WEB 3 HOUSE LTD

Executive Summary

WEB 3 HOUSE LTD is financially stable with strong equity but currently dormant, reflecting no trading activity or cash flow. Its financial health is sound but static, with a solid foundation ready for activation. To improve financial wellness, the company should focus on commencing trading, maintaining compliance, and managing capital effectively for sustainable growth.

WEB 3 HOUSE LTD - Analysis Report

Company Number: 15103281

Analysis Date: 2025-07-29 18:13 UTC

Financial Health Assessment for WEB 3 HOUSE LTD

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1. Financial Health Score: B

Explanation:
WEB 3 HOUSE LTD is a newly incorporated private limited company (incorporated August 2023) currently classified as dormant with no trading activity reported for the financial year ending 31 August 2024. The company shows a strong financial foundation with net assets and shareholders’ funds amounting to £500,000, entirely represented by share capital. The absence of trading means there are no operational cash flows or liabilities, indicating a "healthy but inactive" financial state. The score of B reflects this solid capital base but acknowledges the lack of operational financial data to confirm active business health.

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2. Key Vital Signs:

• Dormant Status: The company has filed dormant accounts, meaning no significant transactions or trading activities took place during the period.
• Net Assets / Shareholders’ Funds: £500,000 - This represents a strong capital injection and a healthy balance sheet with no liabilities.
• Called-up Share Capital: 100 Ordinary Shares of £5,000 each fully paid - indicates full funding from shareholders.
• No Current Liabilities or Debt: Absence of liabilities reduces financial risk but also shows no operational activity.
• Filing Compliance: All filings (accounts and confirmation statements) are up to date with no overdue submissions, showing good compliance health.
• Company Status: Active but dormant - legal and regulatory status is healthy.
• Director & Secretary: Appointed directors and corporate secretary with clear governance structure noted.
• Industry Classification: Diverse SIC codes including business support, professional services, financial management, and real estate - potential for future operational diversification.

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3. Diagnosis:

The "symptoms" here are typical of a company in its incubation phase or a holding vehicle rather than an active trading entity. The lack of operational income or expenses means there are no signs of trading stress, such as cash flow shortages or rising liabilities. The healthy "vital sign" of strong net assets (equity) shows the company is well-capitalized and positioned to commence trading or investments when ready.

However, the dormant status also means there is no cash flow being generated, which could be a concern if the company plans to start operations but has not yet secured working capital beyond the initial share capital. The financial health is stable but static, akin to a patient in good health but resting rather than active.

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4. Recommendations:

• Activate Trading Activities: To improve financial wellness, the company should develop and implement an operational plan to start generating revenue. This will create "healthy cash flow" — the lifeblood of business sustainability.
• Maintain Compliance Vigilance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain corporate credibility.
• Prepare Financial Projections: Develop forecasts and budgets to anticipate capital needs and manage working capital effectively once trading commences.
• Monitor Capital Usage: Ensure that the existing capital (£500,000) is used efficiently for growth initiatives and not eroded by non-productive costs.
• Governance & Controls: Maintain strong director oversight and consider appointing additional directors or advisors with operational experience in the planned industry sectors.
• Leverage Industry Expertise: The broad SIC codes suggest flexibility; focus on a clear core activity to build operational and financial metrics that can be monitored for early warning signs of distress.
• Plan for Audit Requirements: Once trading begins and thresholds for audit exemption are exceeded, prepare for audit and robust financial reporting to support stakeholder confidence.

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