RUBY WISBECH LTD

Executive Summary

Ruby Wisbech Ltd shows a strong financial foundation with positive net current assets and equity typical of a start-up micro-entity. While balance sheet metrics are healthy, the lack of profitability and cash flow data means operational risks are not yet fully visible. Focused financial controls and strategic planning will support sustainable growth and mitigate future risks.

RUBY WISBECH LTD - Analysis Report

Company Number: 15314874

Analysis Date: 2025-07-29 12:09 UTC

Financial Health Assessment of Ruby Wisbech Ltd

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1. Financial Health Score: B

Explanation:
Ruby Wisbech Ltd exhibits a solid foundational financial position typical for a micro-entity in its first year of trading. The company shows positive net current assets and net assets, indicating good initial capital structure and liquidity. However, the scale of operations is very modest, and limited financial history restricts a deeper trend analysis. The absence of profit and loss data restricts insight into operational profitability and cash flow health, so while the balance sheet looks sound, the full financial wellness picture is still developing.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	5,895	Indicates available cash or near-cash resources; healthy for a start-up.
Current Liabilities	1,120	Short-term debts are low, manageable relative to assets.
Net Current Assets (Working Capital)	4,775	Positive and sufficient to cover short-term obligations, a "healthy cash flow cushion."
Net Assets (Equity)	4,775	Reflects owner investment and retained earnings; no debt evident, showing a clean balance sheet.
Average Employees	2	Small team size consistent with micro-entity status.

Additional Observations:

• Company incorporated recently (Nov 2023), with first financial year ending Nov 2024 — limited operational history.
• Directors have strong control with 75-100% ownership and voting rights concentrated in two individuals, indicating tightly held governance.
• No audit required or conducted, complying with micro-entity reporting exemptions, but limits external assurance.
• Industry SIC code 56103 (Take-away food shops and mobile food stands) typically implies cash-intensive operations with relatively low fixed assets, consistent with current asset structure.

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3. Diagnosis: Financial Condition of Ruby Wisbech Ltd

Ruby Wisbech Ltd is in the early stages of its business lifecycle, akin to a patient just starting therapy. The balance sheet "vital signs" show no immediate "symptoms of distress"—current assets comfortably cover current liabilities, and net assets are positive. This suggests a stable "cardiovascular system" of the business with no liquidity crunch.

However, absence of profit and loss data means we cannot yet evaluate "metabolic health" — whether the company is generating sustainable profit or experiencing operational losses. Also, with only 2 employees and a small asset base, the company is vulnerable to market shocks or unexpected expenses, similar to a patient with a good pulse but limited reserves.

Governance is straightforward but concentrated, which can be both a strength (clear decision-making) and a risk (lack of diverse oversight). The company's compliance with filing deadlines and use of micro-entity reporting reduces administrative burden but limits financial transparency for external stakeholders.

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4. Recommendations: Steps to Improve Financial Wellness

1. Build Profitability Insight:

   • Prepare and maintain internal profit and loss statements even if not filing publicly. This will provide early warning of operational "symptoms" such as declining margins or rising costs.
   • Monitor cash flows closely, especially given the cash-centric nature of the takeaway industry.

2. Strengthen Financial Controls:

   • Establish simple but effective budgeting and forecasting processes to plan for seasonal fluctuations and unforeseen expenses.
   • Maintain a cash reserve as a "financial immune system" to withstand shocks.

3. Consider Growth Strategy:

   • Evaluate options to increase sales volume or diversify offerings to improve revenue stability.
   • Plan for gradual investment in fixed assets or technology to improve operational efficiency without jeopardizing liquidity.

4. Governance and Risk Management:

   • Though ownership is concentrated, consider informal advisory support to broaden oversight and reduce risk of decision-making blind spots.
   • Keep directors informed on compliance obligations and emerging financial management best practices.

5. Prepare for Future Reporting:

   • As the company grows beyond micro-entity thresholds, prepare to transition to more comprehensive financial reporting and potentially audit requirements. Early preparation will ease compliance burdens.

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Executive Summary

Ruby Wisbech Ltd presents a stable and healthy financial position for a recently incorporated micro-entity, with positive working capital and net assets indicating good liquidity and capital structure. However, limited financial history and absence of profitability data mean operational risks remain unquantified. Careful attention to cash flow management, profitability tracking, and governance will be key to sustaining financial wellness as the business grows.