WHERE NEXT LTD

Executive Summary

WHERE NEXT LTD exhibits a healthy and improving financial condition, with strong working capital and equity growth supporting operational stability. While the company should monitor its reduced current assets to maintain liquidity, overall financial health is solid for a micro-entity in the real estate sector. Continued prudent management and attention to cash flow will support sustained business wellness.

WHERE NEXT LTD - Analysis Report

Company Number: 14175463

Analysis Date: 2025-07-20 12:23 UTC

1. Financial Health Score: B

Explanation: WHERE NEXT LTD demonstrates a solid and improving financial position for a micro-entity. The company shows healthy net current assets and net assets growth year-on-year, indicating stable working capital and retained equity. However, the small scale and limited asset base, along with modest liabilities, suggest some vulnerability to external shocks or liquidity stress. Overall, the company is financially sound but should continue prudent management to maintain resilience.

2. Key Vital Signs:

• Fixed Assets: £438 (2024) down slightly from £548 (2023) Interpretation: Minimal long-term investment, typical for a micro real estate agency, focusing on operational rather than capital-intensive assets.

• Current Assets: £1,393 (2024), decreased from £2,785 (2023) Interpretation: Significant reduction in liquid or short-term assets which could reflect cash use or reduction in receivables; needs monitoring to ensure liquidity remains sufficient.

• Current Liabilities: £205 (2024) sharply down from £2,353 (2023) Interpretation: Major reduction in short-term debts or payables, indicating improved ability to meet immediate obligations—a positive sign of liquidity improvement.

• Net Current Assets: £1,188 (2024) increased from £432 (2023) Interpretation: Strong improvement in working capital, meaning the company has more short-term resources than short-term obligations, supporting smooth day-to-day operations.

• Net Assets / Shareholders Funds: £1,226 (2024) up from £580 (2023) Interpretation: Equity has more than doubled, indicating accumulation of retained earnings or capital injection, enhancing financial stability and shareholder value.

• Accruals and Deferred Income: £400 (both years) Interpretation: Some deferred income or accrued expenses remain constant; manageable but should be tracked to avoid surprises.

3. Diagnosis:

The financial "vitals" show a company with stable and improving liquidity and net worth. The marked reduction in current liabilities coupled with a maintained asset base points to effective management of short-term obligations. The increase in net assets and shareholders' funds signals growth in retained earnings or capital, which strengthens the company's financial "immune system." However, the decrease in current assets warrants attention to ensure that cash flow remains healthy and that working capital does not become strained. Given the micro-entity status and single-director operation, the financial profile fits a small but stable real estate agency with no signs of distress or insolvency.

4. Recommendations:

• Maintain strong cash flow discipline: With reduced current assets, it is essential to monitor cash inflows and outflows closely to avoid liquidity crunches.

• Review deferred income and accruals: Understand the nature of the £400 accruals/deferred income to ensure these are managed appropriately and do not mask underlying liabilities.

• Explore modest asset investment: Consider if small investments in fixed assets or technology could improve operational efficiency without jeopardizing liquidity.

• Continue prudent liability management: The dramatic reduction in current liabilities is positive; maintain this trend to ensure financial flexibility.

• Plan for growth cautiously: As the company grows, consider moving beyond micro-entity reporting to provide more comprehensive financial insights, aiding better strategic decisions.

• Maintain compliance: Filing accounts and confirmation statements on time, as done currently, avoids penalties and maintains good standing.

Medical analogy: WHERE NEXT LTD’s financial "vital signs" portray a patient with a strong heart (equity), stable blood pressure (liquidity), and no symptoms of distress. Some caution is warranted around the recent drop in "energy reserves" (current assets), suggesting the need for careful lifestyle (cash flow) management to ensure continued wellness.