Company Number: 15127880

Analysis Date: 2025-07-29 12:08 UTC

Financial Health Assessment for TWOSIXTYFOUR LTD
(Financial Year Ending 30 September 2024)

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1. Financial Health Score: B

Explanation:
TWOSIXTYFOUR LTD exhibits a solid financial condition for a young company in its first year of operation. It shows healthy liquidity, positive net assets, and no signs of distress such as overdue filings or negative equity. As a startup private limited company in management consultancy, the financial "vital signs" indicate good initial financial stability, though the scale is small and the business is still in early development stages. The score reflects a generally healthy position with room for growth and improvement.

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2. Key Vital Signs

Metric	Value (£)	Interpretation (Medical Analogy)
Current Assets	122,801	Healthy reservoir of short-term resources ("circulating fluids").
Cash & Cash Equivalents	103,727	Strong "pulse" of cash on hand; good liquidity for daily operations.
Debtors (Trade Receivables)	19,074	Moderate "nutrient intake" via client payments, manageable level.
Current Liabilities	86,750	"Short-term obligations" or liabilities due, reasonable and covered.
Net Current Assets (Working Capital)	36,051	Positive working capital indicates sound "immediate financial health."
Fixed Assets (Tangible)	3,506	Modest investment in equipment, reflecting capital "bones and muscles."
Net Assets (Equity)	38,718	Positive shareholder equity shows "overall vitality" and solvency.
Share Capital	100	Minimal initial capital, typical for a start-up.
Retained Earnings	38,618	Accumulated profits or reserves build "financial immunity."
Staff Count	1	Lean operational structure, low overhead "metabolic rate."
Filing Status	Up to date	No overdue filings; compliance "check-ups" are current.

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3. Diagnosis: Financial Condition Analysis

TWOSIXTYFOUR LTD is a newly formed private limited company in the management consultancy sector, incorporated in September 2023 with its first financial year ending September 2024. The company’s financial health is currently stable, exhibiting:

• Liquidity and Cash Flow:
  The company has a strong cash position (£103,727) relative to its liabilities, which means it has a healthy cash flow "heartbeat" enabling it to meet short-term debts promptly without strain.

• Solvency and Capital Structure:
  Positive net assets (£38,718) and shareholder funds indicate the company is solvent and has not over-leveraged. The balance sheet shows a stable capital structure typical for a start-up, with minimal fixed assets and a lean operational model.

• Working Capital:
  The net current assets of £36,051 suggest the company can comfortably cover its short-term obligations, a sign of financial "vitality."

• Revenue and Profitability:
  Although profit and loss details are not disclosed due to small company exemptions, the retained earnings balance implies the company has accumulated some profits or reserves, showing early signs of operational success.

• Risk Factors:

  • As a start-up, the company has limited financial history, so future performance is less predictable.
  • The company relies heavily on a single director and owner, which can present concentration risk.
  • No audit was required, so financial information is less scrutinized, which is common for small companies but means external validation is limited.

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4. Recommendations for Financial Wellness Improvement

To maintain and improve the company’s financial health, consider the following steps:

• Cash Flow Management:
  Continue to monitor cash flow closely to maintain the "strong pulse" of liquidity. Avoid over-committing to payables and maintain a buffer for unexpected expenses.

• Diversify Revenue Streams:
  As a consultancy, broadening the client base will reduce dependency risks and stabilize income "nutrients," enhancing financial immunity.

• Build Reserves & Capital:
  Gradually increase retained earnings by controlling costs and improving profitability. Consider injecting additional share capital if expansion is planned to strengthen the "financial skeleton."

• Formal Financial Controls:
  Even if audit-exempt, implementing internal financial controls and regular reviews will help detect early signs of distress ("symptoms") and improve reporting accuracy.

• Plan for Growth:
  As the company grows beyond the micro/small thresholds, prepare for increased compliance and possibly audit requirements. This will help maintain transparency and stakeholder confidence.

• Risk Management:
  Consider appointing additional directors or advisors to diversify leadership and mitigate key-person risk.

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