TAUGHEY ROAD LAND MANAGEMENT LTD

Executive Summary

TAUGHEY ROAD LAND MANAGEMENT LTD demonstrates healthy early-stage financial indicators with positive liquidity and equity growth. The company is stable but small, with opportunities to scale operations and strengthen financial resilience through strategic growth and compliance diligence.

TAUGHEY ROAD LAND MANAGEMENT LTD - Analysis Report

Company Number: NI686540

Analysis Date: 2025-07-29 19:36 UTC

Financial Health Assessment of TAUGHEY ROAD LAND MANAGEMENT LTD

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1. Financial Health Score: B

Explanation:
The company exhibits a positive net asset position with steady growth over its first two years, indicating a healthy start. However, the scale is very small (micro-entity level) with limited financial activity and no employees, so while the financials are stable, the overall business scale and operational complexity remain minimal. This restricts grading to a B rather than A, reflecting solid basics but early developmental stage.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£2,507	Healthy increase from previous £24; good liquidity buffer
Current Liabilities	£23	Very low short-term debts, manageable obligations
Net Current Assets	£2,484	Positive working capital ("healthy cash flow position")
Net Assets (Shareholders Funds)	£2,064	Positive equity, indicates ownership value retention
Accruals and Deferred Income	£420	Small amount of deferred income, reasonable for size
Average Employees	NIL	No staff, minimal operational complexity

Interpretation:
The company shows "vital signs" of financial stability: adequate liquidity, negligible debts, and positive equity growth. The marked increase in current assets from £24 to £2,507 signals successful asset accumulation or cash inflow, which is a positive symptom of business activity. The low liabilities and accruals suggest no immediate financial distress.

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3. Diagnosis

Business Health:
TAUGHEY ROAD LAND MANAGEMENT LTD is in the early stages of operation, with a sound financial foundation. The director's sole control (75-100% ownership) combined with no employees implies a tightly managed entity with limited complexity. The micro-entity accounting approach and exemption from audit confirm a small-scale operation.

The balance sheet shows no signs of distress such as negative net assets or excessive liabilities. The increase in net assets from £24 to £2,064 over two years is a good indicator of value creation or capital injection.

Underlying Health Insights:

• Liquidity: The company’s cash or current assets exceed short-term liabilities by a wide margin, suggesting a "healthy cash flow" position and no immediate liquidity risk.
• Leverage: Virtually no debt burden, indicating low financial risk but also possibly limited external financing or growth investment.
• Operational Scale: No employees and small asset base indicate very limited operations or possibly holding/management of property assets without active trading.

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4. Recommendations

To improve financial wellness and prepare for growth:

1. Monitor Working Capital: Maintain the positive net current assets to avoid liquidity crunches as operations scale.
2. Explore Growth Opportunities: Consider strategic investments or partnerships to expand beyond micro-entity scale to improve business resilience and revenue.
3. Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
4. Consider Audit Preparation: As the company grows beyond micro thresholds, prepare for audit and enhanced financial reporting to improve transparency for stakeholders.
5. Build Operational Capacity: If expansion is planned, consider hiring or contracting staff to support operational activities and reduce reliance on the sole director.
6. Review Deferred Income: Ensure that deferred income recognition aligns with cash flow and contractual obligations, to avoid surprises in future accounting periods.

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Executive Summary

TAUGHEY ROAD LAND MANAGEMENT LTD shows a solid financial foundation with positive net assets and strong liquidity for a micro-entity in its initial years. The absence of liabilities and positive growth in current assets suggest no immediate financial distress. To move from a stable start to a growth phase, the company should focus on operational expansion and maintaining robust financial controls.