Company Number: 14861242

Analysis Date: 2025-07-29 12:26 UTC

Financial Health Assessment of QUADRATICK LTD as of 31 May 2024

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1. Financial Health Score: C

• Explanation: The company is in the very early stage of its life cycle with minimal financial activity and assets. The presence of positive net current assets is a good sign, but the scale is very small (£846) which limits the operational capacity. The absence of liabilities is positive, but the extremely modest asset base and lack of revenue or profit data indicate a fragile financial position typical of a startup or micro-entity in formation. Hence, the score is average with potential to improve as business activities develop.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£0	No long-term investments or equipment yet acquired.
Current Assets	£846	Small cash or equivalents; limited liquidity buffer.
Current Liabilities	£0	No short-term debts; no immediate financial pressure.
Net Current Assets	£846	Positive working capital, though very small in amount.
Net Assets / Shareholders Funds	£846	Equity capital almost equal to net current assets; no retained earnings yet.
Number of Employees	2	Very small workforce consistent with micro-entity status.
Account Category	Micro	Minimal reporting obligations; small scale business.
Directors	1 Active (Samay Patel)	Limited management resources currently.

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3. Diagnosis

• Symptoms:

  • The company's financial "vitals" show a very small operation with virtually no asset base apart from minor current assets (likely cash).
  • No liabilities imply no debt stress, which is a positive sign, but also suggest no credit leverage or external financing.
  • The absence of fixed assets indicates the company has not invested in physical or intangible long-term resources, which might limit operational capacity.
  • The small equity base (£846) is typical for a newly incorporated micro-entity, reflecting initial capital injection or funds on hand.
  • The low employee number and company size suggest early-stage startup status or a side-operation rather than a fully scaled business.
  • Director turnover within the first year (two directors resigned) could be a symptom of internal changes or restructuring but currently only one director remains active, potentially stretching leadership capacity.

• Underlying Health:
  The company is financially stable but fragile, with no immediate distress signals such as debt pressures or liquidity shortfalls. However, it is not yet generating significant business activity or financial strength. Its health resembles a newborn patient with stable vital signs but requiring nourishment and growth to thrive.

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4. Recommendations

• Increase Working Capital:
  Seek to increase cash reserves or current assets to build a stronger liquidity buffer for operational flexibility.

• Invest in Assets:
  Consider acquiring essential fixed assets or technology to support service delivery and business growth, especially given the IT and education sector focus.

• Monitor Director Stability:
  Ensure stable and active leadership by maintaining a committed board; consider appointing additional directors if needed for expertise and governance.

• Develop Revenue Streams:
  Prioritize generating income and building profit reserves to replace the reliance on initial equity and small cash amounts.

• Plan for Growth:
  As a micro-entity, keep close track of financial thresholds to comply with filing requirements but prepare to scale operations prudently.

• Maintain Compliance:
  Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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