PRINT BADGER LTD

Executive Summary

PRINT BADGER LTD demonstrates solid financial health with positive working capital and steady equity growth, indicating operational stability. However, cash flow management needs attention to avoid liquidity strain due to high receivables relative to cash on hand. Strengthening cash reserves and improving debtor collection will enhance financial resilience as the company grows.

PRINT BADGER LTD - Analysis Report

Company Number: 13451700

Analysis Date: 2025-07-29 18:01 UTC

Financial Health Assessment for PRINT BADGER LTD as of 30 June 2024

---

1. Financial Health Score: B

Explanation:
PRINT BADGER LTD shows solid financial footing with positive net current assets and steady growth in shareholders’ funds over the past years. The company's liquidity position and working capital management appear healthy for its size and industry, though cash reserves are modest. This indicates good operational stability but room for improvement in cash flow management and growth financing.

---

2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	8,132	Adequate short-term resources, primarily debtors and cash.
Cash at Bank	2,845	Cash reserves are moderate; sufficient for near-term obligations but slightly lean.
Debtors	5,287	Higher proportion of current assets; indicates reliance on receivables collection.
Current Liabilities	2,489	Debts due within one year; manageable relative to assets.
Net Current Assets	5,643	Positive working capital; “healthy pulse” indicating ability to cover short-term liabilities.
Net Assets (Equity)	5,643	Positive equity growth year-on-year; shows retained profits and capital stability.
Share Capital	10	Nominal capital, typical for small private companies.
Average Employees	2	Small workforce, consistent with micro/small enterprise classification.

---

3. Diagnosis: Overall Financial Condition

PRINT BADGER LTD’s financial "vital signs" suggest a business in generally good health. The company maintains positive net current assets, meaning it can cover its short-term debts comfortably, much like a patient with stable vital signs. The steady increase in net assets and retained earnings over the last three years reflects consistent profitability and prudent financial management.

However, the relatively low cash balance compared to debtors highlights a symptom of potential cash flow constraints. The business depends heavily on collecting receivables to maintain liquidity—this could be a stress point if customers delay payments. Additionally, the company operates with very minimal share capital and a small team, which is typical but limits financial flexibility and scale.

The absence of long-term liabilities or fixed assets suggests the company is lean and possibly in an early or development stage, focusing on operational cash generation rather than asset accumulation.

---

4. Recommendations: Steps to Improve Financial Wellness

• Enhance Cash Flow Management:
  Implement stricter credit control and faster debtor collection policies to convert receivables into cash quicker. This reduces the risk of liquidity "fatigue" and strengthens the cash buffer.

• Build Cash Reserves:
  Aim to increase cash holdings to cover at least 3 months of operating expenses, providing a safety net for unforeseen expenses or business fluctuations.

• Consider Capital Injection or Financing:
  Explore options for increasing equity or obtaining short-term financing to fund growth initiatives or smooth operational cash cycles without stress.

• Monitor Creditors and Payables:
  Maintain good relationships with suppliers and potentially negotiate longer payment terms to improve working capital management.

• Plan for Growth:
  With a small workforce, consider strategic recruitment or outsourcing to expand capacity without overextending financially.

• Regular Financial Review:
  Conduct quarterly financial health check-ups to spot early signs of distress and adjust strategies proactively.

---