TREE ART LIMITED
Executive Summary
TREE ART LIMITED is a dormant micro-entity with minimal financial activity and negligible assets, showing stable but inactive financial health. The company is compliant with filing requirements but not currently trading. To improve its financial health, the owners should either activate business operations or consider formal closure to avoid unnecessary administrative burdens.
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This analysis is opinion only and should not be interpreted as financial advice.
TREE ART LIMITED - Analysis Report
Financial Health Assessment of TREE ART LIMITED
1. Financial Health Score: Grade D
Explanation:
TREE ART LIMITED is classified as a dormant micro-entity with negligible financial activity, reflected by immaterial assets and equity of only £2 consistently over recent years. The company shows no revenue, no liabilities, and no employees. While this means it is not currently exposed to financial distress, the lack of operating activity indicates a "quiet" or "inactive" financial condition. This grade reflects minimal financial operations, which should be seen as a neutral position rather than a healthy operating business.
2. Key Vital Signs:
Metric | Value (£) | Interpretation |
---|---|---|
Current Assets | 2 | Extremely low; essentially no operational assets |
Net Current Assets (Working Capital) | 2 | Positive but negligible, no liquidity concerns given dormant status |
Net Assets (Equity) | 2 | Minimal shareholder funds; company has not accumulated capital |
Cash | 2 | Practically zero cash indicating no trading activity |
Number of Employees | 0 | No staff, consistent with dormant classification |
Account Status | Dormant | No significant financial transactions during the year |
Filing Status | Up to date | No overdue filings, good compliance behaviour |
Interpretation:
The financial "vital signs" resemble a patient in a medically induced coma—low activity but stable and without acute distress signals such as debts or losses. The company is legally compliant and maintains its minimal status without deterioration.
3. Diagnosis:
TREE ART LIMITED is effectively a dormant shell company with no operational business activity or financial transactions. The "symptoms" (financial data) show no trading revenue, no expenses, and no liabilities, indicating the company is not currently engaged in active commercial operations. This status means the company is financially stable but inactive, with no cash flow or operational risk.
The presence of two directors and shareholders controlling between 25-50% each suggests the company is maintained for potential future use or asset holding but is currently in stasis. The company is not generating profits or losses, which means it is neither growing nor declining financially.
4. Recommendations:
Activate or Close: If the intention is to start trading, the company should develop a clear business plan and commence operations, ensuring to maintain proper accounting records and cash flow management. If inactive indefinitely, consider formal dissolution to avoid ongoing filing obligations.
Maintain Compliance: Continue timely filing of dormant accounts and confirmation statements to avoid penalties.
Monitor Financial Position: Even dormant companies should occasionally review their financial position to ensure no unforeseen liabilities or risks arise.
Consider Tax and Legal Advice: If the company will remain dormant for an extended period, seek professional advice on potential tax implications or whether other corporate structures are more appropriate.
Medical Analogy Summary:
TREE ART LIMITED is like a patient in a medically induced coma—stable with no acute distress but not actively functioning. The "heart" of the business (cash flow and assets) is barely beating, indicating no current commercial activity. Without intervention (activation or closure), the company will remain in this low-activity state indefinitely.
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