SOULECARE AND HELP LTD

Executive Summary

SOULECARE AND HELP LTD is financially stable with positive net assets and sufficient working capital to meet short-term obligations. However, reductions in asset levels and modest equity suggest cautious management is required to sustain growth and liquidity. Strengthening cash flow and careful debt monitoring will improve resilience and support ongoing operations in the competitive care sector.

SOULECARE AND HELP LTD - Analysis Report

Company Number: 13789226

Analysis Date: 2025-07-20 16:49 UTC

Financial Health Assessment of SOULECARE AND HELP LTD

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1. Financial Health Score: B-

Explanation:
SOULECARE AND HELP LTD demonstrates a stable but modest financial condition typical of a micro-entity. The company maintains positive net assets and working capital, indicating fundamental financial viability. However, the relatively low asset base, declining fixed and current assets, and presence of long-term liabilities suggest some financial constraints and caution is warranted. Overall, the company is healthy but with signs that require monitoring and improvement to enhance resilience.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	3,139	Small but tangible investment in long-term assets, slightly declining from previous year.
Current Assets	6,867	Adequate short-term resources but reduced notably from prior year, indicating less liquidity.
Current Liabilities	5,298	Short-term obligations are significant but covered by current assets, showing positive working capital.
Net Current Assets (Working Capital)	1,569	Positive working capital ("healthy cash flow buffer"), though lower than last year.
Long-Term Liabilities	2,500	Fixed debt that the company must service; manageable but a financial "load" to consider.
Net Assets / Shareholders’ Funds	2,208	Equity base is positive, indicating the business is solvent and has accumulated value.
Employee Count	3	Small workforce consistent with micro-entity status, indicating a lean operational structure.

Interpretation of Vital Signs:
The company’s "vital signs" reveal a business that generates sufficient short-term resources to meet immediate debts, akin to a patient with a steady pulse but reduced energy reserves. The decline in current assets and fixed assets signals some contraction or reduced investment, which might limit growth. The presence of long-term liabilities is a symptom that warrants careful management to avoid financial strain.

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3. Diagnosis

SOULECARE AND HELP LTD is currently financially solvent and operationally stable with positive net assets and working capital indicating no immediate distress. The company’s micro-entity size and limited financial resources imply a cautious approach to expansion and spending. The slight decline in asset levels and working capital could be early "symptoms of fatigue" — possibly due to operational challenges or tighter cash flow.

The company’s control structure is concentrated, with one director holding significant control, which can be beneficial for quick decision-making but may also concentrate risk. The consistency in employee numbers and no overdue filings show good governance and administration.

Overall, the diagnosis points to a business in "good health" but with moderate financial reserves, requiring prudent cash flow management and strategic planning to avoid future liquidity issues.

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4. Recommendations

• Enhance Liquidity: Improve cash flow by accelerating receivables, managing payables prudently, or exploring short-term financing options to strengthen working capital beyond the current modest buffer.
• Asset Management: Investigate the reduction in fixed and current assets; consider whether asset reinvestment or cost control measures are needed to sustain operational capacity.
• Debt Monitoring: Maintain careful oversight of the £2,500 long-term liability to ensure timely servicing and avoid potential "financial stress" from interest or principal repayments.
• Diversify Control and Governance: While concentrated control can be efficient, introducing additional oversight or advisory roles may help mitigate risks associated with single-person control.
• Growth Planning: Develop a conservative growth strategy that aligns with available resources and market conditions in the residential care and health services sectors.
• Regular Financial Reviews: Conduct periodic financial health checks to monitor trends in liquidity, profitability, and solvency to catch early signs of financial distress.

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