THE UPPER ROOM CORPORATION LTD

Executive Summary

THE UPPER ROOM CORPORATION LTD is a newly incorporated micro-entity currently showing initial startup "symptoms" of negative net assets and short-term liabilities exceeding assets, typical of early-stage companies. While the financial position is fragile, prompt capital infusion and careful cash flow management can improve liquidity and support the transition to operational profitability in its real estate activities.

THE UPPER ROOM CORPORATION LTD - Analysis Report

Company Number: 15423987

Analysis Date: 2025-07-29 19:03 UTC

Financial Health Assessment: THE UPPER ROOM CORPORATION LTD

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1. Financial Health Score: Grade D

Explanation:
THE UPPER ROOM CORPORATION LTD is a very young micro-entity, incorporated in January 2024 and filing its first set of accounts for the period ending January 2025. The financial statements show net liabilities of £2,616, reflecting a negative net asset position. This indicates initial funding or startup costs have not yet been offset by assets or income. The absence of fixed or current assets and presence of current liabilities suggests the company is in a fragile financial state typical of a startup phase but requires close monitoring. Given the lack of trading history and current liabilities exceeding assets, a grade of D reflects cautious concern but not yet critical distress.

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2. Key Vital Signs

Metric	Value	Interpretation
Incorporation Date	18 Jan 2024	Very young company, limited operating history
Account Category	Micro	Small scale, minimal filing requirements
Latest Accounts Date	31 Jan 2025	First financial year completed
Net Assets	-£2,616	Negative net worth; liabilities exceed assets
Current Liabilities	£2,616	Short-term obligations present
Shareholders’ Funds	-£2,616	Equity capital currently negative
Employee Count	Nil	No employees, no payroll obligations
Industry SIC Codes	68100, 68209	Real estate activities (owning, letting)
Directors	2	Both British nationals with significant control

Interpretation of Vital Signs:

• The negative net assets indicate the company’s startup phase costs or initial expenses are not yet covered by assets or revenue, which is common in early-stage companies but a "symptom" to watch.
• Current liabilities imply short-term debts or payables are outstanding. No current assets reported suggests limited cash or receivables to cover these. This could lead to liquidity strain if not managed well.
• No employees reduce payroll burden but also reflect minimal operational scale so far.
• The company operates in real estate, which can require significant capital investment and cash flow management, increasing the importance of financial stability.

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3. Diagnosis

Financial Condition: Early-stage startup with initial funding phase challenges

THE UPPER ROOM CORPORATION LTD is in the nascent stage of its business lifecycle. The company’s negative net assets and presence of current liabilities without offsetting current assets are "symptoms" indicative of initial capital outflows and startup costs. This is typical for a company just establishing itself and acquiring assets or rental properties to operate. There are no signs of income generation or profitability yet, and the company has no employees, suggesting limited operational activity so far. The balance sheet "vital signs" point to liquidity risk, as the company may not currently have sufficient liquid resources to meet short-term obligations without additional funding.

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4. Recommendations

To improve financial wellness and move towards a healthier financial state, the company should consider the following actions:

• Raise Additional Capital: Inject more equity or secure external financing to strengthen the balance sheet and improve liquidity. This is critical to cover current liabilities and fund operating activities.
• Develop Cash Flow Management: Establish a detailed cash flow forecast to anticipate funding needs and avoid cash shortages. Ensure timely collection of any receivables.
• Asset Acquisition and Revenue Generation: Accelerate acquisition or leasing of real estate assets to start generating rental income and improve profitability.
• Cost Control: Closely monitor expenses to prevent unnecessary cash outflows during this fragile startup phase.
• Regular Financial Monitoring: Implement monthly or quarterly financial reviews to detect early signs of distress and respond proactively.
• Engage Professional Advice: Consider consulting with financial advisors or accountants to structure funding and tax-efficient strategies appropriate for real estate ventures.

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