3B SOFT LIMITED

Executive Summary

3B Soft Limited has demonstrated a notable turnaround from negative net worth to a positive financial position within two years, reflecting improving liquidity and solvency. Despite these encouraging signs, the company maintains a tight working capital margin and minimal asset base, signaling a need for cautious management of cash flow and operational scaling. Strengthening liquidity buffers and expanding operational capacity will be key to sustaining this recovery and supporting future growth.

3B SOFT LIMITED - Analysis Report

Company Number: 14179565

Analysis Date: 2025-07-20 15:11 UTC

Financial Health Assessment of 3B SOFT LIMITED

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1. Financial Health Score: C+

Explanation:
3B Soft Limited shows a marked improvement in its financial position over the latest year, moving from significant net liabilities to a positive net asset position. However, the company’s overall financial health remains fragile, given its minimal fixed assets, tight working capital margin, and no recorded employees. This reflects an early-stage micro-entity that is still stabilizing its financial footing.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Net Assets (Shareholders’ Funds)	4,530	Positive but modest net asset base; turnaround from prior negative net worth (-16,157).
Current Assets	156,798	Healthy level of liquid assets (mainly cash or equivalents), showing improved liquidity.
Current Liabilities	151,787	High short-term obligations, nearly matching current assets, indicating tight liquidity margin.
Net Current Assets (Working Capital)	5,011	Positive but narrow buffer suggests limited cash flow cushion to cover short-term debts.
Fixed Assets	343	Minimal investment in long-term assets, typical for a software micro-entity.
Employee Count	0	No employees on record; possibly reliant on contractors or a single director.
Filing Status	Up to date	Accounts and returns filed timely; no overdue filings indicating compliance health.

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3. Diagnosis: Financial Health Overview

• Liquidity and Cash Flow: The company exhibits a "healthy cash flow" symptom, evidenced by a large increase in current assets, mainly cash or receivables, compared to the previous year. This is a critical vital sign showing improved ability to meet short-term obligations. However, the working capital margin is slim, meaning the company has only a small buffer before liquidity issues could arise if unexpected expenses occur.

• Solvency and Capital Structure: The transition from net liabilities in 2023 and 2022 to net positive shareholders’ equity in 2024 indicates a significant financial recovery or capital injection. This improvement suggests the company is no longer in distress and may have attracted new funding or generated operational cash inflows.

• Asset Base: The minimal fixed asset base is typical for a software development company at the micro scale. This points to low capital intensity and reliance on intellectual property or services rather than physical assets.

• Operational Sustainability: With zero employees reported, the company's operations may be highly dependent on the director or external contractors. This could be a symptom of a lean startup phase but also poses risks if key personnel are unavailable.

• Compliance and Governance: Timely filings and no indication of legal or regulatory issues reflect a stable governance environment, an important factor for ongoing financial health.

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4. Recommendations

• Strengthen Working Capital Buffer: Aim to increase net current assets to build a more comfortable liquidity cushion. This could be achieved by accelerating receivables, controlling payables, or maintaining higher cash reserves.

• Expand Asset Base Strategically: Consider investing in intangible assets such as software development tools, patents, or licenses that can enhance the company’s competitive edge and future earnings potential.

• Build Operational Capacity: Evaluate the need to hire key personnel or formalize contractor arrangements to ensure scalability and reduce operational risk.

• Monitor Cash Flow Regularly: Implement rigorous cash flow forecasting to detect early symptoms of liquidity stress, given the tight current asset-to-liability ratio.

• Explore Funding Options: If growth plans require, consider securing additional equity or debt financing to support expansion without compromising liquidity.

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