REFRAKT LTD

Executive Summary

Refrakt Ltd is a newly formed micro-entity with minimal financial activity, reflecting its startup phase. The company shows stable but very limited financial resources and no operational employees, indicating early development with no current financial distress. To improve its financial health, the company should focus on increasing cash reserves, initiating sales, and planning for sustainable growth.

REFRAKT LTD - Analysis Report

Company Number: 14758721

Analysis Date: 2025-07-19 11:53 UTC

Financial Health Assessment for Refrakt Ltd

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1. Financial Health Score: C

Explanation:
Refrakt Ltd is a very young micro-entity with limited financial activity and minimal assets. The financial health is stable but fragile, reflecting the early startup phase with a very small asset base and no employees. The company shows no signs of distress but also no strong financial cushion or growth indicators yet.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£1,277	Very low; indicates limited cash or short-term resources available.
Net Current Assets	£1,277	Positive, but minimal working capital; the company can meet short-term liabilities.
Net Assets	£1,277	Positive equity but very small; indicates initial capital investment only.
Employees	0	No staff employed yet; suggests early developmental stage or owner-operated business.
Company Age	1 Year	Startup phase; financials usually limited and focused on establishing operations.
Account Category	Micro	Minimal reporting requirements; financial data limited but consistent with size.
Shareholder Control	75-100%	Single owner control; decision-making centralized.

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3. Diagnosis: What the Financial Data Reveals

• Healthy Cash Flow Signal: The company holds current assets slightly above zero, indicating some initial cash or receivables, which is a positive sign for a startup’s liquidity.
• Symptoms of Early Stage: The absence of employees and minimal assets reflect that the business is likely in the formation or product development phase rather than revenue generation.
• No Financial Distress: There are no liabilities reported, which means the company is not burdened with debt. This is a healthy sign but also means the company has not yet engaged in significant trading or borrowing.
• Limited Operational Activity: The micro-entity status and small asset base suggest no substantial trading history or sales yet. Profit and loss data are unavailable, which limits insight into profitability.
• Strong Ownership Control: One individual holds full control and voting rights, which allows for swift decision-making but also concentrates risk.

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4. Recommendations: Steps to Improve Financial Wellness

• Build Cash Reserves: Aim to increase current assets through sales, investment, or funding to create a stronger liquidity buffer.
• Initiate Revenue Streams: Focus on commercial activities to generate turnover and sustain operations beyond the startup phase.
• Consider Hiring or Outsourcing: Even a small team or external contractors can help scale operations and develop the business.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Explore Funding Options: Look into seed funding, grants, or loans to support growth initiatives and build working capital.
• Monitor Financial Metrics: As the company grows, track profitability, cash flow, and debt ratios to detect any early symptoms of distress.
• Plan for Longer-Term Growth: Develop a strategic plan that includes financial forecasting, budgeting, and investment in assets or technology.

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