THE LITTLE MORRISON COMPANY LTD

Executive Summary

THE LITTLE MORRISON COMPANY LTD is financially stable with solid liquidity and growing equity, indicating a healthy financial position for a micro-entity start-up. However, the absence of employees and limited operational scale suggest the company is at an early development stage and should focus on scaling operations and strengthening risk management for sustainable growth.

THE LITTLE MORRISON COMPANY LTD - Analysis Report

Company Number: 14573668

Analysis Date: 2025-07-29 20:17 UTC

Financial Health Assessment of THE LITTLE MORRISON COMPANY LTD

---

1. Financial Health Score: B

Explanation:
THE LITTLE MORRISON COMPANY LTD demonstrates solid financial footing for a micro-entity in its early stage of operations. Its net current assets have increased year-on-year, indicating improving liquidity and working capital. However, the absence of employees and a narrow asset base limit its operational scale and resilience. The company’s financial health is good but could benefit from growth and diversification to earn a higher grade.

---

2. Key Vital Signs

Metric	31 Jan 2025	31 Jan 2024	Interpretation
Current Assets	£21,730	£14,653	Healthy increase in liquid assets, positive cash flow signs.
Current Liabilities	£6,201	£4,760	Manageable short-term obligations, no distress signals.
Net Current Assets	£15,529	£9,893	Positive working capital, indicating ability to meet short-term debts comfortably.
Net Assets / Shareholders Funds	£15,529	£9,893	Growing equity base, reflecting retained earnings or capital injection.
Average Employees	0	1	No active workforce; potential risk to operational capacity and growth.

Interpretation:

• The company shows "healthy cash flow" indicated by rising current assets and net current assets year-on-year.
• The current liabilities are low relative to current assets, which signals no immediate liquidity crisis ("no symptoms of financial distress").
• The net assets growth suggests either reinvested profits or increased capital from the owner, supporting financial stability.
• However, the lack of employees could suggest limited business activity or reliance on the sole director, which may constrain scalability.

---

3. Diagnosis

The financial "vital signs" of THE LITTLE MORRISON COMPANY LTD suggest a financially stable but nascent business. The company exhibits the hallmark of a start-up or very small operation with limited operational complexity. The positive net current assets and growing equity reflect a "healthy financial pulse," indicating that the company is solvent and capable of meeting short-term obligations.

However, the absence of employees ("symptom of minimal operational activity") could imply the business is either in early development, highly automated, or reliant on the director alone. This presents a risk if the company plans to scale or diversify because a single-person operation can be vulnerable to operational disruptions.

The company’s micro-entity status and exemption from audit reflect a simple structure but limit transparency and detailed financial insights. Overall, the diagnosis is that the company is in good financial health but is at an early stage with limited operational complexity.

---

4. Recommendations

• Strengthen Operational Capacity: Consider hiring or contracting additional staff or consultants to expand business activities and reduce reliance on the sole director. This will help support growth and operational resilience.
• Improve Financial Reporting: Although exempt from audit, maintaining detailed financial records and possibly preparing management accounts will aid strategic decision-making.
• Monitor Working Capital: Continue to manage current assets and liabilities prudently to preserve liquidity and avoid cash flow "symptoms of distress."
• Develop Growth Strategy: Explore opportunities for increasing revenue streams or capital investment to build a stronger asset base and shareholder funds.
• Risk Management: Implement basic risk controls given the sole director structure, including contingency planning to mitigate risk of operational disruption.
• Compliance Vigilance: Ensure timely filing of accounts and returns to avoid penalties and maintain good standing with Companies House.

---