STARFISH CREW LTD

Executive Summary

STARFISH CREW LTD exhibits a stable financial position with strong liquidity and growing equity, typical of a healthy micro-entity in educational support services. While its financial "vital signs" are positive, attention to cash flow management and strategic investments will be crucial to sustain growth and mitigate operational risks. With prudent financial stewardship, the company’s outlook is favorable.

STARFISH CREW LTD - Analysis Report

Company Number: 13643483

Analysis Date: 2025-07-29 18:45 UTC

Financial Health Assessment for STARFISH CREW LTD (as of 30 September 2024)

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1. Financial Health Score: B

Explanation:
STARFISH CREW LTD demonstrates solid financial stability for a micro-entity in its early stages. It maintains a healthy balance sheet with positive net current assets and growing shareholders’ funds. The company shows strong liquidity positions but with slightly declining current assets compared to the previous year. Overall, the financial "vital signs" indicate a stable condition with a manageable level of liabilities, but there is room to improve operational efficiency and cash flow management.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	996	Low level of long-term assets, typical for a service-focused micro-entity.
Current Assets	57,004	Liquid assets mainly cash or equivalents; slight decrease from prior year (£63,884) suggests some cash outflow.
Current Liabilities	9,152	Short-term obligations are moderate and have decreased substantially from prior year (£21,152), indicating improved working capital management.
Net Current Assets	47,852	Strong positive working capital ("healthy cash flow reserves") indicating ability to cover short-term debts comfortably.
Shareholders’ Funds (Equity)	48,848	Equity has increased since 2021, reflecting retained earnings and capital contributions, signaling business growth.
Average Number of Employees	1	Very small workforce, typical for a micro-entity; cost structure likely lean.

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3. Diagnosis: Financial Health and Business Condition

"Patient" is in stable condition but still developing.

• Liquidity & Solvency: The company enjoys a "healthy cash flow" with current assets well exceeding current liabilities, resulting in strong net current assets. This means it can comfortably meet short-term obligations without stress.
• Asset Base: The low fixed asset base is typical for a service company providing educational support services, indicating low capital expenditure needs.
• Growth & Retention: Shareholders’ funds have grown steadily from £24,571 in 2021 to £48,848 in 2024, showing retained profits or new equity injections that strengthen the company’s financial base.
• Operational Efficiency: The slight reduction in current assets year-on-year could suggest either operational cash usage or investment in business activities. Monitoring cash flow trends will be important to ensure liquidity remains strong.
• Risk Factors: Minimal liabilities reduce financial risk. However, the company’s dependence on a single director and limited workforce may pose operational risks if not managed.

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4. Recommendations: Path to Improved Financial Wellness

• Enhance Cash Flow Monitoring: Maintain rigorous tracking of cash inflows and outflows to prevent unexpected liquidity crunches. Aim to reverse the slight decline in current assets.
• Diversify Revenue Streams: Consider expanding client base or service offerings in educational support to increase turnover and mitigate reliance on a narrow market.
• Invest in Technology or Training: Given the modest fixed assets, strategic investment in technology or staff training could improve productivity and competitive advantage.
• Strengthen Governance: With one director and two significant controllers holding equal shares, formalize decision-making processes to ensure continuity and risk mitigation.
• Plan for Growth: As the company grows, consider scaling operational capacity carefully to avoid overextension of resources.
• Regular Financial Reviews: Conduct periodic financial health check-ups (quarterly or bi-annually) to detect any early "symptoms of distress" and take corrective action promptly.

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