RIGHT PEOPLE (RECRUITMENT ACCOUNTANCY) LTD

Executive Summary

RIGHT PEOPLE (RECRUITMENT ACCOUNTANCY) LTD demonstrates strong financial health marked by solid liquidity and a growing equity base, indicating stability and prudent management. The company’s short-term assets comfortably cover liabilities, reflecting a healthy operational cash flow. However, the absence of profit and loss disclosures limits the full assessment of profitability, and improved transparency would enhance confidence in the company’s overall financial wellness.

RIGHT PEOPLE (RECRUITMENT ACCOUNTANCY) LTD - Analysis Report

Company Number: SC712763

Analysis Date: 2025-07-29 20:52 UTC

Financial Health Assessment: RIGHT PEOPLE (RECRUITMENT ACCOUNTANCY) LTD

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1. Financial Health Score: B+

Explanation:
The company demonstrates strong liquidity with a healthy cash balance and positive net current assets, indicating good short-term financial stability. Its shareholders’ funds (equity) have grown steadily, reflecting retained profits and sound capital accumulation. However, the absence of disclosed profit and loss data limits a full profitability assessment. Overall, the company appears financially robust but could improve transparency and broaden financial data reporting to achieve an "A" rating.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Cash at Bank	72,971	Very healthy cash reserves provide strong liquidity buffer.
Current Assets	81,310	Adequate short-term assets, mostly cash, supporting operations.
Current Liabilities	8,221	Low short-term debts, manageable and well-covered.
Net Current Assets	73,089	Positive working capital indicating good operational liquidity.
Shareholders’ Funds	73,089	Equity has grown steadily, showing retained earnings accumulation.
Debtors	8,339	Moderate receivables, manageable but should be monitored.
Turnover & Profit Data	Not disclosed	Limits assessment of operational profitability and margins.

Interpretation:
The company’s "vital signs" resemble a patient with a strong pulse and healthy blood pressure: cash flow is robust and liabilities are low, suggesting no immediate distress. However, the lack of reported turnover and profit figures is akin to missing key diagnostic tests — we know the patient seems stable, but cannot fully evaluate metabolic health.

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3. Diagnosis

Overall Financial Condition:
RIGHT PEOPLE (RECRUITMENT ACCOUNTANCY) LTD appears financially healthy with strong liquidity and growing equity base over the past three years. The steady increase in net current assets and shareholders’ funds suggests profitability and prudent financial management, despite the lack of explicit profit and loss disclosure.

Symptoms Analysis:

• Healthy cash flow: Cash reserves have grown from £61k in 2021 to nearly £73k in 2024, showing effective cash management.
• Low liabilities: Current liabilities are under 10% of current assets, indicating no liquidity crunch.
• Stable capital structure: Shareholder equity aligns closely with net current assets, indicating limited or no long-term debt burden.
• Limited transparency: Absence of income statement restricts assessment of operational efficiency and profitability margins.

The business shows no signs of financial distress or imbalance; it functions like a well-maintained patient with no evident symptoms of illness. However, the lack of declared profitability data is a "blind spot" that should be addressed to ensure complete fiscal health monitoring.

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4. Recommendations

1. Enhance Financial Reporting Transparency:

   • Provide full profit and loss statements in future filings to allow comprehensive assessment of profitability and operational efficiency.
   • This is akin to performing a full blood panel to rule out hidden conditions.

2. Maintain Strong Cash Management:

   • Continue prudent cash handling and ensure receivables (debtors) remain collectible to sustain liquidity.

3. Monitor Debtors Closely:

   • £8,339 in trade debtors should be managed to prevent overdue payments impacting cash flow.

4. Plan for Growth and Investment:

   • With a solid equity base, consider strategic reinvestment into business development or operational improvements to harness growth potential.

5. Compliance and Governance:

   • Keep director appointments updated and ensure compliance with Companies House filing deadlines to avoid penalties.

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Executive Summary