CS SURVEY LTD

Executive Summary

CS SURVEY LTD has shown a commendable recovery from previous financial difficulties, moving from negative equity to a modest positive net asset position. Despite this improvement, the company’s liquidity remains tight, and its financial structure fragile, warranting careful cash flow management and strengthening of equity. With focused operational controls and strategic financial planning, the company can build resilience and support sustainable growth.

CS SURVEY LTD - Analysis Report

Company Number: 12841650

Analysis Date: 2025-07-20 15:19 UTC

Financial Health Assessment for CS SURVEY LTD (Year ended 31 August 2024)

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1. Financial Health Score: C (Fair)

Explanation:
CS SURVEY LTD exhibits signs of recovery from previous financial distress, moving from negative net assets in 2022 and 2023 to a positive but modest net asset position in 2024. While the turnaround is promising, the company’s thin net asset base and very tight working capital margin indicate fragility. The overall financial health is fair but remains vulnerable to operational or market shocks.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	745	Very low investment in long-term assets, typical for micro entities.
Current Assets	183,261	Healthy cash and receivables, showing strong liquidity potential.
Current Liabilities	182,494	Very close to current assets, indicating tight liquidity balance.
Net Current Assets (Working Capital)	767	Positive but very minimal; a sign of fragile short-term financial health.
Net Assets (Equity)	1,512	Positive net worth after two years of negative equity, showing recovery.
Share Capital	100	Minimal, consistent with a micro private limited company.

Interpretation of Vital Signs:

• The company’s working capital (Net Current Assets) is akin to a patient with a pulse but weak blood flow — it’s positive but just barely sustaining operations without strain.
• The net assets turning positive after two years of deficits is a key sign of improvement, like a patient showing early signs of recovery after illness.
• Fixed assets remain minimal, indicating the company’s business model is likely service or consultancy based, with low capital intensity.

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3. Diagnosis

CS SURVEY LTD experienced financial distress during 2022 and 2023, with negative net assets indicating the business was technically insolvent on a balance sheet basis. This is a symptom of either operational losses, cash flow difficulties, or accumulated liabilities exceeding assets.

However, the latest financial year shows a small but important recovery, with net assets improving to £1,512 and net current assets positive for the first time in three years. Current assets have more than doubled, suggesting improved cash generation or collection of receivables, while liabilities have increased but remain in check.

The company’s financial condition is stable but vulnerable. The narrow margin between current assets and liabilities means any delay in collections or unexpected expenses could cause liquidity stress. The minimal fixed assets and small equity base limit the company’s capacity to absorb shocks or invest in growth.

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4. Recommendations

To strengthen the financial health of CS SURVEY LTD and ensure sustainable growth, the following actions are advisable:

• Improve Working Capital Cushion: Aim to increase net current assets by managing receivables efficiently and negotiating better payment terms with suppliers to avoid cash flow tightness.
• Build Equity Base: Consider retaining earnings or injecting fresh capital to strengthen shareholders’ funds, providing a buffer against future losses or unexpected costs.
• Cost Control and Profitability: Monitor operating expenses closely to maintain profitability, preventing recurrence of prior years’ losses that led to negative equity.
• Regular Financial Monitoring: Implement monthly financial reviews focusing on cash flow forecasts and liquidity ratios to detect early symptoms of distress.
• Explore Asset Acquisition Strategically: While fixed assets are minimal now, acquiring necessary equipment or technology could improve operational efficiency if justified by business growth.
• Engage Professional Advice: Consider periodic financial health check-ups with financial advisors to guide strategic decisions and optimize capital structure.

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Medical Analogy Summary:
CS SURVEY LTD has emerged from a period of financial "illness" characterized by negative net assets (akin to a low immune response). The company now shows signs of "convalescence" with modest positive equity and working capital. However, the "immune system" remains weak, requiring vigilance and supportive care to avoid relapse into distress.

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