SH PROJECT SUPPORT LIMITED

Executive Summary

SH PROJECT SUPPORT LIMITED demonstrates a sound financial position with positive working capital and net assets, reflecting good initial financial health for a new micro-entity. While the company shows no signs of distress, its young age and small scale suggest careful management and gradual growth are key to sustaining long-term financial wellness.

SH PROJECT SUPPORT LIMITED - Analysis Report

Company Number: 14719567

Analysis Date: 2025-07-29 19:02 UTC

Financial Health Assessment of SH PROJECT SUPPORT LIMITED

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1. Financial Health Score: B

Explanation:
For a newly incorporated micro-entity company, SH PROJECT SUPPORT LIMITED shows a solid start with positive net current assets and net assets, indicating a stable financial foundation. The absence of debt beyond short-term liabilities and positive shareholders' funds reflect a healthy balance sheet. However, due to limited financial history and relatively small scale, the score reflects cautious optimism rather than a full "A" grade.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£23,163	Adequate short-term resources to cover immediate needs
Current Liabilities	£5,486	Low short-term obligations, manageable within current assets
Net Current Assets	£17,677	Positive working capital, indicating healthy liquidity
Total Net Assets	£17,677	Indicates the company has positive equity or "net worth"
Shareholders' Funds	£17,677	Owner’s equity equal to net assets, showing no external debt
Employee Count	2	Small staff footprint, typical for a micro-entity
Company Age	~1 year	Newly established business, growth phase

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3. Diagnosis (What the Numbers Reveal)

• Healthy Cash Flow Indicator: Positive net current assets suggest the company currently has more liquid assets than immediate liabilities, akin to a patient with good hydration and stable vital signs.
• Low Leverage: Absence of significant debt or long-term liabilities reduces financial risk, much like a system free from chronic illness.
• New Business Stage: As a company incorporated in March 2023, it is in its infancy with limited financial history; this is comparable to a young patient whose long-term prognosis depends on ongoing care.
• Conservative Operations: Small employee base and micro-entity reporting reflect a lean operation, reducing overhead stress on finances.
• Owner Control: The sole director and 75-100% shareholder control indicate centralized governance, which can be positive for quick decision-making but may carry risk if diversity in management oversight is limited.

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4. Recommendations (Actions to Improve Financial Wellness)

• Maintain Positive Working Capital: Continue prudent cash management to keep liquidity in a "healthy range" ensuring smooth operations and ability to cover short-term obligations.
• Build Financial History: As the company grows, aim to file full accounts and consider audits to enhance credibility with lenders and investors.
• Diversify Revenue Streams: To avoid over-reliance on limited contracts or clients, diversify projects to build resilience.
• Consider Risk Management: Introduce basic risk controls and possibly appoint a finance officer or advisor to monitor financial health regularly.
• Plan for Growth: As activity expands, monitor key ratios such as profitability, return on assets, and gearing to avoid symptoms of financial distress.
• Governance: If feasible, add an independent director or advisor to provide broader oversight and reduce governance risk.

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Summary

SH PROJECT SUPPORT LIMITED currently exhibits a strong financial foundation with positive liquidity and net assets typical of a healthy micro-entity startup. The company's financial "vital signs" show no immediate distress, but as a young business with limited operating history, careful ongoing management is essential to sustain and improve financial wellness. Focused efforts on growth, diversification, and governance will support a positive prognosis for future financial health.