PEOPLEDOTCOM LTD

Executive Summary

PEOPLEDOTCOM LTD shows strong financial health marked by positive working capital and solid net assets, reflecting good liquidity and solvency. While cash reserves have declined, the company remains financially stable with manageable liabilities and a strong equity base. Focused steps on cash flow management and asset utilization will support continued financial wellness and growth.

PEOPLEDOTCOM LTD - Analysis Report

Company Number: 12990308

Analysis Date: 2025-07-20 14:20 UTC

Financial Health Assessment for PEOPLEDOTCOM LTD

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1. Financial Health Score: B

Explanation:
PEOPLEDOTCOM LTD demonstrates solid financial stability with a healthy balance sheet and positive net assets. The company maintains strong working capital and shareholder equity, indicating good liquidity and solvency. However, a slight decline in cash reserves and fixed assets depreciation suggests room for improvement in cash flow management and asset reinvestment. Overall, the company is financially sound but should monitor cash levels and asset utilization closely.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	5,897	Small, indicating limited long-term asset investment.
Current Assets	128,989	Adequate short-term resources to cover liabilities.
Cash	73,040	Healthy cash reserve, but reduced significantly from 2022.
Debtors	55,949	Moderate receivables, suggests active sales on credit.
Current Liabilities	46,490	Manageable immediate obligations.
Net Current Assets	82,499	Positive working capital, indicating liquidity strength.
Total Assets less Current Liabilities	88,396	Reflects overall asset strength minus short-term debts.
Net Assets / Shareholders' Funds	87,082	Solid equity base, showing company value after liabilities.
Share Capital	1.00	Nominal, typical for private limited companies.

Interpretation of Vital Signs:

• Liquidity: The company has more than enough current assets to cover short-term liabilities, a sign of healthy cash flow management.
• Solvency: Positive net assets and shareholders' funds indicate the company is solvent and financially stable.
• Asset Management: Fixed assets are low and have decreased slightly, which may reflect limited investment in property/equipment or depreciation outpacing additions.
• Receivables: Debtors increased, indicating sales on credit; monitoring collection efficiency is advisable to avoid cash flow strain.

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3. Diagnosis: Financial Health Overview

PEOPLEDOTCOM LTD exhibits the symptoms of a financially healthy SME operating in the information technology consultancy sector. The company maintains a stable liquidity position with sufficient working capital and a strong equity base. The "healthy cash flow" is evidenced by positive net current assets and reasonable cash holdings, although cash reserves have declined over the last year, which could be a mild symptom of increased operating expenses or investment. The consistency in net assets over the past years points to steady financial performance without significant distress.

The business has a small fixed asset base, typical for an IT consultancy, which relies more on intellectual capital than physical assets. The increase in debtors implies the company is extending credit to clients, which should be managed carefully to avoid late payments impacting liquidity.

No symptoms of financial distress such as overdrafts, high creditor levels, or negative net assets are present. The company appears well-capitalized with shareholder funds exceeding liabilities by a comfortable margin.

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4. Recommendations: Steps to Improve Financial Wellness

• Enhance Cash Flow Monitoring: Address the decrease in cash reserves by implementing tighter control on receivables collection and reviewing payment terms to improve cash inflows.
• Asset Management Review: Assess the fixed asset turnover and consider whether investment in technology or equipment could enhance operational efficiency or competitive advantage.
• Maintain Working Capital: Continue to monitor current liabilities closely to ensure they remain manageable and do not outpace current assets, preserving liquidity.
• Credit Control: Evaluate debtor ageing reports and consider stricter credit policies or incentives for early payment to reduce outstanding receivables.
• Profitability Analysis: Since detailed profit and loss figures are not provided, ensure regular financial reviews to track profitability and cost management to sustain equity levels.
• Strategic Planning: Given the company's focus on digital strategy for social impact, explore growth opportunities and funding options to fuel expansion without compromising financial health.

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