THE NAZIR AWAN FOUNDATION

Executive Summary

THE NAZIR AWAN FOUNDATION maintains a robust liquidity position and positive net assets typical of a financially stable micro-entity, reflecting good short-term financial health. The foundation operates on a lean model without fixed assets or employees, which limits growth potential. To enhance financial wellness, it should consider modest asset acquisition, staff engagement, and sustained cash flow management while exploring additional funding sources.

THE NAZIR AWAN FOUNDATION - Analysis Report

Company Number: 13249412

Analysis Date: 2025-07-20 15:17 UTC

Financial Health Assessment for THE NAZIR AWAN FOUNDATION

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1. Financial Health Score: B

Explanation:
The company demonstrates a stable and improving liquidity position with positive net current assets and a growing reserve base, indicating healthy short-term financial management. However, the absence of fixed assets and employees, combined with a relatively small asset base typical of micro-entities, suggests limited operational scale and capacity for growth. Thus, the overall financial health is good but with constraints characteristic of a small foundation.

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2. Key Vital Signs

Metric	Latest Value (31 March 2024)	Interpretation
Fixed Assets	£0	No long-term investments or property; typical for a service-oriented foundation.
Current Assets	£11,526	Cash or receivables available to meet short-term obligations; positive sign of liquidity.
Current Liabilities	£600	Minimal short-term debts; indicates low financial stress.
Net Current Assets	£10,926	Strong working capital position; "healthy cash flow" buffer to cover immediate liabilities.
Net Assets (Equity)	£10,926	Positive net worth; foundation is solvent with assets exceeding liabilities.
Employee Count	0	No employees; suggests reliance on volunteers or directors; limits operational capacity.
Account Category	Micro	Smallest reporting category; financial data is limited but adequate for basic analysis.
Profit & Loss Reserve	£10,926	Accumulated retained earnings or surplus funds, signifying financial stability over time.

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3. Diagnosis

The foundation exhibits a stable financial "heartbeat," with a solid liquidity position and positive net assets. The increase in current assets from £7,455 in 2023 to £11,526 in 2024, alongside a small liability increase, shows improved cash flow management—akin to a patient gaining strength after a period of zero net assets. The foundation’s balance sheet reflects a healthy, if modest, financial state with no signs of distress such as overdue liabilities or eroded equity.

However, the absence of fixed assets and employees signals a lean operational model, possibly volunteer-driven or reliant on external service providers. This "low metabolic rate" means the foundation has limited capacity for rapid growth or asset accumulation without additional funding or investment.

Overall, the foundation's financial "vital signs" suggest it is in good health but operates on a minimal scale with a narrow financial cushion.

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4. Recommendations

• Enhance Asset Base: Consider acquiring modest fixed assets or investing in operational resources that can improve service delivery or revenue-generating capacity, if aligned with the foundation’s objectives. This will strengthen long-term stability.

• Build Human Capital: Evaluate the potential benefits of engaging paid staff or contractors to expand operational capacity and reduce reliance on voluntary efforts, which can improve program effectiveness and sustainability.

• Maintain Healthy Cash Flow: Continue prudent cash management to preserve positive net current assets and avoid liquidity crunches—this ensures the foundation remains "financially fit."

• Explore Funding Opportunities: As a private limited by guarantee foundation with no share capital, focus on grants, donations, or partnerships to enhance financial reserves and support mission-critical activities.

• Regular Financial Monitoring: Implement routine internal reviews of financial statements to detect early "symptoms" of financial stress, such as declining reserves or rising liabilities, enabling proactive management.

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