RC SONOGRAPHY LIMITED

Executive Summary

RC SONOGRAPHY LIMITED is financially healthy for a micro-entity in its first year, showing strong liquidity and positive net assets with manageable liabilities. The company’s financial position is stable but should carefully monitor provisions and consider scaling operations and capital to support growth. Early financial discipline and strategic planning will be key to sustaining this positive trajectory.

RC SONOGRAPHY LIMITED - Analysis Report

Company Number: 15169922

Analysis Date: 2025-07-20 13:43 UTC

Financial Health Assessment for RC SONOGRAPHY LIMITED

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1. Financial Health Score: B

Explanation:
RC SONOGRAPHY LIMITED shows a solid financial footing for its first year of operation as a micro-entity. The company exhibits strong liquidity and positive net assets, indicating a healthy financial "pulse." However, the presence of provisions for liabilities suggests caution, and the lack of operational history and employees limits the depth of the financial diagnosis. Overall, the company is in good condition but still in early stages, warranting monitoring for future stability.

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2. Key Vital Signs (Financial Metrics and Interpretation)

Metric	Value (£)	Interpretation
Current Assets	28,345	Healthy short-term resources, mainly cash or equivalents, indicating liquidity for immediate needs.
Current Liabilities	1,551	Low short-term obligations relative to assets; manageable and unlikely to cause cash flow stress.
Net Current Assets	26,794	Strong working capital position, a sign of good short-term financial health or "healthy cash flow."
Provisions for Liabilities	9,600	Potential future obligations set aside; could be taxes, legal, or other contingencies—'symptom of caution.'
Net Assets (Equity)	17,194	Positive shareholder funds indicate the company’s net worth is in positive territory, a green flag for solvency.
Average Number of Employees	0	No staff employed yet; suggests early development phase or reliance on the director’s professional services.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Liquidity and Working Capital: The company has a robust short-term liquidity position with current assets exceeding current liabilities by a wide margin. This healthy cash flow base is vital for meeting immediate financial demands without distress.

• Solvency: Positive net assets show that the company’s total assets exceed its liabilities, which is a key indicator of financial stability and solvency. The equity of £17,194 reflects initial capital plus retained earnings or investment by the sole shareholder.

• Provisions for Liabilities: The £9,600 provision is a noticeable figure relative to net assets. While it does not currently threaten solvency, it signals the presence of contingent liabilities that management is prudently accounting for. This could point to future cash outflows and should be monitored.

• Operating Scale and Stage: With zero employees and being only just over a year old, the company is in its infancy, likely still in set-up or early revenue generation stages. It currently operates under micro-entity accounting provisions, indicating a small operational footprint.

• Governance and Control: The single director and 100% shareholder structure (Mr Ryan Carr) provides clear accountability but also concentrates control risk. The director’s background as a radiographer aligns with the company’s SIC code under "Other human health activities," suggesting relevant expertise.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Monitor and Manage Provisions: Investigate the nature of the £9,600 provisions to ensure they are accurate and sufficient. If these relate to tax or legal contingencies, plan cash flow accordingly to meet these obligations when due.

• Build Operational Capacity: Consider hiring or contracting support staff to scale operations if business activity grows, which will enhance operational capacity and revenue potential.

• Strengthen Capital Base: Explore opportunities for additional funding or reinvestment to increase working capital and cushion against unforeseen expenses, especially if provisions materialize.

• Implement Financial Controls: Establish robust accounting and cash management systems early to track income, expenses, and forecast financial needs, providing early warning signs of distress.

• Strategic Business Planning: Develop a clear business plan outlining growth targets, revenue streams, and investment needs to guide the company through its formative years and attract potential investors or lenders.

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