PHYSICK ENGINEERING LTD

Executive Summary

PHYSICK ENGINEERING LTD is a young micro-entity demonstrating a stable financial foundation with positive working capital and no liabilities. While currently limited in scale and operational activity, the company shows no distress signs and is well-positioned for growth. Focused efforts to generate revenue, manage cash flow, and build operational capacity will enhance its financial health and sustainability.

PHYSICK ENGINEERING LTD - Analysis Report

Company Number: 14719851

Analysis Date: 2025-07-29 17:39 UTC

Financial Health Assessment Report
Company: PHYSICK ENGINEERING LTD
Assessment Date: Post 31 March 2024 (Latest financial year end)

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1. Financial Health Score: Grade B

Explanation:
PHYSICK ENGINEERING LTD exhibits a solid foundational financial position for a newly incorporated micro-entity. With positive net current assets and shareholder funds, the company shows early signs of good financial stability. The absence of liabilities and a positive net asset position reflect a "healthy pulse" in its financial condition. However, minimal asset base, no turnover data, and limited operational history temper this score, warranting a "B" rather than an "A."

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£0	No long-term investments/assets; typical for early-stage micro company.
Current Assets	£833	Modest liquid assets; indicates some available working capital.
Current Liabilities	£0	No short-term debts; suggests no immediate financial distress.
Net Current Assets	£833	Positive working capital; "healthy cash flow buffer."
Provisions for Liabilities	£140	Small provisions; prudent recognition of future obligations.
Net Assets	£693	Positive equity; company is solvent with shareholders’ funds intact.
Number of Employees	0	No staff expenses; early development or pre-revenue stage.
Account Category	Micro	Minimal regulatory burden; small scale of operations likely.
Filing Status	Up to Date	Compliance with filing deadlines; no regulatory red flags.

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3. Diagnosis: Financial Symptom Analysis

PHYSICK ENGINEERING LTD is in its infancy, having been incorporated in March 2023 and filing its first accounts for the 13 months ending 31 March 2024. The financials reveal:

• Healthy Liquidity: Positive net current assets indicate the company has enough short-term resources to cover immediate obligations, a key sign of financial wellness and absence of distress symptoms.
• No Debt Burden: The company currently carries no creditors or short-term liabilities, reducing financial risk.
• Prudent Provisioning: A small provision (£140) could indicate recognition of minor future costs, showing cautious management.
• Lack of Revenue or Asset Base: No fixed assets and minimal current assets suggest the company is in the setup or research phase, consistent with its SIC codes relating to R&D and engineering activities.
• No Employees Yet: The absence of employees points to a lean operation, likely relying on the founder/director or subcontractors.
• Equity Position: Shareholders’ funds are positive, indicating the owners have capital invested in the business, supporting ongoing operations.

Overall, the company shows no financial distress symptoms but remains at an early stage with limited operational history and scale.

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4. Recommendations: Prescriptions for Financial Wellness

1. Build Operational Revenue and Asset Base:
   To strengthen financial health, focus on securing clients, contracts, or grants to generate revenue. This will improve cash inflows and allow investment in fixed assets or intellectual property.

2. Maintain Positive Cash Flow:
   Continue monitoring working capital closely to avoid liquidity crunches. Early cash flow management is critical to avoid symptoms of financial stress.

3. Plan for Growth and Staffing:
   As activities expand, consider hiring or outsourcing skilled personnel aligned with engineering and R&D goals. This will increase operational capacity but requires financial planning.

4. Regular Financial Reviews:
   Institute periodic financial health checks (quarterly cash flow forecasts and budget reviews) to detect early warning signs and adjust strategies promptly.

5. Explore Funding Opportunities:
   Investigate government grants, R&D tax credits, or seed investment to bolster capital without over-leveraging.

6. Maintain Compliance:
   Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with Companies House.

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