GOLDIAN TECH SOLUTION LIMITED

Executive Summary

Goldian Tech Solution Limited has shown encouraging signs of financial recovery with positive working capital and net assets after an initial deficit. However, it carries significant long-term liabilities relative to its equity, indicating cautious management of debt and capital is critical. Strengthening equity and prudent liquidity management will be key to sustaining and improving its financial health.

GOLDIAN TECH SOLUTION LIMITED - Analysis Report

Company Number: 13113002

Analysis Date: 2025-07-20 14:30 UTC

Financial Health Assessment for GOLDIAN TECH SOLUTION LIMITED

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1. Financial Health Score: C

Explanation:
This company exhibits early signs of recovery from initial financial distress. While current figures show positive net current assets and net equity, the relatively low net assets and reliance on long-term liabilities suggest a cautious but improving financial condition. The score C reflects a company that is functioning with some financial stability but remains vulnerable and in need of strengthening its capital base and liquidity.

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2. Key Vital Signs

Metric	Latest Value (2024)	Previous Year (2023)	Interpretation
Current Assets	£30,799	£0	Healthy increase in short-term resources
Current Liabilities	£27,079	£141	Increase in short-term obligations
Net Current Assets (Working Capital)	£3,720 (Calculated: £30,799 - £27,079)	Negative £141	Positive working capital signals liquidity improvement
Net Assets (Equity)	£2,224	Negative £1,149	Transition from negative to positive equity
Long-term Liabilities	£27,079	£0	Significant long-term debt; watch for servicing ability
Share Capital	£100	£100	Minimal paid-up capital
Number of Employees	1	1	Very small scale operation

What these vital signs indicate:

• The company has moved from a net deficit position in 2023 to a positive net asset position in 2024, indicating some financial recovery or capital injection.
• Positive net current assets (working capital) suggest the company can meet short-term obligations, a sign of improving liquidity—akin to a patient recovering healthy blood circulation after a period of anemia.
• However, a large amount of long-term liabilities relative to equity and assets is a symptom of financial strain, requiring close monitoring of debt servicing capacity.
• The company's micro size and single employee limit operational scale and flexibility.

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3. Diagnosis

Underlying Health Status:
GOLDIAN TECH SOLUTION LIMITED shows symptoms of a small but recovering business. The positive net current assets indicate that it currently has a "healthy cash flow" environment to cover immediate liabilities, which is critical for survival and operational continuity. The turnaround from negative net assets to positive equity is encouraging, much like a patient showing signs of convalescence after illness.

However, the substantial long-term liabilities compared to its modest equity base are concerning. This could be compared to a patient with a persistent chronic condition requiring ongoing treatment—the company must carefully manage its debt obligations to avoid relapse into insolvency.

The small scale of operation (one employee, micro company) means the business is likely very lean and possibly dependent on owner/manager effort, which can be both a strength and a vulnerability.

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4. Recommendations

To strengthen financial wellness and sustain recovery, consider these steps:

1. Improve Equity Base:

   • Consider additional capital injections or retaining earnings to build a stronger equity buffer against liabilities.
   • This is like building stronger bones to support the body’s structure.

2. Manage Debt Prudently:

   • Evaluate the terms of long-term liabilities and explore refinancing or renegotiation to reduce interest or extend maturities.
   • Avoid over-reliance on debt that may strain cash flows.

3. Enhance Liquidity Monitoring:

   • Maintain or improve working capital levels by managing receivables, payables, and inventory carefully.
   • Regular cash flow forecasting is akin to monitoring vital signs to anticipate and prevent crises.

4. Operational Growth and Diversification:

   • Explore opportunities to increase revenues and diversify income streams, reducing dependence on a narrow business base.
   • Scaling carefully can improve resilience, like strengthening a muscle through exercise.

5. Compliance and Reporting:

   • Continue timely filing of accounts and confirmation statements to avoid penalties and maintain credibility.
   • Transparent reporting supports stakeholder confidence.

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