WORD OF GOD MINISTRY IN LOVE

Executive Summary

WORD OF GOD MINISTRY IN LOVE exhibits stable financial health with positive net assets and zero liabilities, reflecting prudent cash management in a small-scale religious organization. The company is financially solvent but operates with limited resources and no fixed assets, indicating cautious but stable operations. Continued focus on liquidity and gradual growth will support sustained financial wellness.

WORD OF GOD MINISTRY IN LOVE - Analysis Report

Company Number: 13342382

Analysis Date: 2025-07-29 20:35 UTC

Financial Health Assessment: WORD OF GOD MINISTRY IN LOVE

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1. Financial Health Score: B

Explanation:
The company shows stable and modest growth in net assets and working capital, indicating a sound but cautious financial position typical of a small, non-profit religious organization. The absence of liabilities and consistent positive net current assets are good signs. However, the lack of fixed assets and minimal operational scale limit the financial robustness, hence a grade of B reflecting healthy but limited financial depth.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£0	No long-term assets; typical for such entities.
Current Assets (Prepayments)	£5,391	Positive short-term assets, showing available resources.
Current Liabilities	£0	No short-term debts; excellent liquidity.
Net Current Assets	£5,391	Positive working capital; "healthy cash flow" symptom.
Shareholders’ Funds (Equity)	£5,391	Positive net worth; financial base is solid.
Employee Count	1	Very small operational scale; minimal overhead.

Interpretation:

• The company operates with no debt and increasing net current assets, a strong "heartbeat" indicating no distress signals.
• The positive trend in net assets from £2,035 in 2021 to £5,391 in 2024 shows gradual accumulation of financial reserves.
• Zero fixed assets suggest a reliance on intangible or service-based operations rather than physical infrastructure.
• Minimal staff and prepayments as current assets likely represent advance payments or receivables, reflecting prudent cash management.

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3. Diagnosis

The financial "symptoms" indicate a stable and solvent entity with no signs of financial distress. The company maintains a positive equity position and increasing working capital without incurring liabilities. This suggests a conservative approach to finances, likely relying on donations, grants, or small-scale funding consistent with its religious activities.

However, the absence of fixed assets and low turnover (implied by micro-entity status and minimal balance sheet size) suggests limited operational scale and potential vulnerability to unexpected expenses or income shortfalls.

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4. Recommendations

• Maintain Healthy Cash Flow: Continue the prudent management of prepayments and current assets to ensure liquidity remains strong, as this is the company's strongest vital sign.
• Build Financial Resilience: Consider creating a small reserve fund or investing in modest fixed assets if aligned with operational goals to strengthen long-term sustainability.
• Increase Transparency and Reporting: Even though audit exemption applies, maintaining clear financial records and planning can help attract support and ensure compliance.
• Explore Growth Opportunities: Carefully assess opportunities to expand activities or funding sources to increase financial capacity without risking overextension.
• Monitor Operational Costs: With only one employee, keep overheads low and ensure any expansion is matched by income growth to avoid cash flow strain.

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