WIDEAWAKE PROJECTS LTD

Executive Summary

WIDEAWAKE PROJECTS LTD is a financially sound micro-entity with a positive equity base and healthy working capital. While still in early stages, its conservative approach to asset investment and liabilities sets a stable foundation. Continued prudent cash flow management and strategic planning will be key to sustaining and improving its financial health.

WIDEAWAKE PROJECTS LTD - Analysis Report

Company Number: 15614422

Analysis Date: 2025-07-29 12:18 UTC

Financial Health Assessment of WIDEAWAKE PROJECTS LTD

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1. Financial Health Score: B

Explanation:
WIDEAWAKE PROJECTS LTD, a micro-entity recently incorporated in April 2024, demonstrates a sound financial footing for its early stage of operations. The company shows positive net assets and net current assets, indicating a healthy liquidity position and a solid equity base relative to its size. The absence of overdue filings further supports good compliance and operational discipline. However, the presence of long-term liabilities and limited financial history due to its infancy slightly temper the score from an "A" to a "B," indicating room for cautious optimism but also the need for vigilant financial management.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	35,811	Investment in long-term resources, a positive sign of capital formation for future operations.
Current Assets	57,509	Represents liquid and short-term assets; good "cash in the bank" and receivables position.
Current Liabilities	34,437	Obligations due within a year; manageable given current assets.
Net Current Assets (Working Capital)	23,072	Positive working capital indicates ability to cover short-term debts comfortably.
Total Assets Less Current Liabilities	58,883	Indicates overall asset base after covering current debts; healthy buffer.
Creditors Due After One Year	24,520	Long-term debts present; signifies some leverage but requires monitoring.
Net Assets / Shareholders’ Funds	33,351	Equity base reflecting owners' stake; positive and stable given company age.

Additional Observations:

• Average employee count of 2 aligns with micro-entity status, consistent with a small management consultancy operation.
• No audit required or performed, typical for micro-entities, but directors remain responsible for accuracy.
• No overdue statutory filings, indicating good corporate governance and compliance.

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3. Diagnosis: Financial Health Analysis

WIDEAWAKE PROJECTS LTD exhibits the vital signs of a young but financially stable company. The positive net current assets ("healthy cash flow reserves") suggest the company can meet its short-term obligations without distress. The presence of both fixed assets and long-term liabilities ("investment with measured borrowing") indicates strategic capital investment balanced with moderate leverage.

As a micro-entity in management consultancy, the scale and complexity of operations are limited, and the financials reflect a conservative and prudent start. The absence of accumulated losses or negative equity ("no symptoms of financial distress") bodes well.

However, the company’s infancy means there is limited financial history to assess trends or profitability. The directors should remain vigilant on cash flow management, given the long-term liabilities, to avoid liquidity crunches as the business grows.

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4. Recommendations: Steps to Enhance Financial Wellness

• Maintain Strong Cash Flow Management: Continue to monitor working capital closely to ensure sufficient liquidity, especially as the company scales.
• Manage Long-Term Liabilities Prudently: Develop a clear plan for servicing or reducing long-term debts to avoid financial strain.
• Build Financial History and Reporting: Consider voluntarily preparing detailed management accounts and forecasts to aid strategic planning and stakeholder confidence.
• Compliance Vigilance: Maintain timely statutory filings to prevent penalties and uphold good corporate standing.
• Growth Investment: Evaluate reinvestment opportunities in fixed assets or human resources to support business expansion while balancing risk.
• Risk Management: Regularly review financial risks, including exposure to client payment delays or unexpected costs, to mitigate potential distress signals early.

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