PRECISE TECH-GROUP LTD

Executive Summary

PRECISE TECH-GROUP LTD demonstrates a stable and improving financial condition with positive liquidity and growing equity, reflecting a healthy micro-business. The company’s lean operational model presents low financial risk but also limits growth potential. Strategic focus on operational expansion and maintaining strong cash flow will be key to sustaining and enhancing financial wellness.

PRECISE TECH-GROUP LTD - Analysis Report

Company Number: 12437791

Analysis Date: 2025-07-29 20:18 UTC

Financial Health Assessment: PRECISE TECH-GROUP LTD (as of 29 February 2024)

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1. Financial Health Score: B

Explanation:
PRECISE TECH-GROUP LTD shows a steady improvement in its financial footing with positive net current assets and net assets growth over the past four years. The company maintains a healthy liquidity position relative to its size (micro-entity), indicating good short-term financial stability. However, the absence of employees and relatively small scale of operations temper the score, suggesting room for growth and operational expansion before reaching an A-grade status.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£7,507	Increase indicates improved cash or receivables
Current Liabilities	£3,207	Slight decrease contributes to stronger liquidity
Net Current Assets	£4,300	Positive working capital ("healthy cash flow")
Net Assets (Shareholders' Funds)	£4,300	Growing equity base reflecting retained earnings or capital injection
Share Capital	£100	Minimal, typical for a micro private company
Employee Count	0	No employees, indicating limited operational activity or outsourcing

Interpretation:

• Liquidity (Net Current Assets): The company has a solid buffer of £4,300 in net current assets, meaning it can comfortably meet short-term obligations—akin to a patient with a strong pulse and stable vital signs.
• Equity Growth: The net assets have increased over fourfold since 2020, showing a positive trajectory in financial reserves, which is a good sign of healing and strengthening.
• Operational Scale: Lack of employees suggests a lean or possibly non-labour-intensive business model, which could affect growth potential but also limits fixed overhead risks.

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3. Diagnosis

PRECISE TECH-GROUP LTD presents the symptoms of a financially stable micro-entity with improving working capital and net asset value. The company’s balance sheet shows no signs of distress such as negative working capital or eroding equity, which can be likened to a patient with no signs of infection or inflammation. The steady increase in net assets suggests prudent financial management or possibly retained earnings. The company’s activity in data processing and other service activities (SIC 63110, 96090) aligns with relatively low fixed asset intensity, consistent with the financial figures reported.

However, the absence of employees indicates a very lean operation, possibly reliant on subcontractors or automated systems. This could limit scalability but also reduces fixed costs and financial risk. The small size and micro-entity status mean financial buffers are modest, so while the company is currently healthy, it remains vulnerable to external shocks or downturns.

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4. Recommendations

• Maintain Strong Liquidity: Continue to monitor current assets and liabilities closely to preserve the positive working capital "heartbeat." Avoid overextending credit terms or accumulating short-term debt.
• Consider Operational Expansion: If growth is a goal, evaluating the potential to hire key staff or invest in scalable resources could improve operational capacity and revenue generation—like strengthening muscles to improve overall health.
• Build a Financial Cushion: While net assets are improving, consider setting aside reserves or reinvesting profits to create a buffer against unexpected expenses or market fluctuations.
• Review Revenue Streams: Given the industry classification, ensure that the company is leveraging technology and data processing efficiently to maximize margins and reduce costs.
• Compliance and Reporting: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing, which is akin to regular health check-ups.
• Explore Funding Options: If expansion is planned, investigate options like small business loans or grants targeted at tech companies, ensuring any financing maintains a healthy debt-to-equity balance.

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