THE WEALDEN CNC COMPANY LTD

Executive Summary

THE WEALDEN CNC COMPANY LTD currently exhibits financial stability with positive net current assets and equity but shows symptoms of low operational activity, reflected in its dormant classification and absence of employees. While not in distress, the company’s financial vitality is limited by minimal capital and liquidity, suggesting a need for strategic action to transition from dormancy to active trading and growth. Implementing measures to boost working capital, clarify business activity, and explore revenue generation will be crucial for improving financial health.

THE WEALDEN CNC COMPANY LTD - Analysis Report

Company Number: 12514063

Analysis Date: 2025-07-29 15:50 UTC

Financial Health Assessment for THE WEALDEN CNC COMPANY LTD

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1. Financial Health Score: C

Explanation:
The company presents a mixed financial picture with modest net current assets and shareholders’ funds that have fluctuated but remain positive in recent years. The absence of employees and minimal share capital indicate a very small operation. The financials suggest survival but limited operational scale or growth. The company is not showing signs of distress but also lacks strong financial vitality typical of a robust, growing business.

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2. Key Vital Signs

Metric	Latest Value (2024)	Interpretation
Current Assets	£4,879	Low liquid resources, indicating minimal cash or short-term receivables.
Current Liabilities	£0 (implied)	No short-term debts reported, which is a positive "no immediate pressure" sign.
Net Current Assets (Working Capital)	£4,879	Positive working capital means the company can cover short-term obligations, but the absolute amount is low.
Shareholders Funds (Equity)	£4,879	Positive equity signifies the company is solvent but the low figure suggests limited accumulated profits or investment.
Share Capital	£20	Minimal initial investment, typical of micro companies but limits financial buffer.
Employee Count	Nil	No staff employed, possibly indicating a passive or dormant operational status despite the "active" classification.
Industry Classification	Dormant Company (SIC 99999)	Official SIC suggests no trading activity, which aligns with no employees and minimal assets.

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3. Diagnosis: Underlying Business Health

• Symptoms of Low Activity: The company’s SIC code indicates it is classified as dormant, meaning no significant trading activity took place. This aligns with zero employees and very low assets.
• Financial Stability: The positive net current assets and shareholders’ funds indicate the company is solvent and able to meet its current obligations without external financing—a sign of financial stability.
• Liquidity Concerns: Current assets have declined significantly from £11,469 in 2023 to £4,879 in 2024, a symptom indicating either asset sales, cash usage, or lack of incoming funds.
• No Operational Growth: The absence of employees and the dormant SIC code suggest no expansion or operational momentum. This is a symptom of very low or no revenue generation.
• Low Capital Base: The minimal share capital (£20) restricts the company’s ability to absorb losses or invest in growth.
• No Audit Requirement: The company qualifies for audit exemption and has not been audited, common for micro entities but reducing external assurance on financial health.

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4. Recommendations: Steps to Improve Financial Wellness

• Clarify Operational Status: If the company intends to trade, reclassify SIC codes to reflect actual business activity and consider hiring minimal staff or contractors to generate revenue.
• Boost Working Capital: Seek to increase current assets through cash injections, customer receivables, or inventory to create a healthier buffer for expenses.
• Capital Injection: Consider increasing share capital or shareholder loans to strengthen equity and provide funds for growth or operational needs.
• Financial Monitoring: Implement regular cash flow forecasting to detect liquidity issues early and plan accordingly.
• Explore Revenue Opportunities: If dormant, consider active steps to commence trading, including marketing and business development, to generate income.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Consider Strategic Review: Evaluate the business model’s viability and explore restructuring or diversification if current inactivity persists.

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