SOLITAIRE JV LLP

Executive Summary

SOLITAIRE JV LLP presents a financially healthy profile with strong liquidity and positive net assets supported primarily by member loans. Its lean operational footprint and micro-entity accounting status suggest a low-activity or holding structure with minimal complexity. Continued prudent cash management and review of internal financing arrangements are recommended to sustain and potentially improve financial wellness.

SOLITAIRE JV LLP - Analysis Report

Company Number: OC437599

Analysis Date: 2025-07-29 13:12 UTC

Financial Health Assessment of SOLITAIRE JV LLP (As of 31 March 2024)

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1. Financial Health Score: B

Explanation:
This score reflects a generally sound financial position with strong net current assets and positive net equity attributable to members. However, the presence of significant loans due to members and no employees indicates a very lean operational structure with potential liquidity timing risks. The absence of an audit and reliance on micro-entity accounting standards also suggest caution in the completeness of financial information.

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2. Key Vital Signs:

Metric	Value (£)	Interpretation
Current Assets	1,746,105	Exceptionally strong short-term resources, indicating very healthy cash or equivalents available.
Current Liabilities	71,670	Short-term obligations are low relative to current assets, showing good liquidity.
Net Current Assets (Working Capital)	1,674,435	Very healthy working capital, a vital sign of operational liquidity and buffer against shocks.
Creditors due after one year	977,172	Significant long-term liabilities, mostly loans from members, requiring monitoring.
Net Assets (Equity)	697,263	Positive net assets indicate solvency; the business owns more than it owes, a sign of financial health.
Members’ Loans	700,000	Large internal financing; while supportive, it may reflect dependency on member funds for capital.
Employees	0	No employees, indicating either a holding or investment structure or very minimal operational activity.

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3. Diagnosis:

• Healthy Cash Flow & Liquidity: The company shows symptoms of strong liquidity with very high current assets relative to current liabilities. This means it can readily meet short-term obligations without stress, an important indicator of financial "vitality."

• Capital Structure & Solvency: Net assets are positive and substantial, suggesting the business is solvent with an adequate capital cushion. However, a large portion of liabilities are loans from members, reflecting an internal financing structure rather than external debt. While this reduces external financial risk, it also suggests dependency on member funds.

• Operational Activity: The absence of employees and likely minimal operating costs suggest the LLP may be in a holding or investment phase or is a new entity with limited ongoing operations. This could be a "dormant" or low-activity LLP, which carries different risk profiles compared to active trading entities.

• Accounting & Reporting: The company qualifies as a micro-entity and uses the micro-entity regime under FRS 105, which simplifies reporting but provides less detailed financial information. There is no statutory audit, which limits the depth of assurance on financial accuracy.

• Governance & Control: Multiple members with significant voting rights indicate a distributed control structure, which can be positive for governance but requires clear communication and alignment among members.

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4. Recommendations:

• Maintain Strong Liquidity: Continue monitoring cash flow closely to maintain the very healthy working capital position. This is the "heartbeat" of the company’s financial health.

• Review Debt Structure: Consider formalising or reviewing the terms of member loans to ensure they are sustainable and appropriate. If the LLP plans to grow or seek external finance, reducing reliance on member loans could be beneficial.

• Evaluate Operational Model: If the LLP intends to expand, assess the need to hire employees or outsource services to support growth. Conversely, if it remains a low-activity entity, maintain efficient cost controls.

• Enhance Financial Reporting: Even though the LLP qualifies for micro-entity status, consider voluntarily adopting more detailed financial reporting if stakeholders or financing partners require it, to improve transparency and confidence.

• Governance Communication: Ensure all members maintain clear and documented agreements regarding control, profit sharing, and strategic decisions to prevent governance "illness" from misalignment.

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