QUARRY LAKE CONTENT LIMITED

Executive Summary

Quarry Lake Content Limited exhibits a sound and improving financial condition typical of a healthy micro-entity, with strong liquidity and growing equity. The company benefits from good compliance and a stable governance structure but should focus on asset growth and profitability monitoring to sustain long-term wellness. Overall, the outlook is positive, with manageable risks and a solid foundation for future development.

QUARRY LAKE CONTENT LIMITED - Analysis Report

Company Number: 13889668

Analysis Date: 2025-07-20 18:39 UTC

Financial Health Assessment for Quarry Lake Content Limited

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1. Financial Health Score: B

Explanation:
Quarry Lake Content Limited demonstrates a solid financial footing with increasing net assets and healthy working capital, typical of a growing micro-entity. The company is free of overdue filings and has a stable ownership and governance structure. However, limited scale, modest fixed assets, and reliance on current assets highlight some vulnerability typical for small companies. Overall, the company shows signs of good financial wellness but would benefit from continued focus on cash flow management and asset growth to sustain longer-term stability.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	5,758	4,545	Low but increasing; suggests limited long-term investment.
Current Assets	69,752	47,136	Healthy liquidity pool; positive for short-term obligations.
Current Liabilities	23,735	23,720	Stable short-term debts; manageable relative to assets.
Net Current Assets	46,017	23,693	Strong working capital; "healthy cash flow" buffer.
Total Assets less Current Liabilities	51,775	28,238	Good cushion after covering immediate obligations.
Net Assets / Shareholders Funds	51,487	27,950	Equity has nearly doubled, indicating retained earnings growth.
Employees (average)	1	1	Micro-entity with minimal staff; manageable overhead costs.
Filing status	Up-to-date	Up-to-date	No symptoms of regulatory distress or compliance risks.

Interpretation:
The company’s balance sheet shows expanding equity and working capital, implying "healthy blood pressure" in financial terms—sufficient reserves and liquidity to meet obligations. The increase in net assets signals retained profits or capital injections, a positive "growth pulse." Fixed assets remain low, so the company is likely service-oriented or asset-light, which is common in professional activities.

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3. Diagnosis

Overall Financial Condition:
Quarry Lake Content Limited is financially sound for a micro-entity with no immediate distress symptoms. The company’s "vital signs" such as net current assets and shareholders funds are improving year-on-year, indicating operational profitability or capital strengthening. The stable current liabilities relative to assets show good control over short-term debts and commitments.

The company’s micro classification and small team size suggest a lean operation, which reduces fixed overhead but may limit scalability. The presence of a single majority shareholder and director control provides clarity in governance but may also concentrate risk in key individuals.

No overdue filings or penalties indicate good compliance health, reducing regulatory risk. The absence of an audit is typical for micro companies and reflects cost efficiency.

Potential Symptoms to Monitor:

• Limited fixed assets may constrain expansion or increase vulnerability if current assets are drawn down.
• Dependency on a small management team could be a risk factor if key personnel are unavailable.
• No profit & loss details available; profitability should be closely monitored to ensure continued growth.

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4. Recommendations

1. Enhance Asset Base: Consider prudent investment in fixed assets or intangible assets (e.g., software, intellectual property) to build long-term value and support growth.

2. Maintain Strong Working Capital: Continue to monitor and optimise cash flow management to ensure liquidity remains robust, preventing "cash flow congestion."

3. Diversify Management Responsibilities: Mitigate concentration risk by delegating operational roles or involving additional directors or advisors.

4. Prepare for Growth: As the company matures, plan for transition beyond micro-entity thresholds by strengthening financial reporting and internal controls.

5. Profitability Monitoring: Although P&L data is not filed publicly, internally track profit margins and cost management to detect any early symptoms of financial strain.

6. Regulatory Compliance: Maintain timely filing of accounts and confirmation statements to avoid penalties and ensure a clean compliance record.

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