PRISM NETWORX LTD

Executive Summary

PRISM NETWORX LTD exhibits a strong and improving financial position with growing net assets and solid working capital, indicating healthy liquidity and solvency. Although fixed asset investment is limited, the company’s financial footing is stable, positioning it well for future growth if strategic investments and careful liability management continue. Regular financial monitoring and targeted asset enhancements will support sustained financial wellness.

PRISM NETWORX LTD - Analysis Report

Company Number: 13969916

Analysis Date: 2025-07-29 16:17 UTC

Financial Health Assessment: PRISM NETWORX LTD (As of 31 March 2025)

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1. Financial Health Score: B

Explanation:
PRISM NETWORX LTD demonstrates a solid and improving financial position typical of a growing micro-entity. The company has shown significant improvement in net assets and working capital over recent years, reflecting strengthening liquidity and capital structure. The “B” grade reflects healthy financial stability with room for enhanced asset management and continued growth to ensure sustained financial wellness.

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2. Key Vital Signs

Metric	2025 Value	Interpretation
Fixed Assets	£6,855	Small asset base, typical for a telecom micro-entity; slight decrease from prior year may indicate asset disposal or depreciation.
Current Assets	£105,878	Strong increase from previous year, indicating improved cash, receivables, or short-term resources—sign of healthy liquidity (“healthy cash flow”).
Current Liabilities	£37,088	Decreased from previous year but still significant; management should monitor to avoid liquidity strains.
Net Current Assets (Working Capital)	£68,790	Positive and growing working capital signals good short-term financial health, enabling the company to meet obligations on time.
Net Assets (Shareholders’ Funds)	£64,245	Substantial growth from £14,025 in prior year, reflecting retained earnings or capital injections—shows strengthening financial foundation.
Long-term Liabilities (Creditors due after 1 year)	£11,500	Reduced significantly from £47,500 prior year, indicating repayments or refinancing, reducing long-term financial burden.

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3. Diagnosis: What the Financial Data Reveals

Vital Signs Analysis:
The company is showing "healthy cash flow" with robust growth in current assets and net current assets, indicating an ability to cover short-term debts comfortably. The significant rise in net assets is a positive "symptom" of retained profits or capital increases, improving the company's equity base.

Symptoms of Strength:

• Increased liquidity and working capital suggest effective management of operational cash flows and receivables.
• Reduction in long-term creditors lessens financial strain and interest burden, improving solvency.

Symptoms of Concern:

• The fixed asset base is small and slightly declining, which could reflect aging equipment or limited investment in infrastructure—potentially a limiting factor for future growth.
• Current liabilities remain sizeable; careful monitoring is needed to avoid "stress" on short-term obligations.

Overall Diagnosis:
PRISM NETWORX LTD is in good financial health for a micro company in the telecommunications sector. The balance sheet shows resilience and improving solidity, with no immediate signs of distress. However, the company should continue to build its asset base and cautiously manage liabilities to maintain this positive trajectory.

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4. Recommendations: Steps to Improve Financial Wellness

• Invest in Fixed Assets: Consider strategic investments in technology or equipment to support growth and competitive positioning, ensuring long-term sustainability.
• Enhance Cash Flow Management: Maintain or improve current asset quality by accelerating receivables collection and managing payables efficiently to sustain strong working capital.
• Monitor Liabilities: Continue reducing long-term debts and manage current liabilities prudently to avoid liquidity bottlenecks.
• Profit Retention and Capital Injection: Maintain profitability and consider reinvesting profits to bolster net assets further and fund growth initiatives.
• Regular Financial Reviews: Conduct periodic financial health checks to detect early "symptoms" of distress and implement corrective measures proactively.
• Explore Growth Opportunities: Given the improving financial base, evaluate market expansion or service diversification to leverage the telecommunications sector potential.

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