1/ST GLOBAL WAGERING SOLUTIONS LTD

Executive Summary

1/ST GLOBAL WAGERING SOLUTIONS LTD demonstrates a stable and improving financial position with positive net assets and working capital growth, supported primarily by intercompany financial support. The company is financially healthy but reliant on group backing, indicating the need to diversify revenue sources to enhance independent cash flow and reduce dependency. With prudent management and strategic growth, the company’s financial outlook remains positive.

1/ST GLOBAL WAGERING SOLUTIONS LTD - Analysis Report

Company Number: 13715581

Analysis Date: 2025-07-19 11:55 UTC

Financial Health Assessment for 1/ST GLOBAL WAGERING SOLUTIONS LTD
Incorporated: November 2021 | Industry: Data processing, hosting and related activities (SIC 63110)
Status: Active | Account Category: Small | Last Financial Year End: 31 December 2023

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1. Financial Health Score: B

Explanation:
The company demonstrates a solid and improving financial position over the past two years, with positive net assets and growing working capital, supported by intercompany financial arrangements. While the business exhibits healthy liquidity and solvency, its financial scale remains modest and reliant on group support, preventing a top-tier rating. The score "B" reflects a stable, low-risk financial condition but with some dependency on the parent group’s support and no significant independent earning power disclosed.

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2. Key Vital Signs

Metric	2023 Value (£)	2022 Value (£)	Interpretation
Current Assets	100,733	79,070	Increased availability of short-term assets, mostly cash and receivables.
Cash at Bank	41,916	36,848	Healthy cash reserves with a positive trend.
Debtors (Receivables)	58,817	42,222	Growing amounts owed by group undertakings; reflects intercompany balances.
Current Liabilities	68,215	64,708	Slight increase in short-term obligations, manageable relative to assets.
Net Current Assets (Working Capital)	32,518	14,362	Strong improvement indicating better short-term financial health.
Net Assets (Equity)	32,518	14,362	Positive and growing shareholder equity – a sign of financial strength.
Employee Count	6 (2023)	5 (2022)	Small, stable workforce consistent with small company status.

Additional Observations:

• The company's turnover is based on an intercompany cost-plus 5% service agreement, indicating limited external revenue generation.
• The going concern assumption is supported by written assurances from a related group company, reflecting external financial backing critical to ongoing operations.
• No significant fixed assets or long-term liabilities are reported, suggesting a lean asset base.
• Creditors include tax and social security liabilities, consistent with operational compliance.

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3. Diagnosis: Financial Condition and Business Health

The company exhibits vital signs of financial wellness, including positive working capital and net assets that have more than doubled in one year. The increased cash balance and receivables from group companies indicate strong internal funding and support. However, the financial health is heavily reliant on intercompany loans and the parent group’s commitment to ongoing financial backing, which acts like a "life support system" for the business.

The business operates with low financial risk—no signs of distress such as overdue filings or significant liabilities beyond manageable levels. The increase in working capital suggests improved operational liquidity, akin to a patient showing recovery in vital blood markers.

Nonetheless, the reliance on intercompany transactions rather than third-party customers limits the company's independent cash flow generation, which reduces financial resilience and could be a symptom of limited market penetration or early-stage development.

No auditor qualifications or warnings are present, and the company complies with filing deadlines, indicating good governance and financial discipline.

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4. Recommendations: Actions to Enhance Financial Wellness

1. Diversify Revenue Streams:
   To reduce dependency on group support, explore expanding external client base or new markets to generate independent revenue and improve cash flow "autonomy."

2. Strengthen Cash Flow Management:
   Maintain or increase cash reserves to buffer against unforeseen expenses or operational volatility, ensuring a "healthy cash flow pulse."

3. Monitor Intercompany Balances:
   Regularly review and formalise intercompany loan agreements and repayments to avoid potential liquidity risks or conflicts, ensuring transparency and compliance.

4. Cost Control and Efficiency:
   With a small but growing workforce, implement efficiency measures to maintain low overheads while supporting business growth, preserving operational "fitness."

5. Strategic Planning for Growth:
   Develop a clear strategic plan to scale beyond the current small company profile, including investment in marketing, product development, or partnerships to improve independent profitability.

6. Maintain Compliance and Governance:
   Continue timely filings and maintain strong corporate governance to avoid penalties and preserve stakeholder confidence.

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