SHELDRICK TRADING LIMITED

Executive Summary

SHELDRICK TRADING LIMITED exhibits a robust financial profile with growing revenues, solid profitability, and healthy liquidity, indicating a stable and well-managed business. While the company’s lean asset structure suits its operational model, focusing on margin improvements and prudent investments could further enhance financial resilience and growth prospects. Overall, the business is in good health with no immediate financial distress symptoms.

SHELDRICK TRADING LIMITED - Analysis Report

Company Number: 12923637

Analysis Date: 2025-07-29 20:08 UTC

Financial Health Assessment for SHELDRICK TRADING LIMITED

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1. Financial Health Score: B

Explanation:
SHELDRICK TRADING LIMITED demonstrates a solid financial footing with positive operating profits, healthy liquidity, and strong net assets relative to liabilities. The company shows consistent growth in turnover and profitability, as well as stable working capital. However, the small scale of operations and relatively low fixed assets mean it has limited buffer against market shocks or unexpected expenses. Hence, a "B" grade reflects good health but leaves room for improvement to reach an "A" level.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Turnover	£174,108	Moderate revenue with steady growth from prior year (£149,188). Indicates healthy sales momentum.
Gross Profit	£80,130	Gross margin ~46%, showing effective cost control in production or procurement.
Operating Profit	£53,740	Operating margin ~31%, reflecting efficient management of overheads and strong core profitability.
Net Current Assets (Working Capital)	£53,073	Positive working capital indicates liquidity and ability to cover short-term obligations comfortably.
Cash at Bank	£58,900	Cash balance is strong relative to current liabilities (£38,061), indicating healthy cash flow.
Current Liabilities	£38,061	Manageable short-term debts with no overdue filings or penalties.
Net Assets / Shareholders’ Funds	£53,980	Solid equity base relative to liabilities, showing financial stability and retained earnings growth.
Fixed Assets	£907	Low fixed assets suggest a lean asset base suitable for the company's scale and industry.
Cost of Sales	£93,978	Represents ~54% of turnover, acceptable for a retail and service business.
Employees	0	No direct employees, possibly outsourced operations or directors managing activities.

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3. Diagnosis

SHELDRICK TRADING LIMITED presents with "healthy cash flow," evidenced by a strong cash balance and more than adequate net current assets to cover liabilities. The company’s "vital signs" show no symptoms of financial distress such as negative working capital, declining turnover, or operating losses.

• The steady increase in turnover and profitability is a positive symptom indicating growing market acceptance and operational efficiency.
• The company's low fixed asset base suggests a light capital structure, typical for a service and online retail operation, reducing risk of asset impairments.
• The absence of employees indicates a lean operating model, possibly relying on directors or contractors, which reduces fixed overhead costs.
• The company's shareholders’ funds primarily consist of retained earnings, showing the business is self-financing growth rather than relying on external equity injections.

No "symptoms" of financial strain such as overdue filings, excessive debt, or declining liquidity are present. The "pulse" of the business is stable and improving.

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4. Recommendations

To enhance financial wellness and potentially achieve an "A" grade, the following actions are recommended:

• Strengthen Asset Base Prudently: Consider investing selectively in fixed assets or technology that can improve operational efficiency or scalability without overextending capital.
• Cash Flow Management: Maintain strong cash reserves but explore opportunities to optimize working capital cycles further, such as better debtor collection or inventory turnover.
• Profit Margin Improvement: Analyze cost of sales and administrative expenses for efficiency gains to improve operating margins further.
• Growth Strategy: Leverage the positive momentum in turnover by expanding product lines or marketing efforts to increase sales volumes sustainably.
• Risk Management: Monitor liabilities closely and consider establishing contingency reserves to safeguard against unforeseen expenses.
• Governance and Reporting: Continue timely compliance with filing requirements to avoid penalties and maintain stakeholder confidence.
• Human Resources: Evaluate the need for staff or external expertise to support growth, balancing the benefits of expanded capabilities against increased overhead costs.

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