RAEBURN ANALYTICS LTD

Executive Summary

Raeburn Analytics Ltd, a young micro-entity, demonstrates solid financial health with improving liquidity and net assets over the past two years. Its current financial position reflects a stable and solvent business with manageable liabilities and growing shareholder funds. To ensure continued growth and resilience, the company should focus on strengthening its capital base and strategic planning for expansion.

RAEBURN ANALYTICS LTD - Analysis Report

Company Number: SC752004

Analysis Date: 2025-07-20 16:25 UTC

Financial Health Assessment of Raeburn Analytics Ltd

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1. Financial Health Score: B

Explanation:
Raeburn Analytics Ltd demonstrates a solid and improving financial position for a micro-entity in its early years. The company shows positive net current assets and net assets, indicating a stable liquidity position and growing equity base. However, given the company’s small scale, limited diversification, and early stage of development, it is prudent to assign a "B" rating reflecting good health with room for continued growth and strengthening.

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2. Key Vital Signs

Metric	2023-03-31	2024-03-31	2025-03-31	Interpretation
Current Assets (£)	27,802	27,802	35,857	Healthy increase in liquid resources.
Current Liabilities (£)	23,655	23,655	22,765	Slight reduction, easing short-term obligations.
Net Current Assets (£)	4,147	4,147	13,092	Improved working capital – strong liquidity.
Net Assets (£)	4,147	4,147	13,092	Increased shareholder equity, signaling growth.
Share Capital (£)	10	10	10	Minimal share capital; typical of micro-entities.

• Liquidity: The positive and growing net current assets show the company has a "healthy cash flow" situation, able to meet short-term debts comfortably.
• Solvency: Net assets are positive and increasing, indicating the company is solvent with a growing buffer against liabilities.
• Capital Structure: Very low share capital but growing reserves suggest retained earnings or other equity contributions are building shareholder funds.
• Operational Scale: Single director and employee indicate a very small operation, typical for a micro business just over two years old.

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3. Diagnosis

Raeburn Analytics Ltd exhibits the "symptoms of a healthy young business" with improving liquidity and equity position. The company’s ability to reduce current liabilities slightly while increasing current assets indicates careful management of working capital. The absence of any loans outstanding to directors as of the latest year-end (repayment of prior advances) removes concerns over related-party risks.

The company’s financial statements show no signs of distress such as negative net assets, excessive liabilities, or deteriorating working capital. However, the small scale and modest capital base limit its ability to absorb shocks or fund rapid expansion without external financing.

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4. Recommendations

• Strengthen Capital Base: Consider increasing share capital or bringing in additional equity to provide a stronger foundation for growth and risk absorption.
• Monitor Working Capital: Maintain the trend of improving net current assets to ensure liquidity remains robust, especially as business activities grow.
• Diversify Revenue Streams: Explore opportunities to broaden service offerings or client base to reduce dependency on any single source.
• Plan for Growth: Develop a strategic plan for scaling operations, potentially hiring additional staff or investing in technology.
• Maintain Compliance: Continue timely submission of accounts and confirmation statements to avoid penalties and maintain good standing.
• Risk Management: Implement basic risk controls to safeguard against operational or financial shocks given the limited buffer.

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Medical Analogy Summary

Raeburn Analytics Ltd’s financial "vitals"—current assets, liabilities, and net assets—show a company in "good health" with no immediate distress signals. The "immune system" of the business, represented by equity and liquidity, is strengthening, enabling it to fight off potential financial ailments. However, like a young patient, it needs ongoing monitoring and appropriate nourishment (capital and strategic growth) to thrive long-term.

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