CREST NETWORKS UK LTD

Executive Summary

CREST NETWORKS UK LTD is a young micro-entity showing initial signs of financial stabilization after previous liquidity challenges. The company currently operates with very thin financial buffers and limited equity, placing it in a fragile position. Focused efforts on cash flow management, capital strengthening, and cost control are essential to improve resilience and support sustainable growth.

CREST NETWORKS UK LTD - Analysis Report

Company Number: 14070001

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

Financial Health Assessment: CREST NETWORKS UK LTD

---

1. Financial Health Score: C

Explanation:
The company demonstrates a fragile financial condition. While it remains solvent with positive net assets as of the latest year, the margin is extremely thin (£100). The company’s working capital is barely positive, indicating a precarious liquidity position. The very low net assets and minimal retained earnings reflect limited financial cushion, which restrains the company’s ability to absorb shocks or invest in growth. The score “C” reflects a borderline healthy state but with clear signs of financial stress that require attention.

---

2. Key Vital Signs

Metric	2025 Actual (£)	Interpretation
Current Assets	12,574	Increased from prior years—indicates a slight improvement in liquid resources.
Current Liabilities	12,474	Near equal to current assets—implies tight liquidity and limited buffer for short-term debts.
Net Current Assets	100	Positive but minimal working capital (“healthy cash flow” needed for daily operations).
Net Assets (Shareholders’ Funds)	100	Extremely low equity base—sign of limited financial resilience and minimal accumulated profits.
Employee Count	2	Small workforce consistent with micro-entity status.
Company Age	3 years	Young company, still in early growth phase.

Trend Notes:

• In the previous two years (2023 and 2024), net current assets were negative (-£1,039), indicating a short-term liquidity deficit (“symptom of distress”).
• The latest year shows a return to a positive net current asset position, but only just.
• Net assets have also improved from negative to positive, but remain very low, suggesting no significant retained earnings or capital injection.

---

3. Diagnosis

CREST NETWORKS UK LTD is a micro-entity telecommunications business operating with minimal financial buffers. The company’s “vital signs” show a marginal improvement in liquidity and solvency after experiencing working capital deficits in previous years. This turnaround to a barely positive net current asset position is encouraging but still indicates the company is operating on a knife-edge.

The low net assets and shareholders’ funds reveal that the company has limited accumulated earnings or capital reserves. This “thin financial pulse” leaves it vulnerable to unexpected expenses, delayed customer payments, or any downturn in revenue.

The small workforce and micro-entity status imply limited scale and resources, typical for a young company. The directors have managed to stabilize the balance sheet, but the business is still in a delicate state—similar to a patient recovering but not yet fully healthy.

---

4. Recommendations

To strengthen CREST NETWORKS UK LTD’s financial health, the following actions are advised:

• Improve Cash Flow Management:
  Tighten control on receivables and payables to increase working capital buffer. Ensure invoices are issued promptly and collections are efficient to maintain “healthy cash flow.”

• Increase Capital Reserves:
  Consider capital injection or retaining more profits to build up equity and net assets. This will improve resilience against financial shocks.

• Cost Control and Efficiency:
  Monitor operational costs closely to maintain profitability, especially given the small scale. Avoid unnecessary expenditures that could strain liquidity.

• Plan for Growth and Diversification:
  Explore opportunities to increase revenues or diversify services within the telecommunications sector to build a more stable income base.

• Regular Financial Monitoring:
  Maintain frequent reviews of financial metrics, especially liquidity ratios, to detect and address “symptoms of distress” early.

• Engage Professional Advice:
  Seek expert financial advice periodically to develop robust budgeting, forecasting, and risk management strategies.

---