Company Number: 14759723

Analysis Date: 2025-07-19 12:07 UTC

Financial Health Assessment: PRISMA LUNA LIMITED

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1. Financial Health Score: B (Good)

Explanation:
PRISMA LUNA LIMITED is a newly incorporated private limited company classified as dormant for the financial year ending 31 March 2024. The company shows a clean balance sheet with minimal activity and no debts or liabilities, evidenced by net assets and shareholders’ funds equal to £100, representing the initial share capital. The absence of operational financial data limits a comprehensive evaluation, but the current state reflects a stable financial condition typical of a dormant entity. The company’s financial health is good given its status, but the score is restrained by the lack of active trading and cash flow data.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Status	Active	Company is currently registered and operational (not liquidated or dissolved).
Account Category	Dormant	No significant financial transactions during the year. Indicates inactivity.
Cash at Bank	£100	Very low cash balance, typical for dormant status; no operational cash flow.
Net Assets	£100	Represents initial capital only; no accumulated profits or losses.
Shareholders’ Funds	£100	Fully funded by initial share capital; no external liabilities.
Director	1 (Hao Lin Chang)	Single director with full control; stability in management.
Industry Classification	70229	Management consultancy activities (other than financial management)

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3. Diagnosis: Current Financial Condition

PRISMA LUNA LIMITED, incorporated in March 2023, has maintained dormant status through the latest accounting period ending March 2024. The "symptoms" of financial health — such as minimal cash on hand and no liabilities — indicate the company has neither generated revenue nor incurred expenses. This is typical of a dormant company and implies no operational risk or financial distress at this stage.

The balance sheet shows a clean but minimal financial position, with total net assets equal to the nominal share capital of £100. There are no red flags such as overdue filings, liabilities, or negative equity. The director is a single individual with full ownership and control, suggesting straightforward governance but also concentration risk should the business activate operations.

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4. Prognosis: Future Financial Outlook

If the company activates trading or consultancy activities, it will need to closely monitor cash flow, working capital, and profitability metrics to maintain good financial health. At this dormant stage, the prognosis is stable but untested. The company must ensure timely filings to avoid penalties and prepare to manage operational expenses prudently once active.

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5. Recommendations to Improve Financial Wellness

• Activate Financial Operations with Caution: If the company plans to start trading, prepare a detailed budget and cash flow forecast to avoid liquidity crises.
• Maintain Compliance: Continue timely submission of accounts and confirmation statements to maintain good standing with Companies House.
• Build Financial Records: Upon activation, establish robust accounting records to monitor revenues, expenses, and profitability.
• Consider Funding Needs: Evaluate capital requirements early if expansion is planned; consider equity injections or loans to support growth.
• Risk Management: With a single director and majority ownership, consider appointing additional directors or advisors to enhance governance diversity and oversight.
• Plan for Taxation: Dormant status exempts corporation tax filings, but active trading will introduce tax obligations; proactive tax planning is advised.

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Medical Analogy Summary

PRISMA LUNA LIMITED currently exhibits the "vital signs" of a dormant patient — stable but inactive, with no symptoms of financial distress or operational challenge. The company is in a state of financial quiescence, akin to a patient in remission, requiring ongoing health monitoring but no immediate intervention. The prognosis is positive if the company transitions to active operation with careful financial management.

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