WS TAKEAWAY LTD

Executive Summary

WS TAKEAWAY LTD demonstrates a stable but nascent financial condition with positive working capital and modest equity, typical for a start-up micro-entity. The company maintains good short-term liquidity and compliance but should focus on building financial reserves and transparency to ensure sustainable growth and resilience. Regular monitoring and careful working capital management are advised to maintain financial wellness as the business develops.

WS TAKEAWAY LTD - Analysis Report

Company Number: 14983140

Analysis Date: 2025-07-20 16:47 UTC

Financial Health Assessment of WS TAKEAWAY LTD

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1. Financial Health Score: B-

Explanation:
WS TAKEAWAY LTD, a micro-entity in the take-away food sector, shows signs of a stable but nascent financial structure. The company is young (incorporated in mid-2023) with limited but positive net assets and a modest net current asset position indicating a cautiously healthy liquidity status. However, the relatively low net assets and working capital, combined with limited financial history and absence of profit and loss details, suggest the company is still in an early, potentially vulnerable phase.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£9,695	Short-term resources, mainly cash and receivables, represent the immediate liquidity pool.
Current Liabilities	£6,642	Short-term debts due within 12 months.
Net Current Assets (Working Capital)	£3,905	Positive working capital indicates the company can cover its short-term obligations, a "healthy pulse" for day-to-day operations.
Net Assets (Equity)	£1,986	The residual value after liabilities; a positive but modest buffer indicating limited accumulated capital.
Employee Count	4	Small workforce typical for a micro-entity, suggesting lean operations.
Account Category	Micro	Simplified reporting, reflecting a small-scale business.
Filing Status	Up to date, no overdue filings	Compliance is critical for legal health and investor confidence.

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3. Diagnosis: What the Numbers Reveal About Business Health

• Liquidity and Cash Flow "Vital Signs":
  The company’s net current assets of £3,905 indicate sufficient short-term liquidity to meet obligations, akin to a patient with a stable heartbeat—no immediate signs of distress. However, the relatively low cash and asset base means any unexpected expenses or cash flow interruptions could impact operations quickly.

• Capital Structure and Solvency:
  Shareholders’ funds of £1,986 show limited retained equity, typical for a start-up. This "financial muscle" is modest but positive, indicating the company is solvent but with minimal financial reserves. The absence of long-term liabilities or fixed assets in the balance sheet suggests a light asset base and minimal borrowing, reducing financial risk but also limiting growth capital.

• Operational Scale and Maturity:
  Being newly incorporated with only one financial year completed, WS TAKEAWAY LTD is in the early stages of business development. The lack of profit and loss data limits insight into profitability or operational efficiency. This is a critical "symptom" to monitor in future filings.

• Governance and Control:
  Full control by a single director/shareholder (Mr Sheng Wang) simplifies decision-making but can also concentrate risk. The company’s compliance with filing deadlines and exemptions from audit requirements reflect good governance for a micro-entity.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Financial Reporting Transparency:
  Although exempt, consider voluntarily preparing a profit and loss account to monitor profitability and cash flow trends. This will help detect early "symptoms" of financial stress such as declining margins or rising costs.

• Build Financial Reserves:
  Aim to retain profits to strengthen shareholders’ funds and create a buffer against unexpected expenses. Healthy reserves are like a strong immune system, enhancing resilience.

• Monitor Working Capital Carefully:
  Maintain positive net current assets by managing receivables, payables, and inventory efficiently to avoid liquidity crunches.

• Plan for Growth Investment:
  Explore opportunities for modest capital investment or financing to acquire fixed assets or improve operational capacity once stable profits are established.

• Regular Financial Health Checks:
  Implement periodic financial reviews to track key metrics and spot potential warning signs early, akin to routine health check-ups.

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