WARREN INTERNATIONAL LIMITED

Executive Summary

WARREN INTERNATIONAL LIMITED has made a strong financial recovery, reflected in its substantial increase in net assets and working capital, indicating a healthy cash flow and operational efficiency typical of a management consultancy. The company’s micro-entity status and service nature explain the low fixed assets, while its current financial metrics suggest a stable and growing business. Vigilant financial monitoring and strategic planning are advised to sustain and build on this positive momentum.

WARREN INTERNATIONAL LIMITED - Analysis Report

Company Number: SC698699

Analysis Date: 2025-07-29 18:57 UTC

Financial Health Assessment for WARREN INTERNATIONAL LIMITED

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1. Financial Health Score: B

Explanation:
WARREN INTERNATIONAL LIMITED demonstrates a generally healthy financial position with strong liquidity and solid net assets growth over recent years. The company exhibits robust working capital and positive shareholders’ funds, indicating good financial stability for a micro-entity. However, the very low fixed assets base and some volatility in accruals/deferred income suggest areas for cautious monitoring. Overall, this company is financially sound but should maintain vigilance to sustain its upward trajectory.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£27	Extremely low, implying minimal investment in long-term tangible assets—typical for service/consultancy firms.
Current Assets	£82,251	Very healthy liquidity position, indicating ample short-term resources.
Current Liabilities	£12,972	Manageable short-term obligations relative to assets.
Net Current Assets (Working Capital)	£69,279	Strong positive working capital suggests excellent short-term financial health and operational liquidity.
Total Net Assets	£67,006	Indicates solid equity base and financial resilience.
Shareholders Funds	£67,006	Reflects retained earnings and capital invested, showing growth from previous years.
Accruals and Deferred Income	-£2,300	Reduced from prior year, indicating better matching of income and expenses.

Trend Analysis:

• From 2023 to 2024, net current assets rose dramatically from £3,553 to £69,279, showing a significant improvement in liquidity and short-term financial health.
• Shareholders’ funds increased from a negative balance in 2023 (-£4,873) to a strong positive £67,006 in 2024, indicating an impressive turnaround and accumulation of retained profits or capital.
• Fixed assets significantly decreased from £951 in 2023 to £27 in 2024, consistent with the company’s micro-entity status and consultancy nature where physical assets are minimal.

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3. Diagnosis

WARREN INTERNATIONAL LIMITED is showing signs of robust financial health, akin to a patient who has recovered from a prior condition and now exhibits strong vital signs. The company’s cash flow appears healthy, given the large increase in current assets and working capital, which is a positive symptom of operational efficiency and possibly improved receivables or cash reserves.

The low level of fixed assets is not a cause for concern here, as management consultancy businesses typically have limited investment in physical assets. The significant improvement in net assets from negative territory to a strong positive position is a key indicator of financial recovery and strength.

The reduced accruals/deferred income imply better alignment between revenue recognition and expenses, reducing the risk of future cash flow mismatches.

There are no signs of distress such as overdue filings or director disqualifications. The company is active, with directors and secretary in place, and its filings are current.

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4. Recommendations

• Maintain Strong Liquidity Management: Continue monitoring working capital closely to ensure healthy cash flow, especially as the business grows.
• Review Deferred Income and Accrual Practices: Although improved, ongoing review of income and expense recognition policies will help maintain accurate financial reporting and avoid surprises.
• Consider Strategic Asset Investment: Evaluate whether investing in key assets (e.g., technology, software) could enhance service delivery without compromising liquidity.
• Plan for Growth: With strong financial footing, consider scaling operations or expanding service offerings while maintaining conservative financial controls.
• Regular Financial Reviews: Continue routine financial health checks to detect any early symptoms of distress, particularly given the rapid changes in financial position year-on-year.
• Engage Stakeholders Transparently: Keep shareholders and key personnel informed of financial status to support confidence and strategic decision-making.

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