FDK SOLUTIONS LIMITED

Executive Summary

FDK SOLUTIONS LIMITED demonstrates a stable and improving financial position with strong working capital and increasing net assets, indicative of good financial health for a micro-entity. The company maintains healthy liquidity and a solid equity base but should consider growth and diversification strategies to enhance long-term resilience. Regular financial monitoring and governance improvements will support continued wellness and business sustainability.

FDK SOLUTIONS LIMITED - Analysis Report

Company Number: 12504265

Analysis Date: 2025-07-19 12:23 UTC

Financial Health Assessment of FDK SOLUTIONS LIMITED

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1. Financial Health Score: B

Explanation:
FDK SOLUTIONS LIMITED shows a stable and improving financial position over the last few years. The company has consistently increased its net assets and net current assets, indicating healthy growth in working capital and overall financial strength. The score reflects solid financial footing with room for further improvement, especially in diversifying assets and maintaining liquidity.

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2. Key Vital Signs

Metric	Latest (2024)	Interpretation
Fixed Assets	£26,800	Stable investment in long-term assets, implying capital stability.
Current Assets	£23,593	Significant increase indicates improved liquidity and operational cash flow.
Current Liabilities	£12,593	Manageable short-term obligations.
Net Current Assets (Working Capital)	£11,000	Positive and growing working capital, showing good short-term financial health.
Net Assets / Shareholders' Funds	£37,800	Increasing equity base signals strengthening company value and retained profits.
Share Capital	£1.00	Minimal share capital, typical for micro-entities, with most funding from retained earnings.
Employee Count	1	Very small operational scale, consistent with micro-entity status.

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3. Diagnosis

FDK SOLUTIONS LIMITED exhibits symptoms of a financially healthy micro-business. The company has shown consistent growth in net assets from £982 (2020) to £37,800 (2024), a strong indication of profitability and retained earnings accumulation over time. The healthy cash flow is suggested by the significant rise in current assets, particularly cash or equivalents, which more than doubled from £4,857 in 2023 to £23,593 in 2024. This improvement reduces liquidity risk and provides a buffer against short-term financial distress.

The working capital remains positive and increasing, which is a critical sign of the company’s ability to cover its short-term debts with current assets — a key "vital sign" akin to a stable heartbeat in financial health terms. The fixed asset base remains stable, indicating no recent major capital expenditure or asset disposals, which can be seen as a steady "bone structure" of the company.

Given the single director and employee structure, the company appears to be tightly controlled and well-managed, with no sign of overextension or financial strain. However, the relatively small scale and minimal share capital suggest the company might face limitations in scaling without external funding or reinvestment.

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4. Recommendations

1. Maintain and Monitor Liquidity:
   Continue to build on current asset reserves to ensure the company can comfortably meet short-term liabilities. Regular cash flow forecasting is advisable to detect any early signs of liquidity stress.

2. Plan for Growth:
   Consider strategic reinvestment of profits to expand fixed assets or operational capacity if growth is desired. This could include investing in equipment, technology, or hiring, which would strengthen the company’s long-term “structural health.”

3. Diversify Funding Sources:
   Explore options for increasing share capital or obtaining external financing to support growth ambitions. This will provide a stronger equity base and improve financial resilience.

4. Maintain Strong Governance:
   Given the single director and employee, ensure compliance with all regulatory requirements and consider succession planning or additional governance support to avoid operational risks related to key person dependency.

5. Regular Financial Check-Ups:
   Continue filing timely accounts and confirmation statements. Regular financial reviews akin to medical check-ups can help catch early symptoms of distress and ensure ongoing financial wellness.

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