Company Number: 13547567

Analysis Date: 2025-07-20 11:22 UTC

Financial Health Assessment: PES & TARSO LTD (Year ended 31 August 2024)

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1. Financial Health Score: B

Explanation:
PES & TARSO LTD shows a solid and improving financial position with strong liquidity and increasing equity. The company exhibits healthy working capital and a growing cash reserve, indicating good operational cash flows. However, the business is still relatively young and small-scale with minimal fixed assets and a single employee, suggesting limited operational breadth and some exposure to business risk.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Current Assets (Working Capital)	£53,063	Healthy buffer indicating the company can comfortably meet its short-term liabilities.
Cash at Bank	£126,123	Strong cash position providing liquidity and financial stability ("healthy cash flow").
Current Liabilities	£75,170	Manageable short-term obligations in relation to current assets.
Net Assets (Equity)	£53,431	Positive net worth, growing significantly from £17,547 in 2023, showing retained profitability.
Fixed Assets	£368	Very low fixed asset base, typical for service activities, but limits asset-backed security.
Share Capital	£100	Minimal share capital, reflecting small scale and private ownership structure.
Employee Count	1	Single employee—business highly dependent on key individual(s).
Profit & Loss Reserve	£53,331	Accumulated retained earnings indicate ongoing profitability despite small scale.

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3. Diagnosis: What the Financial Data Reveals

PES & TARSO LTD is in a good state of financial health, demonstrated by a strong liquidity position and positive net assets that have tripled since 2023. The substantial increase in cash and net current assets suggests the company has generated cash internally or through financing, enhancing its ability to cover short-term obligations and invest as needed.

The company's low fixed asset base reflects its classification in "Other human health activities" and "Specialists medical practice activities," where physical assets are less critical compared to intangible assets like expertise and client relationships.

The business shows no symptoms of financial distress such as negative net current assets, escalating liabilities, or deteriorating equity. The sole director and owner’s strong control ensures centralized decision-making but also means the business's health is closely tied to this individual’s capacity and management.

Given its small size and young age (incorporated in 2021), the company is likely in a growth or establishment phase with cautious financial management, as indicated by its sound cash reserves.

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4. Recommendations: Steps to Improve Financial Wellness

• Diversify Asset Base: Consider investing in technology or equipment that can improve service delivery or efficiency. This will slightly increase fixed assets and reduce reliance on cash alone.
• Expand Workforce Gradually: Hiring additional qualified staff could reduce operational risk tied to a single employee and support business growth.
• Strengthen Revenue Streams: Explore opportunities to expand client base or service offerings within the healthcare sector to increase turnover and profitability.
• Maintain Healthy Cash Flow: Continue prudent cash management practices to sustain the excellent liquidity position.
• Prepare for Scale: Develop financial forecasts and budgets to plan for scaling operations, ensuring that working capital remains sufficient to support growth.
• Governance and Risk Management: Although small, consider implementing basic governance policies and risk assessments to safeguard the business as it grows.
• Explore External Financing Options: Should expansion be pursued, the company could consider financing options to supplement cash reserves without compromising equity.

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