SAFE HOME CAPITAL LIMITED

Executive Summary

SAFE HOME CAPITAL LIMITED demonstrates a sound financial position for a micro-entity, with strong liquidity and positive net assets, indicating a healthy financial "pulse." While the company is stable, attention to managing long-term liabilities and careful growth planning will be key to sustaining and improving financial wellness. Overall, the firm is financially solvent and well-positioned to maintain operational health in the near term.

SAFE HOME CAPITAL LIMITED - Analysis Report

Company Number: 13481160

Analysis Date: 2025-07-29 17:44 UTC

Financial Health Assessment Report for SAFE HOME CAPITAL LIMITED

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1. Financial Health Score: B

Explanation:
SAFE HOME CAPITAL LIMITED exhibits a generally healthy financial position for a micro-entity in its early years of operation. The company shows positive net current assets and net assets, indicating a stable capital base and liquidity. However, a modest level of long-term liabilities and limited asset base suggest room for strengthening the financial structure. Overall, the company appears solvent and operationally stable but should monitor growth and leverage carefully.

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2. Key Vital Signs

Metric	2025 (£)	Interpretation
Current Assets	25,906	Indicates available short-term resources (cash, receivables). A healthy cash flow indicator for a micro business.
Current Liabilities	16	Very low short-term debts, suggesting good liquidity and ability to meet immediate obligations.
Net Current Assets	25,890	Positive working capital, a sign of operational liquidity and short-term financial health.
Creditors due after one year	6,000	Some long-term liabilities present; manageable but should be monitored to avoid over-leverage.
Net Assets	19,890	Represents shareholder equity; positive and stable, indicating the company’s net worth is sound.
Shareholders Funds	19,890	Equity provided by owners; reflects retained earnings or capital injection.
Employee Count	1	Very small operational scale; typical for micro-entities.

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3. Diagnosis: Financial Health Analysis

• Liquidity (Healthy Cash Flow): The company’s net current assets (£25,890) are significantly positive, a vital sign of strong liquidity. This suggests SAFE HOME CAPITAL LIMITED can comfortably meet short-term obligations without financial strain. The very low current liabilities (£16) reinforce this, indicating minimal immediate debts or payables.

• Solvency (Balance Sheet Strength): The net assets and shareholders’ funds stand at £19,890, confirming that the company’s total assets exceed its liabilities. This “net worth” represents a healthy buffer against insolvency risks. The presence of long-term creditors (£6,000) is a symptom of some financial obligations extending beyond one year, but this is not excessive given the company size and equity base.

• Growth & Scale: The company has just one employee and is categorized as a micro-entity, reflecting a lean operational structure. This is consistent with early-stage or small-scale consultancy or capital management activities, aligned with its SIC codes.

• Accounting Practices & Compliance: The company complies with FRS 105 micro-entity reporting standards and is exempt from audit, which is typical for its size. Timely filing of accounts and confirmation statements indicates good governance and regulatory compliance.

• Ownership & Control: The single director and sole significant controller (holding 75-100% shares and voting rights) simplifies decision-making but concentrates operational risks. It is essential that governance practices ensure transparency and mitigate risks associated with single-person control.

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4. Recommendations: Path to Improved Financial Wellness

1. Strengthen Capital Base:
   Consider gradually increasing shareholder equity or retained earnings by reinvesting profits to build resilience against unforeseen expenses or growth investments.

2. Manage Long-Term Liabilities:
   Monitor and plan repayment or refinancing of the £6,000 long-term creditors to avoid potential liquidity crunches in the future.

3. Diversify Operations & Revenue:
   Explore expanding client base or service offerings aligned with SIC codes (management consultancy, financial intermediation auxiliary services) to enhance income streams and reduce dependency on limited contracts.

4. Maintain Robust Cash Flow Controls:
   Continue close monitoring of cash flows, especially given the small operational scale, to ensure the company maintains a healthy "cash flow pulse" and can meet operational needs without stress.

5. Governance & Risk Management:
   Although single control simplifies decisions, implement documented internal controls and consider external advisory input to mitigate risks from centralized control.

6. Prepare for Growth:
   If expansion is planned, prepare for scaling up operations by assessing staffing needs, capital requirements, and potential financing options early.

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