PINNACLE TECH LIMITED

Executive Summary

Pinnacle Tech Limited exhibits a stable and healthy financial condition typical of a start-up micro-entity with strong liquidity and positive net assets. While early-stage and small-scale, the company is well-positioned to grow if it maintains prudent cash flow management and develops profitability monitoring. Continued careful oversight and financial planning will ensure a robust financial future.

PINNACLE TECH LIMITED - Analysis Report

Company Number: 14738730

Analysis Date: 2025-07-29 13:05 UTC

Financial Health Assessment: Pinnacle Tech Limited

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1. Financial Health Score: B

Explanation:
Pinnacle Tech Limited demonstrates a solid financial footing for its first year of operation. The company shows healthy liquidity and a positive net asset position, indicating a stable financial "heartbeat." However, as a newly incorporated micro-entity with limited operational history and minimal financial complexity, the score reflects a stable but early-stage condition that requires monitoring as the business scales.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	54,557	Adequate short-term resources, mainly cash or equivalents that keep the company solvent.
Current Liabilities	10,584	Manageable short-term obligations.
Net Current Assets	43,974	Positive working capital indicates a "healthy cash flow," able to cover immediate debts comfortably.
Net Assets (Shareholders’ Funds)	43,974	Reflects company’s net worth; positive net assets suggest financial stability.
Average Employees	1	Very small operational scale consistent with micro-entity status.

Additional Notes:

• No audit required or performed as per micro-entity exemption—common and appropriate for the company size.
• Sole director and primary controller, providing centralized decision-making but also reliance on one individual.
• Operating in the IT consultancy sector (SIC 62020), which typically requires low fixed assets but strong intellectual capital.

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3. Diagnosis

Pinnacle Tech Limited’s financial "vitals" suggest it is in a stable condition typical of a start-up micro-entity. The company has a strong liquidity position with net current assets nearly four times its current liabilities, indicating no immediate symptoms of financial distress such as cash crunch or over-leverage.

The positive net asset value and shareholders’ funds tell us the equity base is intact and the company is not burdened by debt. Since the company has only one employee (the director) and minimal liabilities, the operational complexity is low, which reduces overhead risks.

However, the absence of revenue or profit figures in the data means we cannot fully assess profitability or cash flow generation trends. As a start-up, it is normal that the primary focus is on establishing the business rather than generating profits immediately. The company’s financial condition is thus akin to a patient in early recovery: stable but requiring ongoing monitoring and care as it grows.

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4. Recommendations

To maintain and improve financial wellness, Pinnacle Tech Limited should consider the following steps:

• Cash Flow Management: Continue to monitor liquidity closely to ensure the "healthy cash flow" is maintained, especially as business activities increase.
• Revenue Tracking and Profitability: Begin detailed tracking of income and expenses to identify profitability trends as early as possible.
• Build Reserves: Aim to build retained earnings or reserves to cushion against unforeseen expenses or downturns.
• Scalability Planning: Prepare for growth by formalizing financial controls and considering additional staff or outsourced support as projects expand.
• Compliance and Reporting: Stay vigilant with timely filing of accounts and confirmation statements to avoid penalties or regulatory issues.
• Risk Management: Explore basic risk assessments such as client credit checks and contract reviews to reduce exposure to bad debts or disputes.

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