Company Number: 14125727

Analysis Date: 2025-07-20 15:56 UTC

Financial Health Assessment of CC 36 LIMITED

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1. Financial Health Score: C+

The company’s financial health is moderate but shows signs of mild stress. While it maintains positive net current assets and net assets, a decline in net assets and increasing current liabilities indicate some emerging pressures. The grade C+ reflects a business that remains solvent but requires attention and prudent management to sustain and improve financial wellness.

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2. Key Vital Signs

Vital Sign	2024 Value (£)	2023 Value (£)	Interpretation
Current Assets	362,931	176,130	Healthy increase in liquid and short-term assets, likely cash or receivables. Good sign of liquidity.
Current Liabilities	295,439	107,093	Significant increase in short-term obligations – a symptom of rising short-term debt or payables. Risk factor if not managed.
Net Current Assets	67,492	69,037	Positive but stable working capital; sufficient to cover short-term debts, though slightly diminished.
Net Assets (Equity)	48,938	56,943	Decline in net assets suggests retained earnings have decreased or liabilities have increased. A mild symptom of financial stress.
Average Employees	9	9	Stable workforce size, indicating operational consistency.

Interpretation:

• Liquidity (Current Assets vs. Current Liabilities): The company holds enough current assets to cover its current liabilities, which is a vital sign of healthy short-term financial stability.
• Working Capital: Positive and stable working capital indicates the company can meet its short-term obligations, but the slight reduction warns to monitor cash flow carefully.
• Equity Position: A reduction in shareholders’ funds signals either reduced profitability or increased liabilities—this needs to be addressed to prevent erosion of financial strength.

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3. Diagnosis

CC 36 LIMITED, operating in the takeaway food sector, is a micro-entity with a simple financial structure and a sole director/owner controlling all shares and voting rights. The company demonstrates a generally healthy liquidity position, akin to a patient with stable vital signs but presenting symptoms of mild financial fatigue.

The sharp increase in current liabilities from £107k to £295k within a year is a red flag, suggesting growing short-term obligations that may strain cash flow if not managed prudently. This “symptom” could be due to increased supplier credit, delayed payments, or rising short-term loans. Despite a doubling of current assets, the liabilities growth pace is faster, which slightly weakens the working capital cushion.

The decline in net assets from approximately £57k to £49k signals that the company’s retained earnings or equity base has diminished, possibly due to operational losses or higher expenses. While the company is not in distress, this trend hints at underlying financial pressure that requires care to avoid deterioration.

The company is compliant with filing requirements and maintains stable employment, which are positive signs indicating operational continuity.

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4. Recommendations

• Cash Flow Management: Implement tighter cash flow controls to manage and reduce current liabilities, especially focusing on accounts payable and short-term financing. This will help maintain a “healthy cash flow” and avoid liquidity crunches.

• Cost Control & Profitability: Conduct a detailed review of operating expenses and pricing strategy to improve profitability and rebuild equity reserves. This will address the “symptoms of profit erosion” indicated by falling net assets.

• Credit Terms Negotiation: Negotiate better payment terms with suppliers to spread out liabilities more evenly and ease short-term financial pressure.

• Reserves Monitoring: Monitor net assets regularly to ensure the equity base is preserved or enhanced, which is critical for long-term financial health.

• Financial Planning: Develop a rolling financial forecast incorporating working capital needs and planned investments to anticipate and mitigate risks early.

• Seek Professional Advice: Consider consulting a financial advisor or accountant to explore opportunities for tax efficiency, funding options, and financial restructuring if needed.

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