SELSDON WAY DEV LTD

Executive Summary

SELSDON WAY DEV LTD is a very young micro-entity with minimal financial resources and an almost break-even balance sheet. While governance and compliance are sound, the company shows symptoms of financial fragility due to negligible working capital and equity. To improve financial health, the business should prioritize strengthening liquidity, increasing assets, and growing revenues to establish a more robust financial foundation.

SELSDON WAY DEV LTD - Analysis Report

Company Number: 14397508

Analysis Date: 2025-07-19 12:06 UTC

Financial Health Assessment Report for SELSDON WAY DEV LTD

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1. Financial Health Score: D (Needs Close Monitoring)

Explanation:
The company’s financial metrics indicate a very fragile economic condition. With almost negligible net assets (£2) and current assets barely exceeding current liabilities, the business shows symptoms of financial immobility and minimal operational scale. While there are no overdue filings or legal alerts, the micro-entity scale with near-zero working capital signals a precarious position. This warrants cautious monitoring and proactive financial management to avoid distress.

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2. Key Vital Signs

Vital Sign	Value	Interpretation
Current Assets	£1,411	Very low liquid and short-term assets; limited cash/resources
Current Liabilities	£1,409	Almost equal short-term debts; tight liquidity
Net Current Assets (Working Capital)	£2	Critically low working capital; minimal buffer for operations
Net Assets (Equity)	£2	Essentially no equity cushion; company is at break-even level
Shareholders’ Funds	£2	Reflects minimal retained earnings or capital injection
Number of Employees	1	Very small scale of operations
Filing Status	Up to date	No compliance issues; positive governance indicator
Company Age	~2 years	Early stage, may explain limited financial scale

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3. Diagnosis: Business Health Overview

The company is in its infancy (incorporated Oct 2022) and operates as a micro-entity in real estate management. Its financial “vital signs” strongly suggest a business that is just starting with minimal financial resources and no significant asset base. The almost zero net working capital highlights the “symptom” of financial vulnerability—there is practically no liquidity cushion to absorb shocks or fund growth.

Absence of overdue filings and timely compliance is a positive “sign” of good governance, but the financial data reveals a company that has not yet built financial strength or profitability. The minimal net assets indicate the business may be relying heavily on owner capital or external funding to cover liabilities and operations.

This is a typical “early stage” financial profile where the company is likely in setup or investment phase without substantive income generation or asset accumulation. The risk is that if cash inflows do not increase, the company could experience liquidity stress.

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4. Recommendations: Steps to Improve Financial Wellness

• Increase Working Capital: Seek to build cash reserves or short-term assets to create a healthy liquidity buffer. This may involve capital injection or improving receivables collection.
• Monitor Cash Flow Closely: Establish rigorous cash flow forecasting to anticipate shortfalls and avoid liquidity crises.
• Expand Asset Base: Invest in fixed or current assets to strengthen the balance sheet and support operational activities.
• Cost Control: With only 1 employee, keep overheads minimal but ensure operational efficiency.
• Revenue Growth: Focus on winning contracts or clients to increase turnover and profitability.
• Regular Financial Reviews: Conduct monthly financial health checks to detect early symptoms of distress.
• Prepare for Scaling: As the company grows, consider moving beyond micro-entity reporting for enhanced transparency and financing options.

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