ASTRAL IT LTD

Executive Summary

Astral IT Ltd is a financially sound micro-entity with positive net assets and adequate liquidity, reflecting a healthy financial start in its first year. The company currently operates on a lean model with no employees, indicating dependence on the director's expertise. To sustain and grow, the company should focus on detailed financial monitoring and plan for operational scalability.

ASTRAL IT LTD - Analysis Report

Company Number: 14460707

Analysis Date: 2025-07-29 16:30 UTC

Financial Health Assessment: Astral IT Ltd (as of 30 November 2023)

---

1. Financial Health Score: B

Explanation:
Astral IT Ltd, a micro-entity IT services company incorporated recently in late 2022, shows a stable foundational financial position with positive net assets and working capital. The company’s financials reflect a healthy start with no evident distress symptoms. However, the small scale and absence of employees highlight a very early stage or possibly a sole director-run operation, which carries some inherent risks around scalability and resource constraints. The lack of profit & loss data and cash flow details limits deeper insight, so the score reflects a cautiously positive outlook.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	6,999	Modest investment in long-term assets, typical for a micro IT service company.
Current Assets	11,876	Cash and short-term receivables sufficient to cover short-term debts.
Current Liabilities	9,419	Short-term obligations are present but manageable.
Net Current Assets	2,457	Positive working capital, indicating ability to meet immediate liabilities without stress.
Net Assets (Equity)	9,456	Positive equity base, showing the company is solvent with assets exceeding liabilities.
Employees	0	No staff employed; this may indicate reliance on the director alone or subcontractors.
Company Age	1 year	Newly incorporated, so financial history is limited, which is a factor in risk assessment.

Vital Signs Interpretation:

• Healthy Cash Flow Indicator: Positive net current assets suggest liquidity is adequate, though no cash flow statement is available.
• Stable Solvency: Positive net assets and shareholders’ funds imply no financial distress or over-leverage.
• Symptom of Limited Scale: Zero employees and micro entity status suggest a lean operation, potentially limiting growth without additional investment or hiring.

---

3. Diagnosis

Astral IT Ltd’s financial "vitals" resemble a patient in early adulthood: healthy, no apparent chronic issues, but still in the developmental phase with limited operational scale and financial history. The company is solvent and liquid, with enough short-term resources to cover immediate debts, suggesting no symptoms of financial distress such as overtrading or insolvency risk.

The absence of employees and limited fixed assets might indicate a business model heavily reliant on the director’s personal expertise or potentially subcontracted services. This operational structure can be efficient but may also present risks if demand grows rapidly or the director faces capacity constraints.

The micro-entity exemption and lack of audit mean less granularity in reported data, limiting visibility into profitability, cash flow dynamics, and potential contingent liabilities.

---

4. Recommendations

• Monitor Cash Flow Regularly: Although working capital is positive, detailed cash flow monitoring is vital for early-stage companies to avoid liquidity crunches as business activity grows.
• Consider Building a Profit & Loss Record: Even if not mandatory, maintaining detailed income and expense tracking will help diagnose profitability and operational efficiency.
• Plan for Scalability: If growth is anticipated, plan for staffing or subcontracting strategies to avoid over-reliance on the single director. This includes budgeting for employee costs or resource expansion.
• Maintain Compliance and Timely Filings: Continue maintaining up-to-date accounts and confirmation statements to avoid penalties and maintain stakeholder confidence.
• Engage a Financial Advisor or Accountant: As business complexity grows, professional advice can help optimize tax planning, financial controls, and growth strategies.

---