SPACE LONDON LIMITED

Executive Summary

SPACE LONDON LIMITED is currently dormant with no trading activity or income, maintaining a modest positive net asset base. While the company shows no immediate financial distress, its reduced net assets indicate consumption of resources without replenishment. The business is stable but inactive, requiring strategic decisions to either reinitiate trading or manage costs carefully to preserve financial health.

SPACE LONDON LIMITED - Analysis Report

Company Number: 12501525

Analysis Date: 2025-07-29 12:08 UTC

Financial Health Assessment for SPACE LONDON LIMITED

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1. Financial Health Score: D (Dormant - Limited Activity)

Explanation:
The company is classified as dormant, showing no trading activity or income for the current and previous financial years. While it maintains positive net assets and working capital, these are modest and primarily reflect minimal financial movements rather than operational health. This score reflects a “resting state” rather than active business vitality, indicating no financial distress but also no growth or revenue generation.

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2. Key Vital Signs:

Metric	2023 (£)	2022 (£)	Interpretation
Current Assets	16,349	35,803	Healthy cash or equivalents but decreased significantly.
Current Liabilities	1,573	7,289	Very low short-term obligations, manageable.
Net Current Assets	14,776	28,514	Positive working capital indicates ability to cover short-term debts.
Net Assets (Shareholders Funds)	14,778	28,516	Positive equity base but has halved year-over-year, signaling reduced resources.
Share Capital	2	2	Minimal paid-up capital; typical for micro-entities.
Employees	2	2	Small headcount, no indication of operational expansion.
Trading Status	Dormant	Dormant	No income or expenditure recorded; company is inactive operationally.

Interpretation:
The company’s “vital signs” demonstrate a stable but inactive financial state. The positive net current assets and net assets suggest no immediate liquidity or solvency concerns. However, the significant reduction in current assets and net assets between 2022 and 2023 without any trading activity signals a potential depletion of resources, possibly through administrative expenses or asset disposals.

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3. Diagnosis:

The company is effectively in a "financial hibernation." It shows symptoms of dormancy: no turnover, no profit and loss activity, and minimal operational movement. The “healthy cash flow” is absent since there is no trading income, but there are no “symptoms of distress” such as liabilities exceeding assets or overdue filings.

The drop in net assets from £28,516 to £14,778 hints at some financial consumption, likely due to overheads or director-related expenses, which is typical in dormant entities maintaining legal compliance.

In medical terms, the company is currently asymptomatic but inactive, akin to a patient in remission without active disease but also without ongoing vitality or growth. There is no immediate risk of insolvency, but the company’s financial pulse is weak.

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4. Recommendations:

• Review Purpose and Strategy: Determine if dormancy aligns with strategic goals. If reactivation is planned, consider preparing a detailed business plan and funding strategy.

• Cost Management: Monitor and minimize overhead costs to preserve remaining net assets, especially if no trading is expected soon.

• Financial Forecasting: Develop cash flow forecasts to anticipate when and if additional capital injections or borrowing will be necessary.

• Compliance Maintenance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

• Explore Reactivation or Formal Closure: If no commercial activity is anticipated, evaluate pros and cons of reactivation versus formal closure to avoid ongoing administrative costs.

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