THE SUPU PROJECT LTD

Executive Summary

THE SUPU PROJECT LTD is currently maintaining positive but shrinking liquidity and net asset levels, indicating a fragile financial condition typical of an early-stage micro company. While solvent and compliant with filing obligations, the company shows symptoms of financial tightening that require proactive cash flow management and potential capital strengthening. Addressing these areas can help stabilize and improve its financial health going forward.

THE SUPU PROJECT LTD - Analysis Report

Company Number: 13153517

Analysis Date: 2025-07-20 13:41 UTC

Financial Health Assessment of THE SUPU PROJECT LTD as of 31 January 2024

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1. Financial Health Score: C

Explanation:
The company shows signs of operating with a very lean financial structure, maintaining positive net current assets and net assets, but at a low and declining level. The cash position has weakened compared to the prior year, and net assets have reduced by approximately 60%. This suggests the company is still solvent but may be experiencing some early symptoms of financial strain or slow growth, warranting close monitoring and proactive management.

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2. Key Vital Signs

Metric	31 Jan 2024	31 Jan 2023	Interpretation
Cash at Bank	£1,984	£3,418	Low and declining cash reserves ("dwindling pulse"). Cash remains positive but shrinking.
Current Liabilities	£1,151	£1,298	Slight decrease but still at a level that requires careful management of payables.
Net Current Assets (Working Capital)	£833	£2,120	Positive but reduced by more than half. Indicates tightening liquidity ("weaker circulation").
Net Assets (Equity)	£833	£2,120	Net worth decreased significantly, showing reduced buffer against liabilities ("thinner reserves").
Share Capital	£1	£1	Minimal share capital, typical for a micro company.
Average Number of Employees	1	1	Small scale operation, likely founder-led or very small team.

Additional Notes:

• Current liabilities include a loan from directors (£850), indicating reliance on internal funding sources rather than external debt or trade credit.
• Taxes and social security liabilities have decreased, which may be positive or reflect operational changes.

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3. Diagnosis

The company is in a fragile but stable financial condition. The "heartbeat" of its liquidity—cash and net current assets—is positive but weakening, which is a symptom of limited cash inflow or increased outflows. The reduction in net assets over the year indicates the company may have incurred losses or distributed reserves, diluting the financial "immune system."

The small scale of operations (1 employee) and minimal capital base suggest the business is in an early growth or development phase. The reliance on director loans hints at funding challenges or an early-stage business cycle where external financing is limited.

No signs of immediate distress such as negative net assets or overdue filings are present. However, the downward trend in key liquidity and equity metrics indicates the company should address its working capital management and explore growth or revenue strengthening strategies to avoid future "financial fever" or liquidity crises.

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4. Recommendations

To improve financial wellness and strengthen the company's financial health, consider the following actions:

• Enhance Cash Flow Management:
  Tighten controls on receivables and payables to maintain or increase cash reserves. Explore faster invoicing and collection processes to avoid liquidity drying up.

• Increase Revenue or Capital Injection:
  Given the cultural education sector, assess opportunities for new contracts, partnerships, or grants to boost turnover and profitability. Alternatively, consider increasing share capital or director loans responsibly to build a stronger equity base.

• Monitor and Manage Director Loans:
  Formalize terms for director loans to ensure clarity and sustainability. Avoid excessive reliance without clear repayment plans to prevent solvency risks.

• Cost Optimization:
  Review operating expenses closely, ensuring the small team is efficiently utilized and discretionary costs are minimized.

• Strategic Planning:
  Develop a clear business plan with financial forecasts to anticipate future capital needs and operational cash flow cycles, helping to detect early warning signs ahead of time.

• Regular Financial Reviews:
  Implement monthly or quarterly financial health checks to track vital signs continuously and respond promptly.

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