PHIVE LIMITED

Executive Summary

PHIVE LIMITED is financially healthy for a start-up micro-entity, showing positive net assets and strong working capital without signs of distress. The company is well-positioned for sustainable growth if it continues prudent cash flow management and builds profit reserves. Early compliance and governance practices provide a solid foundation for future expansion.

PHIVE LIMITED - Analysis Report

Company Number: 15154180

Analysis Date: 2025-07-20 19:17 UTC

Financial Health Assessment of PHIVE LIMITED

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1. Financial Health Score: B

Explanation:
PHIVE LIMITED demonstrates a sound financial footing typical of a newly established micro-entity with positive net assets and healthy working capital. The "B" grade reflects a stable start with solid equity and manageable liabilities but also acknowledges that the company is in its infancy with limited financial history and scale, restricting a top-tier score.

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2. Key Vital Signs

Vital Sign	Value	Interpretation
Net Assets	£59,258	Positive net assets indicate the company has more assets than liabilities — a sign of financial stability.
Net Current Assets	£15,466	Positive working capital ("healthy cash flow") suggests the company can meet short-term obligations comfortably.
Fixed Assets	£44,092	Investment in long-term assets shows commitment to operational capacity, appropriate for consultancy activities.
Current Liabilities	£30,723	Moderate short-term liabilities, manageable given current assets.
Directors’ Advances	£1,449 owed to Director	Small director loan indicates some internal financing, typical in start-ups, but should be monitored.
Employee Count	2	Small team size consistent with micro-entity status, limiting operational complexity.
Profit & Loss Reserve	Not explicitly stated	As a new company, accumulated profits/losses likely minimal; monitoring future profitability is crucial.

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3. Diagnosis: Financial Condition Overview

PHIVE LIMITED is in the early stages of its business lifecycle, reflected by its recent incorporation in September 2023 and micro-entity classification. The company exhibits "healthy cash flow" with positive net current assets, indicating it can cover its short-term debts without stress—no immediate liquidity symptoms of distress.

The net asset base of £59,258 signals sound financial "vitality," with equity funding exceeding liabilities, providing a cushion for growth or unforeseen expenses. The investment in fixed assets suggests the company is building operational capability rather than relying solely on intangible assets.

The small size and limited employee base suit the management consultancy sector and align with the micro-accounting thresholds, but also imply limited operational scale and revenue generation history, which constrains financial robustness.

There are no overdue filings or indications of financial distress such as negative working capital or excessive director loans. The directors hold balanced control and have maintained compliance with accounting and filing requirements.

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4. Recommendations

1. Monitor Cash Flow Closely:
   While current assets exceed liabilities, maintaining this positive working capital is critical. Regular cash flow forecasts will help anticipate any liquidity issues as the business grows.

2. Build Profit Reserves:
   Focus on generating and retaining profits to strengthen the P&L reserve. This will improve resilience against future downturns or investment needs.

3. Manage Director Loans Prudently:
   Keep director advances minimal and formalize terms to avoid potential conflicts or tax issues.

4. Plan for Growth and Diversification:
   Gradually increase employee count and diversify consultancy offerings to expand revenue streams and reduce business risk.

5. Maintain Compliance:
   Continue timely filing of accounts and confirmation statements to avoid penalties and maintain corporate reputation.

6. Consider External Audit in Future:
   As the company grows beyond micro thresholds or seeks external investment, an audit may enhance credibility with stakeholders.

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