REEB LIMITED

Executive Summary

REEB LIMITED shows a healthy financial condition with strong liquidity and positive net assets typical of a micro-sized management consultancy. The company’s financial position is stable but requires monitoring of declining net assets to safeguard future growth. Maintaining strong working capital and prudent asset investment will support continued financial wellness.

REEB LIMITED - Analysis Report

Company Number: 13952566

Analysis Date: 2025-07-20 14:39 UTC

Financial Health Assessment of REEB LIMITED

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1. Financial Health Score: B

Explanation:
REEB LIMITED demonstrates a solid financial foundation typical of a micro-entity company in its early years. The company maintains positive net assets and healthy working capital, indicating good short-term liquidity. However, the reduction in net assets from the previous year and the relatively low fixed asset base suggest some mild caution. Overall, the company shows stable but cautious financial health appropriate for its size and stage.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Fixed Assets	773	Very low, reflecting minimal investment in long-term assets. Normal for a micro consultancy.
Current Assets	70,655	Healthy cash and receivables base, supporting operational liquidity.
Current Liabilities	18,997	Manageable short-term obligations; significantly lower than current assets.
Net Current Assets (Working Capital)	51,658	Strong positive working capital indicating the ability to cover short-term debts comfortably.
Net Assets	52,431	Positive equity base, though down from £67,074 the prior year, signaling some erosion of reserves.
Shareholders Funds	52,431	Equity held by shareholders; positive and consistent with net assets.
Average Number of Employees	3	Small team size consistent with micro-entity status.

Interpretation of Vital Signs:

• Healthy Cash Flow: The current assets exceed current liabilities by a wide margin, indicating that REEB LIMITED is not facing immediate liquidity stress—a crucial sign of financial wellness.
• Symptoms of Distress: The decline in net assets and fixed assets from the prior year could imply either a distribution of profits, losses, or asset disposals, which warrants monitoring. However, no red flags like negative net assets or excessive liabilities are present.
• Stable Operational Scale: Employee count steady at 3 aligns with expected scale for a micro-sized consultancy.

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3. Diagnosis

REEB LIMITED is financially stable with a healthy liquidity position and sufficient equity buffer. The company’s financial structure shows no symptoms of distress such as over-leverage or poor working capital management. The decline in net assets may reflect normal variations in profitability or capital movements rather than a critical condition.

The minimal fixed assets base is typical for a management consultancy, which relies more on human capital than physical assets. The company complies with all filing deadlines, reflecting sound governance. Directors have significant control and are actively involved, supporting stable management.

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4. Recommendations

• Monitor Profitability Trends: Investigate causes for the decrease in net assets to ensure it is not due to operational losses or unsustainable dividend payouts.
• Improve Fixed Asset Investment Prudently: While low fixed assets are normal, consider investing in essential technology or infrastructure that could enhance productivity or service delivery.
• Maintain Strong Working Capital: Continue managing receivables and payables efficiently to preserve the healthy liquidity position.
• Prepare for Growth: If the company plans to expand beyond micro thresholds, consider strategies for scaling operations and strengthening financial reserves.
• Regular Financial Reviews: Conduct periodic financial health check-ups to detect early signs of stress, enabling proactive management.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain credibility.

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