WEB REFINE LTD

Executive Summary

WEB REFINE LTD, as a newly formed micro-entity in the IT services sector, currently demonstrates sound financial health with positive net assets and working capital. The company is financially stable but should focus on cash flow management and building reserves to sustain growth. With prudent governance and strategic planning, WEB REFINE LTD is well-positioned for a healthy financial future.

WEB REFINE LTD - Analysis Report

Company Number: 15468691

Analysis Date: 2025-07-29 12:55 UTC

Financial Health Assessment of WEB REFINE LTD

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1. Financial Health Score: B

Explanation:
WEB REFINE LTD shows solid foundational financial health typical of a newly established micro-entity. The company exhibits positive net assets and a modest but healthy working capital position. Given its infancy (incorporated in Feb 2024) and micro size, the financials indicate stability without signs of distress. The score B reflects a generally sound position but with limited financial history and scale, warranting cautious optimism.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,799	Small investment in long-term assets, typical for a startup phase.
Current Assets	12,710	Good level of short-term assets indicating available resources for ongoing operations.
Current Liabilities	10,548	Obligations due within one year; manageable but close to current assets, suggesting moderate liquidity risk.
Net Current Assets (Working Capital)	2,162	Positive working capital signals ability to cover short-term debts comfortably.
Accruals and Deferred Income	1,132	Some deferred income or accrued expenses, normal in early-stage companies.
Net Assets	2,829	Positive equity, showing the company’s value after liabilities are accounted for.
Shareholders’ Funds	2,829	Reflects owner investment and retained earnings (minimal at this stage).
Average Number of Employees	1	Very lean operation, consistent with micro company status.

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3. Diagnosis: What the Financial Data Reveals

WEB REFINE LTD is in the early stages of its business lifecycle, showing signs of a "healthy pulse" financially. The presence of positive net current assets and net assets indicates no immediate liquidity distress or solvency issues—akin to a patient with stable vital signs but limited medical history. The company’s low fixed asset base and single-employee structure reflect a lean business model focused on information technology services.

The closeness of current liabilities to current assets suggests the company should monitor cash flow carefully to avoid liquidity strain, similar to watching a patient with borderline blood pressure. The accruals and deferred income show some ongoing operational commitments but not at worrying levels.

The company benefits from the full control and stewardship of a single director and owner, Mr. Dean Drew, which can be advantageous for quick decisions but may also concentrate risk. No signs of financial distress, overdue filings, or governance issues are evident.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Enhance Cash Flow Management:
  Maintain a close watch on cash inflows and outflows to ensure current liabilities are met promptly. Establish a cash flow forecast to anticipate funding needs and avoid liquidity crunches.

• Build Financial Reserves:
  As revenues grow, aim to increase retained earnings and net assets to cushion against unforeseen expenses, akin to building immunity reserves.

• Diversify Revenue Streams:
  Explore broadening client base or service offerings within IT services to reduce dependence on limited sources and improve financial resilience.

• Maintain Compliance and Timely Filings:
  Continue ensuring accounts and confirmation statements are filed on time to avoid penalties and maintain company credibility.

• Consider Strategic Investment:
  Evaluate opportunities for investing in technology or marketing that could accelerate growth without overleveraging the company’s finances.

• Monitor Director's Dual Role:
  Although efficient, the concentration of control in one individual should be balanced with sound governance practices to mitigate operational risks.

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