SIMON BISHOP DESIGN LTD

Executive Summary

SIMON BISHOP DESIGN LTD shows strong financial health characterized by significant growth in liquidity and equity over the past year, reflecting solid business operations and cash management. The company is financially stable with healthy working capital but should monitor liabilities and operational dependencies as it grows. Implementing formal financial controls and planning for scalable growth will support ongoing financial wellness.

SIMON BISHOP DESIGN LTD - Analysis Report

Company Number: 13274155

Analysis Date: 2025-07-29 15:55 UTC

Financial Health Assessment: SIMON BISHOP DESIGN LTD (as of 31 March 2024)

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1. Financial Health Score: B

Explanation:
SIMON BISHOP DESIGN LTD demonstrates a solid and improving financial position for a micro-entity in the specialised design sector. The company has shown strong growth in net current assets and net assets over the past year, indicating healthy liquidity and an expanding equity base. However, the size and scale remain modest, and cash flow details or profitability metrics are not explicitly provided, so there is room to monitor operational performance closely.

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2. Key Vital Signs

Metric	2024 Value	2023 Value	Interpretation
Current Assets	£61,351	£12,471	Significant increase in liquid or short-term assets; strong liquidity.
Current Liabilities	£18,698	£4,522	Increase in short-term obligations, manageable relative to current assets.
Net Current Assets (Working Capital)	£42,653	£7,949	Healthy working capital growth, good short-term financial health.
Net Assets (Equity)	£42,178	£7,499	Strong equity base growth, indicating retained earnings or investment.
Share Capital	£1.00	£1.00	Minimal share capital typical for micro companies; majority of equity is retained profits.
Average Employees	1	1	Micro business scale with a single employee (likely the director).
Dividends Paid	£30,000 (2024)	£0 (2023)	Director dividend payments commenced, suggesting profitability or available cash.

Interpretation:
The company exhibits "healthy cash flow" signs through increasing current assets and working capital, maintaining a strong liquidity position to cover short-term liabilities. The increase in dividends paid to the director signals positive profitability or cash availability. The company maintains a low overhead with only one employee, which can be an advantage for controlling costs but may limit operational scalability.

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3. Diagnosis

Overall Financial Condition:
SIMON BISHOP DESIGN LTD is in a healthy financial state for a micro-sized private limited company. The substantial growth in net assets and working capital over the last financial year is a positive symptom indicating successful business operations and prudent financial management. The company benefits from a strong liquidity position, which reduces the risk of cash flow distress. The stable number of employees suggests focused operations, consistent with specialised design activities.

Potential Symptoms to Monitor:

• The increase in current liabilities, while currently manageable, should be monitored to avoid any future liquidity constraints.
• Absence of detailed profitability or cash flow statements means the "internal health" of operations (e.g., profit margins, income stability) is not fully visible.
• Reliance on a single director-employee can be a bottleneck or risk if the business grows or experiences disruptions.

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4. Recommendations

To Improve Financial Wellness and Sustain Growth:

• Maintain or Improve Liquidity:
  Continue prudent management of current assets versus liabilities to maintain a comfortable working capital buffer. Avoid overextending short-term liabilities as the company scales.

• Profitability Monitoring:
  Prepare or review profit and loss statements regularly to ensure that profitability supports dividend payments and reinvestment needs. Consider budgeting and forecasting to anticipate future cash flow cycles.

• Diversify Operational Capacity:
  Explore opportunities to grow the team or outsource specialized functions to reduce reliance on a single individual, improving business resilience.

• Formalize Financial Controls:
  Even as a micro-entity, implement basic financial controls such as cash flow forecasts, expense tracking, and contingency planning for unexpected expenses or downturns.

• Plan for Growth:
  If growth is anticipated, consider whether the micro-entity accounting regime remains appropriate or if transitioning to small company accounts with more comprehensive reporting would benefit stakeholders.

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