RUBY REGENERATION LTD

Executive Summary

RUBY REGENERATION LTD is financially healthy, demonstrating strong liquidity and solid equity typical for a micro-entity consultancy. While minor declines in net assets warrant monitoring, the company shows no signs of financial distress and maintains good governance. Focused attention on cash flow management, growth planning, and diversification will support continued financial wellness.

RUBY REGENERATION LTD - Analysis Report

Company Number: SC679140

Analysis Date: 2025-07-29 12:42 UTC

Financial Health Assessment for RUBY REGENERATION LTD

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1. Financial Health Score: B

Explanation:
RUBY REGENERATION LTD demonstrates stable and solid financial health typical for a micro-entity. The company maintains strong net current assets and positive net assets, indicating good liquidity and solvency. However, minor decreases in net assets and current assets in the most recent year suggest some caution. The absence of significant debt and consistent shareholder equity reflect a generally healthy financial position, but growth and profitability details are limited due to micro-entity reporting requirements.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	1,623	Very low long-term investment, typical for a consultancy micro-business.
Current Assets	105,270	Healthy level of liquid assets (cash, receivables), indicates good short-term financial flexibility.
Current Liabilities	29,578	Manageable short-term debts, well covered by current assets.
Net Current Assets	79,825	Positive working capital; "healthy cash flow" buffer for day-to-day operations.
Total Assets less Current Liabilities	81,448	Indicates company can cover short-term debts and has some residual value from assets.
Net Assets/Shareholders' Funds	81,341	Strong equity base relative to company size, showing retained earnings or capital contribution.
Share Capital	10	Nominal capital, typical for micro-companies; main value lies in retained reserves.
Employee Count	1	Single-person operation, low overheads but reliance on director's capacity.

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3. Diagnosis

Symptoms Analysis:

• The company’s financial "vital signs" indicate it is not under immediate distress. The strong positive working capital suggests it can comfortably meet short-term obligations, a key indicator of financial wellness.
• Net assets have slightly decreased from £83,796 (2022) to £81,341 (2023), which may indicate either a minor loss or distribution to owners, but the change is not alarming.
• Fixed assets remain minimal, consistent with a service-based consultancy business that relies on intellectual capital rather than physical assets.
• The company’s micro-entity status limits the granularity of financial data, making it difficult to assess profitability trends or cash flow dynamics in detail.
• The sole director owns 75-100% shares and controls the company, indicating concentrated decision-making power; this can be efficient but also may pose risks if key-person dependency is high.
• No overdue filings or signs of financial reporting non-compliance, which is a positive governance sign.

Overall Diagnosis:
RUBY REGENERATION LTD exhibits the "symptoms of good financial health" typical for a small, owner-managed consultancy. It has a "healthy cash flow" position with ample liquidity to cover liabilities and a solid equity cushion. The company shows no signs of distress or impending financial difficulty. However, the slight reduction in net assets could be a signal to monitor profitability and cost management closely.

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4. Recommendations

• Monitor Cash Flow and Profitability: Even though the company shows strong net current assets, maintaining close oversight on cash inflows and outflows is essential, especially in the consultancy sector where client payments can be irregular.
• Build Reserves or Capital: Consider strategies to enhance retained earnings or inject additional capital to buffer against unforeseen business shocks or to fund growth initiatives.
• Diversify Client Base: To reduce key person risk and dependency, expanding the client portfolio or service offerings could improve financial resilience.
• Prepare for Growth: As a micro-entity, the company should plan for scalability, ensuring systems and financial controls can handle increased business volume without stress.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Consider Succession Planning: Given the sole director ownership, planning for management continuity can safeguard the company’s future stability.

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