PHASED SITE ENGINEERING LTD

Executive Summary

PHASED SITE ENGINEERING LTD shows a financially stable profile typical of a newly formed micro-entity with positive net assets and working capital. While early-stage, the company’s financial health is sound with no immediate risks detected. Continued prudent management of cash flow and reserves will support sustainable growth and long-term financial wellness.

PHASED SITE ENGINEERING LTD - Analysis Report

Company Number: 14780534

Analysis Date: 2025-07-29 19:37 UTC

Financial Health Assessment for PHASED SITE ENGINEERING LTD

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1. Financial Health Score: B

Explanation:
PHASED SITE ENGINEERING LTD presents a sound financial baseline typical of a micro-entity in its first year of trading. The company shows positive net current assets and net assets, indicating initial financial stability. However, given its very recent incorporation and limited financial history, the score is cautious but optimistic (B). This reflects a "healthy but young" financial state, with room for growth and improvement as it matures.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	3,384	Modest investment in long-term resources, showing some capital commitment.
Current Assets	6,594	Short-term resources including cash and receivables, adequate for near-term needs.
Current Liabilities	5,667	Obligations due within one year; manageable but close to current asset levels.
Net Current Assets	1,685	Positive working capital indicates the company can cover short-term debts.
Total Assets less Current Liabilities	5,069	Solid buffer beyond short-term liabilities, indicating financial cushion.
Net Assets (Shareholders’ Funds)	4,239	Reflects retained earnings and equity; positive and healthy for a start-up.
Share Capital	100	Minimal initial equity investment, typical for micro companies.
Average Number of Employees	2	Small team, consistent with micro business classification.

Interpretation:
The company’s "vital signs" show a stable balance between assets and liabilities, with net current assets positive—akin to a patient with a normal pulse and blood pressure. The presence of fixed assets indicates an investment in operational capacity, while current assets comfortably cover immediate debts, suggesting healthy liquidity.

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3. Diagnosis

PHASED SITE ENGINEERING LTD is in the early stages of its business lifecycle, showing financial "vitality" typical for a recently incorporated micro-entity. The company’s balance sheet reveals no alarming "symptoms of distress" such as negative working capital or excessive liabilities. The net asset position is positive, demonstrating initial retained value and equity support from its parent company Phased Project Management Ltd, which holds 75-100% ownership and voting rights.

The absence of audit requirements and the micro-entity accounting regime used suggest a lean reporting structure, suitable for its size but limiting detailed financial insights. The company’s small scale and limited operating history mean that while the financial "pulse" is steady, it is too early to assess long-term resilience or profitability trends.

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4. Recommendations

• Monitor Cash Flow Diligently:
  Maintain close watch on cash inflows and outflows to ensure liquidity remains healthy as the business grows. Early-stage companies can face "cash flow fatigue" if expenses overtake revenues.

• Build Financial Reserves:
  Consider strategies to increase retained earnings and shareholder funds over time to strengthen the financial "immune system" against unforeseen shocks.

• Expand Asset Base Prudently:
  As business activity increases, invest thoughtfully in fixed assets that will generate returns, avoiding overextension.

• Regular Financial Reviews:
  Schedule periodic internal reviews to detect any emerging "symptoms" such as rising liabilities or declining working capital, enabling timely corrective action.

• Explore Growth Opportunities:
  Leverage the backing of the parent company and the directors’ expertise to pursue sustainable growth, which will improve profitability and financial robustness.

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