STEPUP TRAINING LTD

Executive Summary

STEPUP TRAINING LTD maintains a stable financial position with positive working capital and equity, reflecting sound financial health for a micro-entity. While there is a noticeable reduction in current assets in the latest year, the company remains well-positioned to cover short-term liabilities. Continued focus on cash flow management and gradual reserve building will strengthen resilience and support future growth.

STEPUP TRAINING LTD - Analysis Report

Company Number: 13482004

Analysis Date: 2025-07-29 16:27 UTC

Financial Health Assessment for STEPUP TRAINING LTD

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1. Financial Health Score: B

Explanation:
STEPUP TRAINING LTD demonstrates a stable and positive financial position with consistent net current assets and net assets over the last three years. The company maintains positive working capital and shareholder equity, which indicates financial soundness typical for a micro-entity startup in its early years. The slight decline in current assets in 2024 versus 2023 is not alarming but worth monitoring. Overall, the company has a healthy balance sheet for its size and stage, but the modest scale and limited financial complexity suggest room for growth and improvement.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	4,006	9,022	Cash and short-term assets have decreased, could indicate lower liquidity or cash outflow.
Current Liabilities	877	5,716	Significant reduction in short-term debts, improving liquidity risk.
Net Current Assets	3,129	3,306	Positive net working capital, indicating the company can cover short-term obligations comfortably.
Net Assets (Shareholders' Funds)	3,129	3,306	Equity remains positive and stable; no significant erosion of capital.
Number of Employees	1	1	Micro-entity with very lean operations, reducing fixed overhead risk.

Interpretation:

• Healthy cash flow signs: Positive working capital with current assets exceeding current liabilities by approximately £3,000.
• Symptom of caution: Decrease in current assets by over 50% from 2023 to 2024 suggests reduced cash or receivables; while liabilities have also decreased, the net working capital is slightly lower. Monitoring cash flow trends is essential.
• Stable equity base: Consistent net assets indicate no accumulated losses or financial distress.

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3. Diagnosis

STEPUP TRAINING LTD presents the financial profile of a small, micro-sized company in the employment placement sector that is managing its finances conservatively. The company is not showing signs of distress such as negative working capital or shareholder deficits. The reduction in current assets in the latest year may indicate lower cash reserves or receivables, which could impact liquidity if the trend continues.

The company's single director and sole controlling shareholder model simplifies governance but also concentrates decision-making risk. Given the micro category, the financials are straightforward with no complex debt structures or long-term liabilities, which reduces financial strain risks.

Overall, the company appears financially "fit" with stable equity and sufficient short-term assets to meet current obligations. There are no symptoms of financial stress such as overdue filings, negative equity, or rising liabilities.

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4. Recommendations

• Cash Flow Monitoring: Implement tighter cash flow forecasting to anticipate any liquidity crunch, especially given the drop in current assets in 2024. Ensure timely collection of receivables and prudent management of payables.
• Build Reserves: Aim to gradually increase cash reserves to create a buffer against unforeseen expenses or market fluctuations.
• Growth Planning: Explore opportunities for scaling operations or diversifying income streams to improve asset base and shareholder funds over time.
• Governance: Although currently single director, consider formalizing governance practices such as periodic financial reviews and planning to mitigate concentration risk.
• Compliance Vigilance: Continue timely filings of accounts and confirmation statements to avoid penalties and maintain corporate health reputation.

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