RELF LIMITED

Executive Summary

RELF LIMITED, a newly incorporated micro-entity in the artistic creation sector, displays a sound financial foundation with positive net assets and working capital indicating liquidity and no immediate financial distress. While the limited trading history restricts deeper profitability analysis, the company’s early financial vital signs are healthy, suggesting a stable start. Continued attention to cash flow management and building comprehensive financial records will be crucial for sustained financial wellness and growth.

RELF LIMITED - Analysis Report

Company Number: 14671839

Analysis Date: 2025-07-29 18:28 UTC

Financial Health Assessment for RELF LIMITED

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1. Financial Health Score: B

Explanation:
For a micro-entity incorporated less than two years ago, RELF LIMITED shows a solid start with positive net assets and working capital. While the company is in its infancy and data is limited, the balance sheet indicates a generally healthy financial condition without signs of distress. However, the absence of income statement data and limited operational history means the score reflects cautious optimism rather than a full endorsement.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	623	Minimal long-term assets, typical for a new micro company.
Current Assets	12,817	Cash, debtors, or inventory available for short-term needs.
Current Liabilities	8,503	Short-term obligations to be paid within a year.
Net Current Assets (Working Capital)	4,314	Positive working capital indicates liquidity to cover short-term debts.
Total Assets less Current Liabilities	4,937	Overall asset value net of short-term liabilities.
Net Assets (Equity)	4,937	Positive shareholder equity showing initial capital or retained earnings.
Employee Count	4	Small team consistent with micro-entity status.

Interpretation:

• The company’s positive net current assets resemble a "healthy pulse," showing it can meet its immediate liabilities without strain.
• Modest fixed assets suggest the business relies more on liquid or short-term resources than heavy capital investment, common in artistic creation activities.
• A positive net asset figure signals no financial "ailments" like insolvency or over-leveraging at this early stage.

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3. Diagnosis

RELF LIMITED’s financial "symptoms" indicate a stable early-stage business with adequate liquidity and capital base. The company is not burdened by debt beyond what its current assets can cover, which means it is not showing signs of financial distress or cash flow problems. The presence of four directors and shareholders with roughly equal control suggests balanced governance, which can positively influence strategic decisions and fiscal discipline.

However, as a micro-entity with less than a year of trading history, there are limitations in assessing profitability, operational efficiency, or long-term sustainability. The absence of an income statement and limited asset base reflect that the company is still in its formative phase, likely investing in establishing its artistic activities and customer base.

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4. Recommendations

• Maintain healthy cash flow: Continue monitoring working capital closely to ensure short-term liabilities remain comfortably covered by current assets. Think of this as maintaining a "steady heartbeat" in financial health.
• Build financial history: Prepare and file detailed income statements in future periods to diagnose profitability and operational efficiency more comprehensively. This will help detect any "hidden symptoms" early on.
• Consider asset investment carefully: As the company grows, evaluate the potential benefits of investing in fixed assets or intangible assets that could enhance production capacity or artistic output. Avoid overextension to prevent financial strain.
• Regularly review governance: With multiple directors holding significant shares, ensure clear communication and shared vision to avoid internal conflicts which could weaken business stability.
• Plan for growth cautiously: As the company matures, consider scenarios for scaling operations and how to finance growth sustainably, avoiding liquidity crunches or over-leverage.

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