TULSA DEVELOPMENTS LTD

Executive Summary

Tulsa Developments Ltd shows a sound financial foundation with strong liquidity and equity at start-up, reflecting a positive but early-stage financial health. To ensure ongoing wellness, management should focus on developing profitability reporting, cash flow management, and strategic financial planning aligned with its project development activities.

TULSA DEVELOPMENTS LTD - Analysis Report

Company Number: 14654244

Analysis Date: 2025-07-29 16:17 UTC

Financial Health Assessment for Tulsa Developments Ltd (As of 28 February 2024)

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1. Financial Health Score: B

Explanation:
Tulsa Developments Ltd shows a solid opening financial position for a newly incorporated micro-entity. The company possesses healthy net current assets and shareholders' funds, indicating good initial capitalization and liquidity. However, the limited financial history and absence of profit and loss details restrict a full evaluation of operational performance and earnings sustainability. Hence, the score reflects a positive but cautious outlook suitable for a start-up stage company.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Status	Active	The business is currently operational with no signs of distress or insolvency.
Account Category	Micro	Minimal filing requirements, suitable for a small-scale start-up venture.
Share Capital	£51.00	Nominal share capital, typical for micro private limited companies at incorporation.
Current Assets	£200,050	Strong short-term assets, mostly likely cash or equivalents, indicating good liquidity.
Net Current Assets	£200,050	Positive working capital signals the company can meet short-term obligations comfortably.
Shareholders’ Funds	£200,050	Equity value equals net current assets, showing no long-term liabilities and a clean balance sheet.
Employees	2	Small workforce consistent with micro company status.
Industry Classification (SIC 41100)	Development of building projects	The company operates in a capital-intensive sector requiring careful cash flow and project management.

Interpretation:
The company’s "vital signs" indicate a healthy financial starting point, with strong liquidity (healthy cash flow potential) and solid equity backing. The absence of liabilities suggests no immediate financial distress symptoms. However, the lack of profit and loss data means we cannot yet assess operational profitability or cash generation from trading activities.

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3. Diagnosis

Underlying Financial Health:
Tulsa Developments Ltd is at an early stage of its lifecycle, reflected by a clean, simple balance sheet dominated by current assets and equity. The company shows no symptoms of financial distress such as negative working capital, debt burden, or shareholder deficit. Its liquid position is excellent, which is critical in the building development sector due to upfront capital needs.

Missing Information / Symptoms to Monitor:

• Absence of profitability data limits insight into operational efficiency and sustainability.
• No debt or liabilities may indicate low leverage, but also possibly limited external financing which might be needed for growth.
• The company’s ability to convert assets into revenue and manage project-related cash flow will be key to future health.
• Directors control is split evenly between two individuals, which may support balanced governance but should be monitored for decision-making efficiency.

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4. Recommendations

To strengthen financial wellness and ensure a robust prognosis, consider the following actions:

• Establish Profit and Loss Reporting: Begin tracking and reporting income and expenses to monitor operational performance and identify profitability trends early.
• Cash Flow Management: Maintain a detailed cash flow forecast aligned with project milestones to avoid liquidity crunches common in development companies.
• Build Credit Relationships: Explore appropriate access to external finance or credit facilities to support project scaling without over-reliance on equity.
• Governance and Controls: Implement strong financial controls and regular board reviews to anticipate financial risks and operational bottlenecks.
• Strategic Planning: Develop a financial plan aligned with project pipeline and market conditions to ensure sustainable growth and resilience.
• Regular Monitoring: Schedule periodic financial health checks to detect early symptoms of distress such as delayed payments, rising costs, or shrinking equity.

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Executive Summary

Tulsa Developments Ltd demonstrates a healthy initial financial position with strong liquidity and equity for a micro-entity start-up in the building development sector. While current assets and net current assets are robust, the absence of profitability information calls for focused cash flow and operational monitoring to ensure sustainable growth. Establishing comprehensive financial tracking and prudent governance will support long-term financial wellness and resilience.