W9 ARCHITECTURE LIMITED

Executive Summary

W9 Architecture Limited exhibits strong financial "vital signs" with positive net current assets and net worth, reflecting a healthy liquidity position for its start-up phase. The company is solvent and well-positioned to support initial operations but lacks profit data to assess ongoing profitability. Continued focus on cash flow management, revenue growth, and compliance will be essential to sustain and improve financial wellness as the business scales.

W9 ARCHITECTURE LIMITED - Analysis Report

Company Number: SC788010

Analysis Date: 2025-07-29 19:51 UTC

Financial Health Assessment for W9 Architecture Limited

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1. Financial Health Score: B

Explanation:
W9 Architecture Limited, a newly incorporated micro private limited company specializing in architectural activities, shows a solid start with positive net current assets and shareholders’ funds. The company’s financials display healthy liquidity and a positive net asset base, indicating sound initial capitalisation and working capital management. However, as a start-up with a short trading period and no employee base, the overall assessment is cautiously optimistic, meriting a "B" grade for promising but early-stage financial health.

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2. Key Vital Signs: Critical Metrics and Interpretation

Metric	Value (£)	Interpretation
Current Assets	39,980	Adequate liquid assets for short-term needs.
Current Liabilities	9,642	Manageable short-term obligations.
Net Current Assets	30,338	Positive working capital, a sign of liquidity.
Net Assets (Shareholders’ Funds)	29,318	Reflects the company's net worth; positive indicates solvency.
Number of Employees	0	No staff yet; typical for a new micro company.
Account Category	Micro	Limited financial complexity and filing scope.

• Healthy Cash Flow Indicator: Positive net current assets imply the company has sufficient liquid resources to cover immediate debts, a fundamental "heartbeat" indicating no liquidity distress.
• Solvency Status: Positive net assets suggest the company is solvent, with assets exceeding liabilities.
• Growth Stage: As a start-up incorporated in November 2023, the company is in its infancy with limited operational history.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Liquidity & Working Capital: The company shows a strong liquidity position with net current assets of £30,338, reflecting a healthy buffer to meet short-term obligations. This is a key vital sign that the company is not currently under financial stress.

• Capital Structure: Shareholders’ funds equal net assets (£29,318), indicating the company is fully equity-funded with no apparent external debt, which reduces financial risk but may limit growth capital.

• Operational Scale: Zero employees and micro account category signify a lean operation, possibly reliant on director involvement or outsourced services. This is common for start-ups focusing initially on building client base and revenue streams.

• Profit & Loss Transparency: The company has not filed a profit and loss account, which is permitted under micro-entity reporting standards. Lack of profit data means assessment of profitability and operational efficiency is not yet possible.

• Governance & Controls: Directors are active, with clear records and no adverse conduct noted, indicating sound governance at this early stage.

• Industry Outlook: Operating in architectural activities (SIC 71111), the company is in a sector that typically requires steady cash flow and project-based revenue. Early positive liquidity supports capacity to take on initial contracts.

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4. Recommendations: Actions to Improve Financial Wellness

• Build Revenue and Profit Tracking: As the company progresses beyond its start-up phase, it is critical to maintain detailed profit and loss accounts to monitor operational performance and ensure profitability.

• Develop Cash Flow Forecasts: Establish rolling cash flow projections to anticipate working capital needs, particularly as project contracts increase, ensuring liquidity remains healthy.

• Consider Staffing Needs: Evaluate the timing and financial feasibility of hiring staff or subcontractors to support growth without straining liquidity.

• Capital Planning: While current equity funding is strong, explore options for additional capital or credit facilities to support expansion once revenue streams stabilize.

• Compliance and Reporting: Maintain timely filings and consider voluntary audit or review as business complexity grows to enhance stakeholder confidence.

• Risk Management: Implement basic risk controls around project delivery and payment collection to avoid cash flow disruptions – a common "symptom" of distress in service businesses.

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