PREMIUM SOUND SOLUTIONS LTD

Executive Summary

Premium Sound Solutions Ltd is a micro-entity with a modest but positive net asset base and no current liabilities, demonstrating basic financial stability. However, a decline in cash and current assets signals tighter liquidity, recommending cautious credit exposure with close cash flow monitoring. The company’s small scale and single director control require ongoing oversight to ensure continued creditworthiness.

PREMIUM SOUND SOLUTIONS LTD - Analysis Report

Company Number: SC731797

Analysis Date: 2025-07-20 16:10 UTC

1. Credit Opinion: APPROVE with caution.
   Premium Sound Solutions Ltd is a very small micro-entity, incorporated recently in 2022, with a simple balance sheet and no current liabilities in the latest period. The company shows positive net assets and working capital. However, the downward trend in current assets and net assets from 2023 to 2024, as well as the absence of liabilities in the latest year (potentially due to timing or accounting treatment), suggest limited operational scale and modest financial buffer. The single director and 100% owner appears to have good control, but the company’s micro scale and limited financial history warrant cautious exposure. Credit lines should be modest and monitored closely.

2. Financial Strength:
   The company’s net assets stand at £19,331 as of May 2024, down from £22,575 the previous year. Current assets decreased from £31,269 in 2023 to £12,504 in 2024, partly offset by prepayments/ accrued income of £6,827 in 2024 (not present in 2023). No current liabilities are recorded in 2024, improving net current assets to £19,331 from £22,575 in 2023. The balance sheet remains positive but shows a decline in liquidity and asset base, which may reflect lower cash or receivables. There are no fixed assets listed. Shareholders’ funds fully match net assets, indicating no external debt.

3. Cash Flow Assessment:
   Cash position declined sharply from £31,269 in 2023 to an unreported cash figure in 2024 (likely included in current assets of £12,504). The company had current liabilities of £8,694 in 2023 but none in 2024, suggesting either settlement or reclassification. Net current assets remain positive, but the reduced cash and current asset level imply tighter liquidity. The company employs only one person (the director), indicating low overheads but also limited operational scale. Working capital is positive but shrinking, so close attention is needed on receivables collection and cash inflows to ensure ongoing liquidity.

4. Monitoring Points:

• Track quarterly cash flow and current asset trends to ensure liquidity remains positive.
• Monitor any increase in liabilities or credit exposure as the company grows.
• Watch for changes in prepayments and accruals, given their impact on working capital.
• Review director’s financial management and operational performance as the sole key person.
• Confirm timely filing of accounts and confirmation statements is maintained.