Company Number: SC751982

Analysis Date: 2025-07-20 17:16 UTC

Financial Health Assessment Report: TEAM ESTATE LTD

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1. Financial Health Score: B

Explanation:
TEAM ESTATE LTD shows a generally sound financial position typical for a newly incorporated micro-entity within the real estate agency sector. The company maintains positive net assets and a comfortable working capital buffer, indicating financial stability. However, the relatively low net asset base and small scale of operations suggest limited financial resilience to shocks. Hence, a “B” grade reflects a healthy but still developing financial condition.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Fixed Assets	£1,944	Very modest investment in long-term assets, typical for a service-oriented micro-company.
Current Assets	£37,139	Adequate short-term resources, mostly likely cash and receivables — a healthy “cash flow pulse”.
Current Liabilities	£32,105	Short-term obligations are significant but covered by current assets, suggesting reasonable liquidity.
Net Current Assets (Working Capital)	£5,034	Positive working capital indicates the company can cover short-term debts without stress — a key “vital sign” of operational health.
Net Assets	£3,604	Small but positive equity base, showing the company’s net worth remains above zero.
Provisions & Accruals	£3,374 (Combined)	Represents anticipated expenses/liabilities, highlighting prudent financial management but also some “deferred burdens”.
Number of Employees	1	Very lean operation, typical for a micro entity, minimizing fixed overheads.

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3. Diagnosis

TEAM ESTATE LTD is in the early stage of its lifecycle, having been incorporated in December 2022 and filing its first full micro-entity accounts for the year ended December 2023. The company’s financial “vital signs” indicate:

• Healthy liquidity: Positive net current assets show the company has sufficient short-term resources to meet immediate obligations, a sign of “healthy cash flow”.
• Modest scale: Fixed assets and net assets are small, consistent with a lean, service-driven real estate agency.
• Sustainable operations: The presence of provisions and accruals suggests the company is anticipating future costs and managing its financial obligations prudently.
• Stable ownership and governance: The company has a clear control structure with significant shareholders and several directors with aligned interests, which supports stable management.

Symptoms of financial distress such as negative working capital, excessive liabilities, or shareholder equity depletion are not present at this stage. However, the small equity base means the company has limited buffer against adverse economic conditions or unexpected expenses.

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4. Recommendations

To enhance financial wellness and build resilience, TEAM ESTATE LTD should consider:

• Strengthen Equity Base: Retain profits or seek additional capital injection to build net assets, providing a stronger shock absorber against future volatility.
• Monitor Working Capital Closely: While currently positive, ensure receivables and payables are managed efficiently to maintain liquidity.
• Plan for Growth: Invest in scalable resources (potentially fixed assets, technology) to support expansion beyond the micro scale when revenue growth allows.
• Maintain Prudent Provisions: Continue recognizing future liabilities accurately to avoid unexpected financial strain.
• Regular Financial Reviews: Given the early stage, frequent reviews of financial health indicators will help catch emerging risks early.
• Explore Audit or Assurance: Though exempt, obtaining voluntary audit or external review could enhance stakeholder confidence as operations expand.

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