WALTSTONE TREE CARE LIMITED

Executive Summary

WALTSTONE TREE CARE LIMITED, a newly incorporated micro-entity, exhibits early-stage financial stability with positive working capital and no current liabilities. However, significant provisions for liabilities and long-term creditors signal cautionary factors that require careful management. With focused attention on managing obligations and strengthening equity, the company can improve its financial resilience and build a healthier financial profile over time.

WALTSTONE TREE CARE LIMITED - Analysis Report

Company Number: 15003749

Analysis Date: 2025-07-29 13:44 UTC

Financial Health Assessment of WALTSTONE TREE CARE LIMITED

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1. Financial Health Score: C

Explanation:
As a newly formed micro-entity (incorporated in July 2023) with its first financial year ending March 2024, Waltstone Tree Care Limited shows a modest but positive financial position. The company reports positive net assets (£2,134) but also has significant provisions for liabilities (£8,667) and a long-term creditor balance (£6,000). These mixed signals suggest a cautious financial health state—stable but with some financial obligations that need monitoring. The score "C" reflects a developing business with potential but also early-stage financial strain or commitments.

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2. Key Vital Signs:

Metric	Value (£)	Interpretation
Fixed Assets	6,000	Small investment in long-term assets indicates minimal capital base.
Current Assets	10,801	Sufficient short-term assets, likely cash or receivables, indicating liquidity.
Current Liabilities	0	No immediate short-term debt, a positive sign of short-term stability.
Net Current Assets	10,801	Positive working capital, "healthy cash flow" potential in the short term.
Creditors (due after 1 year)	6,000	Long-term liabilities present, requiring management attention.
Provisions for liabilities	8,667	Significant contingent liabilities or expected costs that could stress finances.
Net Assets (Equity)	2,134	Positive equity but quite low, reflecting a thin capital buffer.
Shareholders Funds	2,134	Equity funded by the two directors, indicating ownership involvement.
Employees	2	Small team consistent with micro-entity status, manageable overheads.

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3. Diagnosis:

"Symptoms Analysis":
The company shows early-stage operational activity with positive net current assets and no current liabilities, which suggests good short-term liquidity—akin to a patient with a stable heartbeat but under close observation. However, the presence of long-term creditors (£6,000) and notable provisions for liabilities (£8,667) indicate underlying financial obligations or potential future costs. These "symptoms" could be future drain on resources if not managed well, similar to underlying conditions that could worsen if untreated.

"Underlying Issues":

• Provisions for liabilities may reflect expected future expenses, legal claims, or restructuring costs, which should be clarified and managed carefully.
• The low level of equity means limited financial cushioning against unexpected shocks or downturns.
• The company is in a very early phase with limited financial history, so future cash flow generation and profitability remain uncertain.

Overall condition: Stable but fragile. The company is not in immediate distress but needs to monitor liabilities and build equity and cash reserves to strengthen financial health over time.

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4. Recommendations:

1. Clarify and Manage Provisions:

   • Investigate the nature of the £8,667 provisions to assess the likelihood and timing of these liabilities.
   • Plan cash flows accordingly to meet these future obligations without compromising operations.

2. Strengthen Equity Base:

   • Consider additional capital injections from shareholders to increase the financial buffer.
   • Retain any profits in the business to build reserves and improve net assets.

3. Cash Flow Monitoring:

   • Maintain close control over cash flow to ensure the positive net current assets translate to operational liquidity.
   • Avoid accumulating current liabilities to preserve short-term financial health.

4. Growth and Profitability Focus:

   • As a micro-entity, focus on building a sustainable customer base and controlling costs to move towards profitability.
   • Track financial metrics regularly to detect any "symptoms" early.

5. Future Reporting and Compliance:

   • Ensure timely filing of accounts and confirmation statements to maintain good standing and avoid penalties.
   • Consider preparing more detailed financial forecasts as the business grows.

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