CYBER ASK LTD

Executive Summary

CYBER ASK LTD is a micro-entity startup with a lean financial structure and positive net current assets supported by prepayments. While its financial health is currently stable, it faces typical early-stage risks including limited liquidity and revenue generation. Focused cash flow oversight and strategic growth initiatives will be critical to improve financial resilience and ensure sustainable business development.

CYBER ASK LTD - Analysis Report

Company Number: 15113248

Analysis Date: 2025-07-20 14:21 UTC

Financial Health Assessment: CYBER ASK LTD as of 30 September 2024

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1. Financial Health Score: C

Explanation:
CYBER ASK LTD is a newly incorporated micro-entity, with very limited financial activity and scale. The financial figures show minimal assets and liabilities, typical for a startup in its first year of trading. While there are no alarming signs of distress, the company’s financial footprint is small and cash resources appear constrained relative to liabilities, suggesting a fragile but stable position at this early stage.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	25	Very low fixed asset base; likely minimal investment in equipment or property, typical for a consultancy.
Current Assets	14	Extremely low current assets, indicating minimal cash or receivables on hand.
Prepayments and Accrued Income	1,525	Significant prepaid expenses or income accrued, which may reflect upfront payments or deferred revenues.
Current Liabilities	750	Current liabilities exceed current assets (14), but net current assets are positive due to prepayments.
Net Current Assets	789	Positive working capital suggests the company can cover short-term obligations.
Total Net Assets (Equity)	814	Small equity base; typical for a startup with limited capital injection.
Employees	0	No employees, indicating reliance on owner or outsourced services; low fixed costs.

Additional Notes:

• The company is classified as a micro-entity, exempt from audit, which means reporting requirements are minimal and figures are simplified.
• The director is also the sole significant controller, indicating centralized management.
• No overdue filings and no signs of legal or regulatory distress.
• The industry (SIC 62020) is IT consultancy, which often has low capital intensity but relies heavily on intellectual capital.

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3. Diagnosis: Financial Condition Overview

CYBER ASK LTD’s financial "vital signs" reveal a startup in the incubation phase. The company shows signs of healthy initial capitalization with modest shareholder funds (£814) and positive net current assets (£789), mainly buoyed by prepayments/accrued income. The imbalance between current assets (£14) and current liabilities (£750) is offset by prepayments, which may reflect future income or advance payments—this is a key symptom to monitor closely.

The absence of employees and minimal fixed assets indicate a lean operating model, likely owner-operated with low overheads. However, the overall liquidity position is fragile if prepayments do not translate into cash inflows soon. This creates a symptom of potential cash flow vulnerability.

The company's status is active, with no overdue filings or signs of financial distress such as negative equity or excessive liabilities. This baseline is encouraging but reflects the early stage risks of a small business: limited resources, reliance on the founder, and the need to build revenue.

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4. Prognosis: Future Financial Outlook

Given current data, the financial outlook is cautiously optimistic but depends heavily on:

• The conversion of accrued income/prepayments into actual cash inflow.
• Ability to generate sustainable revenue streams in the competitive cybersecurity consultancy market.
• Maintaining tight control over liabilities and operating expenses, especially with zero employees.
• Potential to raise capital or generate profit to grow net assets beyond the current minimal base.

Without strong revenue growth or additional capital injection, the company may experience symptoms of cash flow stress, which could impair operational continuity. However, the low-cost structure and no immediate signs of debt or overdraft strain provide a window to stabilize.

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5. Recommendations

1. Cash Flow Monitoring:
   Regularly track the realization of prepayments and accrued income into cash to avoid liquidity crunches. Consider preparing detailed cash flow forecasts.

2. Revenue Growth Focus:
   Develop and execute a strategic plan to increase client acquisition and project delivery to build sustainable income.

3. Cost Management:
   Keep overheads minimal; maintain the lean operational model unless justified by revenue growth.

4. Capital Buffer:
   Consider additional shareholder investment or exploring short-term finance options to build a cash buffer.

5. Governance and Compliance:
   Ensure timely filings and maintain transparent records, especially as the company grows.

6. Risk Management:
   Monitor dependency on the single director and plan for continuity or succession to reduce operational risk.

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