SMUDGE IFA SUPPORT LIMITED

Executive Summary

SMUDGE IFA SUPPORT LIMITED demonstrates strong financial health with improving liquidity and net asset position, indicating effective cash flow management and growing equity. As a micro-entity, it operates leanly but has good potential for growth if resources and revenue are developed. Maintaining careful cash flow oversight and strategic investment will support continued financial wellness.

SMUDGE IFA SUPPORT LIMITED - Analysis Report

Company Number: 14119593

Analysis Date: 2025-07-29 18:13 UTC

Financial Health Assessment Report for SMUDGE IFA SUPPORT LIMITED

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1. Financial Health Score: B

Explanation:
The company shows strong growth in net assets and working capital between its first two years, indicating improving financial stability. However, as a micro-entity with a single employee and limited financial data, some caution is warranted. The healthy increase in equity and net current assets points to a sound financial position, but the scale and scope of operations remain small.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£62,488	Good increase, indicating improved liquidity and resource availability.
Current Liabilities	£37,578	Also increased, but manageable given asset growth.
Net Current Assets (Working Capital)	£24,910	Positive and increasing working capital is a sign of financial health and ability to meet short-term obligations.
Net Assets (Shareholders’ Funds)	£23,710	Increased from £5,472; indicates growth in retained earnings or capital injection—good equity base.
Average Number of Employees	1	Very lean operation, low fixed overheads but potential constraints on capacity.
Audit Status	Exempt	Micro-entity provisions; less regulatory scrutiny but also less detailed financial insight.

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3. Diagnosis

The company exhibits healthy financial "vital signs" with improving liquidity and net asset position. The rise in net current assets from £6,672 (2023) to £24,910 (2024) suggests the business has strengthened its short-term financial buffer, a crucial symptom of good cash flow management and operational efficiency.

The shareholders' funds have more than quadrupled, reflecting either retained profits or additional capital contributions. This bolsters the company’s resilience against financial stress.

The business operates as a micro-entity with a single employee (the director), which means costs are likely minimal, but growth potential may be limited unless investment in resources occurs.

At this stage, there are no obvious symptoms of financial distress such as negative working capital, excessive liabilities, or declining equity. The company’s governance appears stable, with clear control by key shareholders.

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4. Recommendations

To maintain and enhance financial wellness, consider the following actions:

• Cash Flow Monitoring: Continue to monitor cash flow closely to avoid liquidity crunches, particularly as the company grows.
• Revenue Growth Strategy: Explore opportunities to increase turnover to transition from micro to small category, unlocking benefits of scale.
• Expense Management: Keep overheads and liabilities under control as business expands.
• Financial Reporting: Although exempt from audit, consider voluntary financial reviews or preparing management accounts for better insight.
• Succession Planning: Given the concentrated ownership and control, consider plans to diversify management or ownership to reduce operational risk.
• Investment in Capacity: Evaluate the need for additional staff or resources to support growth ambitions.
• Compliance Vigilance: Ensure all filings remain timely to avoid penalties.

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