RICHIE’S MOBILE TYRE SERVICE LTD

Executive Summary

RICHIE’S MOBILE TYRE SERVICE LTD shows a stable and healthy financial position for a newly established micro-business, with positive net assets and working capital indicating good short-term liquidity. While the company is small and early in its lifecycle, its financial foundations are sound, and prudent management can foster growth and resilience. Continued focus on cash flow management and strategic investment will support ongoing financial wellness.

RICHIE’S MOBILE TYRE SERVICE LTD - Analysis Report

Company Number: 14723571

Analysis Date: 2025-07-20 12:06 UTC

Financial Health Assessment for RICHIE’S MOBILE TYRE SERVICE LTD

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1. Financial Health Score: B

Explanation:
RICHIE’S MOBILE TYRE SERVICE LTD demonstrates solid financial footing for a newly incorporated micro-entity. The company shows positive net assets and working capital, indicating a generally "healthy cash flow" and ability to meet short-term obligations. However, the business is in its infancy with a limited asset base and minimal operational history, which tempers the score from an A to a B. This reflects a stable start with room to grow and strengthen financial resilience.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	3,969	Small but appropriate for a start-up in vehicle maintenance. Represents investment in equipment/tools essential for operations.
Current Assets	2,646	Cash and receivables available to cover short-term needs. Modest, but positive.
Current Liabilities	1,881	Debts due within one year. Manageable relative to current assets.
Net Current Assets (Working Capital)	765	Positive working capital indicates the company can cover short-term liabilities and has a buffer for operational expenses.
Accruals and Deferred Income	1,200	Represents income received in advance or expenses accrued; normal for service businesses.
Net Assets (Shareholder Funds)	3,534	Positive equity base, showing that assets exceed liabilities, signaling financial stability.
Number of Employees	1	Sole director/operator, typical for micro businesses, but impacts capacity for scaling.

Interpretation:
The company’s "vital signs" reflect a balanced financial state with no immediate liquidity distress. The positive net current assets ("healthy cash flow") are a reassuring symptom of operational sustainability. The retained earnings and equity show the company is not burdened by debt beyond its means.

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3. Diagnosis

RICHIE’S MOBILE TYRE SERVICE LTD is in the early stages of development and, based on the first year’s financials, is showing signs of "good health" for a micro-business. The positive net assets and working capital indicate sound financial management and the ability to meet obligations without strain. The limited size of fixed assets and modest current assets are typical for a start-up service provider in vehicle maintenance and tyre services.

The "symptoms of distress" such as overdue filings, negative working capital, or excessive liabilities are absent. The single director/owner has full control, which simplifies decision-making but also concentrates risk.

Given the company's micro-entity status, exemption from audit has been appropriately applied, and statutory compliance is up to date, supporting operational legitimacy.

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4. Recommendations

• Build Cash Reserves: While current cash flow appears adequate, increasing cash reserves will provide a buffer against unexpected expenses or seasonal fluctuations.
• Monitor Working Capital: Continue to maintain positive net current assets to avoid liquidity crunches as the business grows.
• Plan for Growth: Consider incremental investment in assets or staffing to expand service capacity and market reach.
• Maintain Rigorous Bookkeeping: As the company grows, ensure accurate and timely accounting to support financial decisions and compliance.
• Explore Financing Options: If growth requires capital, investigate small business loans or grants targeted at start-ups in the automotive sector.
• Risk Management: As a sole director, consider personal risk exposure and explore insurance or legal structures to mitigate personal liability.
• Regular Financial Reviews: Conduct periodic financial health checks (quarterly or bi-annually) to catch early warning signs of distress.

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