WOBURN ELECTRICAL GROUP LIMITED

Executive Summary

Woburn Electrical Group Limited, a micro-entity electrical installation start-up, shows a modest but stable financial position in its first reporting period with a small positive working capital and equity base. While no distress signs are evident, the company's financial health is fragile due to limited cash reserves and early-stage operations. Careful cash flow management and growth planning are essential to strengthen its financial wellness and ensure sustainable development.

WOBURN ELECTRICAL GROUP LIMITED - Analysis Report

Company Number: 15207833

Analysis Date: 2025-07-20 16:26 UTC

Financial Health Assessment for Woburn Electrical Group Limited

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1. Financial Health Score: C

Explanation:
As a newly incorporated micro-entity (incorporation in October 2023) with its first financial period ending March 2024, Woburn Electrical Group Limited shows basic but stable initial financial footing. The company has modest net current assets and shareholders’ funds, indicating a positive but very limited working capital buffer. The score reflects a "young" financial patient with no severe distress symptoms but still in early stages of business development without a track record to confirm robust financial health.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	40,488	Modest level of liquid or near-liquid assets available to meet short-term obligations.
Current Liabilities	39,140	Short-term debts are almost equal to current assets, suggesting tight liquidity.
Net Current Assets (Working Capital)	1,348	Positive but very small buffer. Healthy cash flow would show a larger positive balance.
Shareholders’ Funds (Equity)	1,348	Indicates the owners’ stake and residual interest. Small but positive equity.
Average Number of Employees	1	Very small operation, likely a start-up phase.
Account Category	Micro	Gives limited financial disclosures but suitable for the size and stage.

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3. Diagnosis

Underlying Business Health:
The company’s financial "vital signs" suggest a stable but fragile condition typical of a start-up micro-business. The small positive working capital signals that the company can cover its immediate liabilities, but only just—there is minimal cushion to absorb unexpected expenses or delays in receivables.

The absence of fixed assets, profits, or retained earnings means the business is in its infancy, relying on initial capital or short-term financing. The single employee count and early stage incorporation date further support this startup status.

Symptoms to Monitor:

• Very tight liquidity, which could become a risk if revenues or cash inflows do not grow as planned.
• Limited equity base may constrain the ability to raise funds or absorb losses.
• No profit or loss details available yet; profitability remains uncertain.

There are no explicit signs of financial distress such as overdue filings, negative equity, or excessive liabilities. However, the company’s "financial pulse" is delicate and requires careful management to build strength.

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4. Recommendations

To improve the financial wellness and strengthen the company's financial health, the following steps are advised:

• Build Cash Reserves: Aim to increase current assets (cash or equivalents) to create a more comfortable working capital buffer. This could be through improved billing cycles, cost control, or additional equity injections.
• Monitor Cash Flow Closely: Implement strong cash flow forecasting and management to avoid liquidity crunches. Early detection of cash shortages allows timely corrective actions.
• Plan for Growth: Develop a clear business plan with revenue and profitability targets to transition from a start-up to a stable operational phase. Profit generation will improve equity and financial resilience.
• Consider Financing Options: If growth requires capital, explore appropriate funding such as bank loans, investor funds, or grants suitable for small businesses in electrical installation.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Track Key Metrics: As operations develop, start monitoring profitability ratios, debtor days, creditor days, and gross margins to diagnose business health more deeply.

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Medical Analogy Summary

Woburn Electrical Group Limited is like a newborn business patient with vital signs within normal limits but very fragile reserves. Its financial pulse is steady but weak, requiring nurturing and careful financial management to ensure growth into a robust and thriving business adult. Early intervention to build cash flow strength and monitor liabilities will help prevent symptoms of distress such as cash shortages or solvency issues.

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