WINDBURN 2 LIMITED

Executive Summary

WINDBURN 2 LIMITED currently exhibits a stable but modest financial condition typical of a micro private company, with positive working capital and solvency. The company maintains healthy liquidity relative to liabilities but should focus on strengthening its capital base and carefully monitoring profitability to ensure sustainable growth. Continued compliance and proactive cash flow management will support its operational resilience going forward.

WINDBURN 2 LIMITED - Analysis Report

Company Number: SC717029

Analysis Date: 2025-07-20 17:17 UTC

Financial Health Assessment of WINDBURN 2 LIMITED

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1. Financial Health Score: B

Explanation:
WINDBURN 2 LIMITED demonstrates a stable financial footing with positive net current assets and net assets, a small but consistent capital base, and no overdue filings or obvious financial distress signals. However, the company’s modest cash reserves and low turnover (not explicitly stated but implied due to small scale) suggest limited operational scale and potential vulnerability to cash flow shocks. The absence of an audit and limited disclosure also restricts comprehensive insight, warranting cautious optimism but monitoring.

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2. Key Vital Signs

Metric	Value (31.12.2023)	Interpretation
Net Current Assets	£6,264	Shows working capital is positive, indicating the company can cover short-term liabilities.
Cash at Bank	£7,144	Healthy cash buffer relative to liabilities (£900), supports liquidity and day-to-day needs.
Current Liabilities	£900	Low short-term debts, manageable within available cash and receivables.
Net Assets / Shareholders' Funds	£6,264	Positive equity signals that the company’s assets exceed liabilities, a sign of solvency.
Called-Up Share Capital	£20	Very small equity base; typical for micro or small private companies but limits financial strength.
Employees	2	Small workforce consistent with a micro/small company profile, implying limited operational scale.
Overdue Filings	No	Compliance with filing deadlines indicates good governance and operational discipline.
Audit Status	Exempt (unaudited)	Small company exemption accepted, but less transparency for detailed financial assurance.

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3. Diagnosis: Financial Condition Analysis

WINDBURN 2 LIMITED presents as a small-scale, micro to small private company in a niche business support sector (SIC 82990). The company's "vital signs" indicate a generally healthy financial position with positive working capital and net asset value, demonstrating the balance sheet's ability to withstand immediate financial demands. The cash position is modest but comfortably covers short-term liabilities, suggesting a "healthy cash flow" scenario for the scale of operations.

The low level of called-up share capital and small number of employees reflect the company's limited operational size and potentially constrained capacity for growth without additional investment or revenue expansion. The slight decrease in net assets from £7,397 in 2022 to £6,264 in 2023 may imply minor operational losses or increased costs, creating a "symptom of mild financial strain," though not alarming at this stage.

The absence of an audit is standard for a company of this size but means less external validation of financial health. Directors have confirmed the company's going concern status, which aligns with the available liquidity and solvency metrics.

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4. Recommendations: Strategic Financial Wellness Actions

• Enhance Cash Flow Management:
  Maintain or grow the current cash reserves to build a stronger buffer against unexpected expenses or downturns. Consider cash flow forecasting to anticipate periods of strain.

• Increase Capital Base:
  Explore options to raise additional equity, either through new share issues or capital injections, to strengthen the financial foundation and support potential growth.

• Monitor Profitability Closely:
  Since net assets have slightly declined, implement tighter cost controls or revenue growth initiatives to reverse this trend and avoid escalating "symptoms" of loss.

• Maintain Compliance and Transparency:
  Continue timely filing of accounts and confirmation statements. Consider voluntary audit or independent review if the company grows, to increase stakeholder confidence.

• Consider Growth and Diversification:
  Given the small size and narrow SIC classification, assess opportunities to expand service offerings or markets to mitigate risk concentration and improve financial robustness.

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