BK SENOL LTD

Executive Summary

BK SENOL LTD shows a healthy and improving financial position with steady growth in net assets and strong working capital, reflecting good financial management. The company operates with no distress signals and maintains compliance with filing requirements. To enhance financial wellness, it should focus on increasing equity buffers, maintaining liquidity, and preparing for strategic growth.

BK SENOL LTD - Analysis Report

Company Number: 12942881

Analysis Date: 2025-07-29 18:11 UTC

Financial Health Assessment Report for BK SENOL LTD

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1. Financial Health Score: B

Explanation:
BK SENOL LTD demonstrates a solid and improving financial position typical for a micro-entity in its growth phase. The company shows healthy net assets growth, strong working capital, and modest but positive fixed asset investments. The absence of overdue filings and a stable management structure contribute positively. However, being a micro-entity with relatively low share capital and limited financial disclosures, a "B" grade reflects good health but with room for enhanced financial robustness and diversification.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Net Assets	£55,963	Net assets have increased steadily from £9,004 in 2020, showing capital accumulation and retained earnings growth—akin to a patient gaining strength over time.
Net Current Assets (Working Capital)	£30,533	A strong positive working capital indicates the company has sufficient short-term resources to cover liabilities, reflecting a healthy cash flow "pulse."
Fixed Assets	£25,430	Gradual increase in fixed assets suggests reinvestment in business infrastructure, indicating ongoing business development and stability.
Share Capital	£100	Very low share capital, typical for micro-entities, but does not undermine financial health at this stage.
Employee Count	9 (average)	Slight growth in workforce suggests business expansion and operational scaling.
Company Status	Active, No liquidation	No distress signals from company status; operating normally.
Filing Compliance	Up to date, no overdue filings	Compliance with statutory obligations indicates good corporate governance "vital signs."

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3. Diagnosis: Business Financial Health Overview

BK SENOL LTD exhibits a strong "cardiovascular system" of finances, with increasing net assets and robust working capital ensuring liquidity to meet short-term obligations easily. The consistent growth in fixed assets and current assets reflects a business that is reinvesting and expanding steadily without overextending itself. The company’s micro-entity status means it operates on a modest scale but is maintaining sound financial discipline.

There are no symptoms of financial distress such as negative net assets, excessive liabilities, or overdue statutory filings. The change in directors appears orderly and does not indicate instability. The significant control held by Mr. Senol Erdogan (75-100% ownership and voting rights) signals clear leadership and potential for decisive management, which is often beneficial for small companies.

Overall, BK SENOL LTD’s financial health is analogous to a patient with a stable heart rate and no signs of infection—functioning well but requiring ongoing monitoring and prudent management to sustain growth.

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4. Recommendations to Improve Financial Wellness

• Increase Share Capital or Equity Buffer: While current net assets are positive, increasing share capital or injecting additional equity could strengthen the company’s financial resilience against unexpected shocks.

• Enhance Profit Retention: Aim to build up retained earnings by controlling costs and improving profitability to further increase net assets and shareholder funds.

• Monitor Cash Flow Regularly: Maintain the healthy working capital ratio by closely managing receivables and payables to ensure liquidity remains strong.

• Prepare for Growth Investments: Consider strategic planning for medium-term investments in marketing, equipment, or services to leverage the current growth momentum.

• Corporate Governance: Continue adherence to filing deadlines and transparent reporting to maintain good standing and avoid regulatory penalties, which can be detrimental to financial health.

• Succession and Leadership Planning: Given the concentrated ownership/control, consider formalizing succession plans or expanding leadership roles to mitigate risks associated with single-person control.

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