SCRIBBLE INK STORY CONSULTANCY LTD

Executive Summary

SCRIBBLE INK STORY CONSULTANCY LTD exhibits a solid but slightly weakening financial position typical for a micro-entity, with declining cash and net assets in the latest year. While currently solvent and compliant, proactive cash flow management and cost control are recommended to maintain financial wellness and prevent potential liquidity issues. The company’s stable governance and compliance are positive indicators for ongoing business health.

SCRIBBLE INK STORY CONSULTANCY LTD - Analysis Report

Company Number: 13816118

Analysis Date: 2025-07-20 13:49 UTC

Financial Health Assessment of SCRIBBLE INK STORY CONSULTANCY LTD

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1. Financial Health Score: B

Explanation:
SCRIBBLE INK STORY CONSULTANCY LTD demonstrates solid financial footing for a micro-entity, maintaining positive net current assets and net assets over the past three years. However, a noticeable decline in liquidity and overall net assets in the latest year suggests early signs of financial strain. The company remains solvent with no overdue filings, but monitoring cash flow and working capital management is advisable to sustain health.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Current Assets	5,590	8,665	Decrease in liquid resources; potential cash flow tightening.
Current Liabilities	1,483	1,678	Slight reduction in short-term debts; manageable level.
Net Current Assets	4,107	6,987	Positive working capital but declining, signaling less buffer to cover short-term obligations.
Net Assets (Shareholders’ Funds)	4,107	6,987	Declining equity base shows erosion of retained earnings or increased expenses.
Average Number of Employees	1	1	Stable headcount consistent with micro-entity status.

Interpretation of Vital Signs:

• The "healthy cash flow" represented by current assets is diminishing, a symptom indicating the company should watch its liquidity carefully.
• Positive net current assets confirm the company can meet its short-term liabilities, but the shrinking margin suggests a need for caution.
• Stable employee numbers suggest controlled overheads, but the drop in net assets should be investigated for underlying causes such as reduced profitability or increased costs.

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3. Diagnosis

SCRIBBLE INK STORY CONSULTANCY LTD is currently financially solvent with no immediate distress signals. The company shows a symptom of financial contraction in 2023, with liquidity and net assets declining compared to prior years. This could be due to reduced revenue, increased costs, or investment in business activities not yet generating returns. The micro-entity status and limited scale mean cash reserves are modest and highly sensitive to operational changes.

The absence of overdue filings and director continuity indicate good compliance and stable governance. The company is likely in a stable but cautious phase, requiring attention to cash management and cost control to prevent further erosion of financial health.

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4. Recommendations

• Enhance Cash Flow Monitoring: Implement detailed cash flow forecasts to anticipate and manage liquidity needs proactively, avoiding future symptoms of distress.
• Cost Management: Review expense structure and identify non-essential costs to protect margins and net assets.
• Revenue Growth Strategies: Explore new client acquisition or service diversification to reverse declining asset trends and strengthen profitability.
• Maintain Compliance Vigilance: Continue timely filing of accounts and confirmation statements to avoid penalties and reputational risks.
• Financial Resilience Planning: Consider building a small cash reserve buffer to absorb shocks, given the company's micro size and relatively thin asset base.
• Regular Financial Review: Quarterly internal financial health checks to catch early warning signs and adjust strategy accordingly.

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