
Date of Assessment: June 2024

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1. Financial Health Score: B

Explanation:
PD (N.I.) Groundworks Limited demonstrates solid financial footing for a micro-entity in its early years of operation. The company exhibits strong working capital, positive net assets, and increasing equity, indicative of healthy growth and effective management of resources. However, being a young company with a limited operating history and modest fixed assets base, it has some natural constraints on its financial robustness compared to larger, more established peers. The score "B" reflects a good financial condition with room for improvement and monitoring.

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2. Key Vital Signs

Metric	2024 Figure (£)	Interpretation
Fixed Assets	37,617	Moderate investment in long-term assets, showing foundational business capacity growth.
Current Assets	102,741	Healthy cash and receivables pool, indicating good liquidity and ability to meet short-term obligations.
Current Liabilities	28,663	Manageable short-term debts, about 28% of current assets, reflecting careful credit control.
Net Current Assets (Working Capital)	74,078	Strong positive working capital, a vital sign of financial health ensuring operational stability.
Total Assets Less Current Liabilities	111,695	Indicates overall asset strength after considering short-term debts.
Provisions for Liabilities	6,929	Introduction of provisions signals awareness of potential future obligations; prudent financial practice.
Shareholders’ Funds	103,266	Equity has increased significantly from £78,157 in 2023, showing retained earnings and capital growth.
Employee Numbers	2	Small workforce, consistent with micro-entity status; growth from zero employees prior year indicates operational expansion.

Interpretation:

• The company’s working capital is a vital sign of "healthy cash flow" and operational liquidity, suggesting it can comfortably meet upcoming obligations without distress.
• Growing shareholders' funds reflect profitability and effective reinvestment into the business ("healthy balance sheet").
• The presence of provisions can be viewed as symptoms of cautious financial planning, possibly related to anticipated expenses or risks.
• The increase in employee numbers and fixed assets indicate ongoing business development and investment in operational capacity.

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3. Diagnosis

PD (N.I.) Groundworks Limited is in a financially stable condition, showing symptoms of a growing and well-managed micro-business. The company’s net current assets and equity growth reveal strong internal funding and liquidity without reliance on excessive short-term debt. The financial statements show no signs of distress such as negative working capital, eroding equity, or insolvency risks.

The company is in its infancy (incorporation in 2022) but is building a solid asset base and increasing operating resources (employees). The director’s loan overdraft was repaid, which is a positive sign of financial discipline, eliminating internal creditor risk.

The micro-entity accounting basis and exemption from audit reduce compliance costs, which is common for companies at this scale but limits external assurance. Nonetheless, the financial data provides transparent insight into its sound financial posture.

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4. Recommendations

To maintain and improve its financial wellness, PD (N.I.) Groundworks Limited should consider:

• Maintain Strong Working Capital Management: Continue monitoring receivables and payables to preserve liquidity, avoiding symptoms of cash flow strain.
• Monitor Provisions Closely: Review the nature of provisions to confirm they are adequate but not excessive, as over-provisioning can tie up funds unnecessarily.
• Invest Prudently in Fixed Assets: Align asset purchases with operational growth to avoid overextension and maintain asset utilization efficiency.
• Plan for Growth: With the increase in employees and assets, implement budgeting and forecasting tools to anticipate future financial needs and optimize resource allocation.
• Regular Financial Reviews: Despite audit exemption, periodic internal or external reviews can help detect early symptoms of financial stress or opportunities for improvement.
• Maintain Compliance: Keep up-to-date with filing deadlines and statutory obligations to avoid penalties or reputational damage.
• Explore Funding Options: As the company grows, evaluate opportunities for external financing to support expansion, ensuring terms align with business cash flow capabilities.

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