THE PRODUCTION POT LTD

Executive Summary

THE PRODUCTION POT LTD is a young micro-entity exhibiting strong financial health with positive liquidity and solvency indicators. Its financial "vital signs" reveal a stable and solvent business but limited scale and operational history suggest cautious optimism. With strategic growth, strong cash flow management, and diversified funding, the company is well positioned for sustainable financial wellness.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

THE PRODUCTION POT LTD - Analysis Report

Company Number: 14679196

Analysis Date: 2025-07-29 13:03 UTC

Financial Health Assessment Report for THE PRODUCTION POT LTD


1. Financial Health Score: B

Explanation:
The company demonstrates a solid financial footing with positive net current assets and net assets, reflecting a healthy buffer over its short-term liabilities. Being a micro-entity with simple financials, it maintains stability in working capital and shareholder funds. However, the company is very young (incorporated in 2023) with limited operational history and modest asset size, which restricts a higher rating. The absence of debt distress and positive equity position merits a good grade but not an excellent one due to limited scale and growth data.


2. Key Vital Signs

Vital Sign 2025 Value Interpretation
Current Assets £17,552 Adequate short-term assets, mainly cash or receivables, to cover immediate needs.
Current Liabilities £7,892 Short-term obligations remain manageable and well covered by current assets.
Net Current Assets £9,784 Positive working capital indicates liquidity strength and ability to meet short-term demands.
Net Assets (Equity) £9,784 Positive net worth shows the business is solvent and funded by owner’s equity.
Shareholders Funds £9,784 Corresponds with net assets, confirming no hidden liabilities or off-balance sheet issues.
Employee Count 1 Minimal overhead costs, but also limited operational capacity.
Company Age ~2 years Early stage; financial stability shown but growth potential yet unproven.

3. Diagnosis: Financial Condition Overview

THE PRODUCTION POT LTD exhibits symptoms of a financially healthy micro-entity. The company shows a stable liquidity position with current assets comfortably exceeding current liabilities, indicating healthy cash flow management and operational efficiency at this stage. Positive net assets and shareholders’ funds reinforce that the company is solvent with no apparent financial distress.

The limited size and age mean the company is still in its infancy, akin to a young patient with robust vital signs but limited history to predict long-term health. The sole director’s full control and ownership concentration suggests streamlined decision-making but also potential risks if diversification of management and capital is not pursued as growth occurs.

No signs of overdue filings or regulatory distress are present, which is a good indicator of compliance health. However, the small scale means vulnerability to market shocks or business disruptions remains a concern until the company scales its operations and diversifies revenue streams.


4. Recommendations: Path to Improved Financial Wellness

  1. Build Operational Scale:
    To strengthen financial resilience, focus on growing revenue streams and expanding operational capacity beyond the sole employee/director model. This will help absorb shocks and increase profitability.

  2. Maintain Strong Cash Flow Controls:
    Continue monitoring working capital closely to preserve liquidity. Consider establishing a cash reserve for unforeseen expenses, ensuring ongoing "healthy cash flow" and avoiding liquidity symptoms of distress.

  3. Diversify Funding Sources:
    Explore external funding options (e.g., small business loans, investor capital) to support growth initiatives. Reliance solely on founder equity may limit expansion opportunities.

  4. Implement Financial Forecasting:
    Develop regular budgeting and forecasting processes to anticipate financial needs and plan investments, enhancing ability to diagnose potential future financial issues early.

  5. Strengthen Governance and Compliance:
    As the company grows, consider appointing additional directors or advisors to broaden oversight and bring diverse perspectives, reducing risk of management bottlenecks.



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