STEEL CITY DANCE DISCS LTD

Executive Summary

STEEL CITY DANCE DISCS LTD exhibits strong financial health for a micro-entity with positive net assets and liquidity. The company is financially stable but remains small-scale and owner-operated. Continued prudent financial management and strategic growth planning will enhance its financial wellness going forward.

STEEL CITY DANCE DISCS LTD - Analysis Report

Company Number: 13264554

Analysis Date: 2025-07-20 17:45 UTC

Financial Health Assessment for STEEL CITY DANCE DISCS LTD

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1. Financial Health Score: B

Explanation:
STEEL CITY DANCE DISCS LTD demonstrates a sound and improving financial position for a micro-entity. The company shows healthy net current assets and positive net assets, which indicates good liquidity and solvency. However, the scale is modest, and there are no employees, suggesting a very lean operation. The financials show good foundational health but limited operational scale—hence a strong "B" rather than an "A."

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£12,907	Healthy cash or receivables base for a micro company.
Current Liabilities	£3,464	Manageable short-term obligations, well covered by current assets.
Net Current Assets	£9,443	Positive working capital; business is liquid and able to meet short-term debts.
Net Assets (Shareholders Funds)	£9,443	Indicates the company has positive equity and is solvent.
Share Capital	£3	Minimal capital invested, typical for small startups.
Employee Count	0	No employees, suggesting a very small or owner-operated business.
Filing Status	Up to date	No overdue filings; good compliance health.
Company Age	3 years	Relatively young company, early in lifecycle.

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3. Diagnosis

The "vital signs" of STEEL CITY DANCE DISCS LTD reveal a financially stable micro-entity with sound liquidity and solvency. The company has maintained positive net assets and working capital, which is a strong indicator of "healthy cash flow" and operational prudence. The jump in current assets from £3 in 2023 to £12,907 in 2024 is a positive symptom of growth or increased cash holdings.

Despite the small scale, the absence of employees and minimal share capital reflect a startup or owner-managed business without complex operations or financing structures. The company is compliant with filing deadlines, showing no administrative distress.

There are no warning signs such as negative net assets, overdue filings, or heavy liabilities. The financial "symptoms" are consistent with a company that is financially stable but still in an early growth phase.

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4. Recommendations

• Monitor Cash Flow Regularly: Although current assets are healthy, maintaining regular cash flow monitoring will prevent liquidity "symptoms of distress" especially as the company grows.
• Build Capital Base: Consider increasing share capital or retained earnings to provide a stronger buffer for future growth or unforeseen expenses.
• Plan for Operational Growth: If the business intends to expand, consider hiring staff and investing in fixed assets judiciously to support scaling without overextending finances.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties or administrative risks.
• Prepare for Future Financing: As the business matures, explore options for external financing or grants to support growth, especially given the sound financial base.
• Risk Management: Develop basic risk management strategies including contingency cash reserves and regular financial reviews.

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