SIMPLY SENSORY LTD

Executive Summary

Simply Sensory Ltd shows stable but minimal financial health typical of a newly incorporated micro-entity with positive working capital and net assets. While no symptoms of distress are present, the company’s financial foundation is fragile due to limited operational scale and resources. Strengthening liquidity, expanding operations, and maintaining compliance will be key to improving future financial vitality.

SIMPLY SENSORY LTD - Analysis Report

Company Number: 14686049

Analysis Date: 2025-07-29 14:55 UTC

Financial Health Assessment for SIMPLY SENSORY LTD (as of 28 February 2024)

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1. Financial Health Score: C

Explanation:
Given the company's very recent incorporation (less than 1 year old) and its micro-entity status, the financial data is limited. The company shows positive net current assets and net assets, indicating a stable but very modest financial position. However, the low absolute figures and lack of operational history mean the company is in an early developmental stage—financially stable but with limited resources and unproven cash flow generation. Hence, a grade of C reflects a stable but nascent financial condition, with room for growth and improvement.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£1,030	Very limited liquid resources (cash, receivables).
Current Liabilities	£720	Short-term obligations are low but significant relative to assets.
Net Current Assets	£310	Positive working capital ("healthy cash flow buffer"), but minimal margin.
Net Assets (Equity)	£310	Company equity is positive, indicating solvency at this early stage.
Employee Count	0	No employees yet, implying limited operational activity.
Company Age	~1 year	Very early phase of business lifecycle.
Filing Status	Up to date	No overdue filings, indicating good compliance and corporate governance.
Directors & Control	2 directors, shared control	Clear leadership structure with balanced control.
Industry (SIC 88100)	Social work activities without accommodation	Sector typically involves service delivery and social impact.

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3. Diagnosis

• Symptoms of Distress: None apparent. The company has no signs of financial distress such as negative net assets or liquidity shortfalls.
• Symptoms of Growth Potential: Limited financial data and no employees suggest the company is in a start-up or pre-operational phase. The positive net current assets, albeit small, show some initial capital buffer to meet short-term commitments.
• Underlying Business Health: The company's financial "vital signs" indicate a stable foundation, but the very low asset base and absence of staff or operational scale mean the business has yet to build momentum. The directors have maintained compliance with statutory requirements, reflecting sound governance.
• Risk Factors: Limited operating history means the company’s ability to generate revenue, manage expenses, and scale is untested. The social work sector can be reliant on contracts and funding that may fluctuate, which could affect future financial health.

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4. Recommendations

• Increase Working Capital: Explore avenues to bolster cash reserves or receivables to enhance liquidity and provide a stronger operational cushion.
• Operational Development: Begin or expand service delivery activities, potentially hiring staff or contractors to build capacity and generate income.
• Monitor Cash Flow: Establish robust cash flow forecasting and management processes to detect and address any early signs of financial strain.
• Seek Funding or Grants: Given the social work sector involvement, investigate eligibility for grants, subsidies, or social enterprise funding to support growth.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Plan for Growth: Develop a detailed business plan with financial projections to guide strategy and attract potential investors or partners.

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Medical Analogy Summary:
SIMPLY SENSORY LTD is in the "neonatal" stage of business health—stable vital signs with no acute distress but limited reserves and untested endurance. Its financial "heartbeat" is steady but faint, requiring nurturing through increased capital and operational activity to grow stronger and more resilient.

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