THAT SOCIAL MEDIA GIRL LTD

Executive Summary

THAT SOCIAL MEDIA GIRL LTD exhibits solid financial health characterized by strong liquidity and positive net assets, reflecting stable and conservative financial management typical of a micro business. While cash reserves are robust, limited asset investment and stable net assets suggest potential for growth acceleration through strategic reinvestment. Focusing on operational efficiency, growth strategy, and risk management will enhance long-term financial wellness.

THAT SOCIAL MEDIA GIRL LTD - Analysis Report

Company Number: 12448503

Analysis Date: 2025-07-29 19:15 UTC

Financial Health Assessment Report for THAT SOCIAL MEDIA GIRL LTD

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1. Financial Health Score: B

Explanation:
The company demonstrates a generally sound financial position with strong liquidity and positive net assets, reflecting solid working capital management and shareholder equity. However, limited growth in net assets over recent years and modest fixed asset investment suggest a cautious approach to expansion. The score B indicates good financial health with room for improvement in operational efficiency and asset utilization.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	102,025	Healthy level of assets readily convertible to cash, primarily cash itself.
Cash on Hand	90,719	Very strong cash position, indicating excellent liquidity and ability to meet short-term needs.
Debtors	11,306	Moderate receivables, manageable given company size and cash reserves.
Current Liabilities	29,364	Reasonable short-term obligations, comfortably covered by current assets.
Net Current Assets	72,661	Strong working capital, a vital sign of good short-term financial health.
Net Assets (Equity)	72,966	Positive net worth, showing the company’s assets exceed liabilities by a good margin.
Share Capital	1	Minimal share capital, typical for a small private limited company.
Fixed Assets	305	Very low fixed asset base, suggesting limited investment in long-term assets.
Profit & Loss Reserve	72,965	Retained earnings appear stable, indicating consistent profitability or capital injection.
Employee Count	1	Micro-business scale, which limits operational complexity but also growth potential.

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3. Diagnosis

Overall Financial Condition:
That Social Media Girl Ltd presents as a micro-sized private limited company operating in the advertising and IT consultancy sectors. The financial “vital signs” reveal a robust liquidity position—akin to a patient with a strong pulse and steady blood pressure—signifying the company can comfortably meet its immediate financial obligations without distress.

The company’s cash reserves form the bulk of its current assets, which is a positive symptom indicating healthy cash flow or conservative cash management. The net current assets and net assets are comfortably positive, reflecting a stable capital structure and absence of solvency issues.

However, the company shows very low investment in tangible fixed assets, indicating a business model likely focused on service delivery without significant physical asset requirements. This can be typical for consultancy and advertising agencies but may limit scalability if the business intends to expand.

The stable net assets over the past few years suggest limited growth in retained earnings or capital, which could indicate either a steady but non-expansive business model or the possibility of underutilized financial capacity for growth investments.

The single director and sole shareholder structure simplifies governance but could present risks related to succession or management capacity.

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4. Recommendations

• Enhance Asset Utilization:
  Explore opportunities for strategic investments in technology or tools to improve operational efficiency and service delivery capabilities, potentially increasing fixed assets modestly.

• Growth Strategy Development:
  Evaluate market opportunities for expanding client base or service offerings. Consider reinvesting retained earnings to fuel growth rather than maintaining a large cash reserve that could be otherwise deployed.

• Credit Management:
  Monitor debtor days closely to ensure timely collections, maintaining strong cash flow. Although debtor levels are modest, efficient credit control remains essential.

• Risk Management & Succession Planning:
  As a single-person operation, implement risk mitigation strategies for key person dependency, including potential recruitment or partnership arrangements.

• Financial Reporting & Audit Consideration:
  Continue compliance with filing requirements. As the company grows, consider voluntary audit to enhance stakeholder confidence and uncover operational insights.

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