WRIGHT PLANNING AND DEVELOPMENT LIMITED

Executive Summary

Wright Planning and Development Limited exhibits solid financial health characterized by strong liquidity and increasing equity, typical of a healthy micro-entity. The company is well-positioned to meet short-term obligations and shows positive equity growth, though its small scale limits resilience. Continued prudent financial management and strategic growth planning will be key to sustaining and enhancing its financial wellness.

WRIGHT PLANNING AND DEVELOPMENT LIMITED - Analysis Report

Company Number: SC682728

Analysis Date: 2025-07-29 20:41 UTC

Financial Health Assessment of Wright Planning and Development Limited

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1. Financial Health Score: B

Explanation:
The company demonstrates a solid and improving financial position with a healthy net current asset position and increasing shareholders’ funds over the recent years. While it operates at a micro-entity level with limited scale and only one employee, the balance sheet shows good working capital management and no significant liabilities threatening solvency. The score is not an A primarily because the company is relatively young and small, with minimal equity and limited diversification, but the trends are positive.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Current Assets	35,339	Adequate short-term resources to meet obligations.
Current Liabilities	7,994	Low short-term debts, manageable with available assets.
Net Current Assets	27,345	Positive working capital indicating liquidity strength.
Shareholders’ Funds (Equity)	27,345	Equity has nearly doubled since 2022, showing capital growth.
Employee Count	1	Very small size, low fixed cost base but limited operational scale.
Account Category	Micro	Simplified reporting, reflecting small size and scope.

Interpretation:
The "vital signs" reflect a company with strong liquidity ("healthy cash flow potential") and increasing net worth. The rise in equity and net current assets from 2022 to 2023 suggests effective management of resources and controlled liabilities. The low current liabilities indicate the company is not under imminent pressure from creditors, a positive symptom of financial stability.

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3. Diagnosis

The financial "symptoms" indicate that Wright Planning and Development Limited is in good financial health for a micro-entity. The balance sheet shows a strong liquidity position with net current assets more than three times the current liabilities, which is a sign of financial robustness and ability to cover short-term commitments comfortably. The growth in shareholders’ funds from approximately £14.5k to £27.3k in one year is a positive sign of retained earnings or additional capital injection, strengthening the equity base.

However, the company is small with a single employee and modest share capital (£1), limiting its operational scale and financial resilience against larger market shocks. The company’s sector classification (Other service activities not elsewhere classified) suggests a niche or specialized business, which may mean limited diversification of income streams.

Overall, the company shows no symptoms of financial distress such as liquidity shortfalls, growing liabilities, or deteriorating equity. The healthy net working capital and improving shareholders’ funds are encouraging signs of good financial "vitality."

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4. Recommendations

• Maintain Positive Working Capital: Continue prudent management of current assets and liabilities to preserve liquidity and operational flexibility.

• Build Capital Reserves: Consider strategies to increase retained earnings or capital injection to enhance the equity base further, improving the company’s buffer against unforeseen expenses or downturns.

• Expand Operational Capacity: If business growth is an objective, evaluate opportunities to increase employee headcount and diversify service offerings to reduce dependency on a single revenue source.

• Monitor Cash Flow Cycles: Although current liquidity is strong, ensure regular cash flow forecasting to anticipate upcoming cash requirements and avoid potential liquidity crunches.

• Compliance and Reporting: Keep up-to-date with filing deadlines and consider voluntary audit or review procedures as the company grows, to enhance stakeholder confidence.

• Strategic Planning: Given the company’s early stage (incorporated in 2020), develop a medium-term strategic business plan to guide growth and financial management.

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