Company Number: 13105568

Analysis Date: 2025-07-20 15:09 UTC

Financial Health Assessment Report for PETERSFIELD SOLUTIONS LTD

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1. Financial Health Score: A-

Explanation:
PETERSFIELD SOLUTIONS LTD demonstrates strong financial vitality with robust net current assets and steadily increasing shareholders’ funds. The company shows a healthy liquidity position and solid equity base, reflecting prudent management and a stable financial structure for a micro-entity. Minor caution is warranted due to slight decline in fixed assets and increased long-term creditors, but overall health remains excellent.

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2. Key Vital Signs

Metric	2022 Value (£)	2021 Value (£)	Interpretation
Fixed Assets	26,810	29,184	Slight decrease (8%)—asset base stable but monitor for depreciation or disposal.
Current Assets	371,930	233,750	Significant increase (~59%)—strong growth in liquid resources or receivables, positive cash flow.
Current Liabilities	28,774	32,951	Decreased current obligations—improving short-term solvency.
Net Current Assets	343,156	200,799	Increased working capital indicates enhanced ability to cover short-term debts comfortably.
Creditors > 1 Year	46,053	20,481	Long-term liabilities more than doubled; requires monitoring for repayment terms and impact.
Net Assets / Shareholders Funds	323,913	209,502	Substantial growth (54%)—strengthening equity position and retained earnings.
Employees (average)	5	6	Slight reduction in workforce—may reflect efficiency gains or restructuring.

Vital Sign Summary:
The company’s liquidity is "healthy cash flow" with substantial net current assets cushioning operational needs. Growth in equity signals profitability retention or capital injection, boosting financial resilience. However, the increased long-term creditors could be a "symptom of financing appetite" to support expansion or capital investment, which needs careful management.

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3. Diagnosis

PETERSFIELD SOLUTIONS LTD is financially "fit and robust" for a micro-entity. The balance sheet shows strong liquidity and a rising equity base, indicating sound management of operational cash and profitability. The company’s working capital position is excellent, which means it can comfortably meet short-term obligations—akin to a patient with a strong heartbeat and good blood pressure.

The increase in long-term creditors suggests the company may be leveraging debt to finance growth or investments, which is not necessarily unhealthy but requires ongoing vigilance to ensure repayment capacity remains strong. The slight drop in fixed assets is minor and does not currently signal distress but should be reviewed annually.

The slight reduction in employee numbers is a neutral symptom and could reflect operational optimization rather than financial strain.

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4. Recommendations

• Monitor Long-Term Debt: Regularly review repayment schedules and cash flow forecasts to ensure the increased long-term creditors do not become a "chronic condition" leading to liquidity stress.
• Asset Management: Investigate the cause of fixed asset reduction to confirm it is due to normal depreciation or asset disposal rather than neglect or impairment.
• Cash Flow Maintenance: Maintain the current "healthy cash flow" by managing receivables and payables efficiently; consider cash flow scenario planning.
• Growth Strategy Review: If the long-term liabilities fund expansion, ensure business growth metrics justify the increased financial leverage.
• Employee Efficiency: Assess workforce changes to ensure operational capacity aligns with business needs without risking service or delivery quality.
• Regular Financial Review: Continue frequent financial health checks to detect early "symptoms of distress" and act promptly.

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