RIBBLE TECH TEST CENTRE LIMITED

Executive Summary

Ribble Tech Test Centre Limited exhibits a sound financial condition with strong liquidity and positive equity growth since inception. The company maintains a healthy working capital position, indicating good short-term financial stability, though fixed asset investment remains modest. To sustain and improve financial wellness, the business should focus on managing receivables, enhancing asset base, and preparing for growth with prudent risk management.

RIBBLE TECH TEST CENTRE LIMITED - Analysis Report

Company Number: 13367898

Analysis Date: 2025-07-29 17:38 UTC

Financial Health Assessment for Ribble Tech Test Centre Limited

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1. Financial Health Score: B

Explanation:
Ribble Tech Test Centre Limited demonstrates a solid foundation with positive net current assets and shareholder funds significantly improving from prior years. The company shows healthy working capital and cash reserves relative to its short-term liabilities, indicating good liquidity. However, as a relatively young business with modest scale and limited asset base, there is room to strengthen fixed assets and diversify financial stability. Overall, the company's financial "vital signs" suggest a stable condition but with some caution due to limited historical data and growing pains typical of early-stage enterprises.

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2. Key Vital Signs

Metric	Value (31 Oct 2024)	Interpretation
Current Assets	£63,839	Strong short-term asset base for obligations
Cash at Bank	£35,343	Healthy cash buffer supporting liquidity
Debtors (Receivables)	£19,496	Moderate outstanding customer payments, manageable risk
Current Liabilities	£42,824	Obligations due within one year, well covered by current assets
Net Current Assets	£21,015	Positive working capital indicates ability to meet short-term debts
Total Assets Less Current Liabilities	£26,585	Net asset value showing equity backing
Shareholders’ Funds (Equity)	£26,585	Equity capital has grown, reflecting retained earnings and investment
Fixed Assets (Plant & Machinery)	£5,570	Modest investment in tangible assets, depreciation in place
Employee Count	4	Small team, indicative of micro/small enterprise dynamics

Additional Notes:

• The company changed its name recently, which may indicate strategic repositioning or rebranding.
• The director, Mr. George Cocks, holds full control, ensuring streamlined decision-making but also concentration risk.
• The business operates in the sale of used cars and light motor vehicles, an industry sensitive to economic cycles and consumer confidence.

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3. Diagnosis: Financial "Health Check" Insights

• Liquidity Status: The company shows "healthy cash flow" with cash reserves covering 82% of current liabilities (£35,343 cash vs. £42,824 liabilities). This suggests the company can comfortably meet immediate obligations without distress.
• Working Capital Condition: Positive net current assets (£21,015) is a good "pulse" indicating operational liquidity and short-term financial health. This reduces risk of cash crunches or forced borrowing.
• Asset Structure: Fixed assets are low (£5,570), which is typical for service or retail businesses but may indicate limited long-term investment or reliance on leased premises/equipment.
• Equity Position: Shareholders’ funds have risen from £1 to £26,585 over the period, signaling accumulated retained earnings and potential profitability, a strong sign of financial resilience.
• Growth and Scale: The increase in debtors and creditors reflects higher business activity, but also requires vigilance to manage credit risk and supplier relationships.
• Risk Factors: The company’s single director and shareholder model centralizes control, which can be efficient but may also limit external oversight or capital access.
• Industry Sensitivity: The used car sales sector can face volatility; maintaining robust liquidity and flexible cost structures is essential.

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4. Recommendations: Prescription for Financial Wellness

• Enhance Asset Base: Consider strategic investment in fixed assets or technology to improve operational capacity and competitive positioning, while monitoring depreciation impact.
• Manage Receivables: Implement tighter credit control to reduce debtor days and improve cash conversion cycle, minimizing liquidity risks.
• Strengthen Equity Base: Explore options for external funding or retention of earnings to build equity cushion against market downturns.
• Diversify Control: If feasible, introduce additional directors or advisors to provide governance oversight and broaden expertise.
• Monitor Liabilities: Keep current liabilities in check, especially taxes and trade creditors, to avoid payment delays or penalties.
• Plan for Growth: Develop financial forecasting and budgeting to anticipate cash flow needs and capital expenditures aligned with business expansion.
• Risk Mitigation: Given industry cyclicality, maintain a contingency reserve and avoid over-reliance on single customer segments or suppliers.
• Regulatory Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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