PTT SOLUTIONS LIMITED

Executive Summary

PTT Solutions Limited is financially healthy with strong liquidity and growing equity, reflecting sound management in its early years. The company has built a solid foundation but should focus on strategic investments and cash flow management to support sustainable growth in the competitive telecom retail sector.

PTT SOLUTIONS LIMITED - Analysis Report

Company Number: 14615541

Analysis Date: 2025-07-29 18:50 UTC

Financial Health Assessment for PTT Solutions Limited

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1. Financial Health Score: B

Explanation:
PTT Solutions Limited demonstrates sound financial stability for a newly incorporated micro-entity. The company shows a positive trend in net current assets and shareholders' funds over the last two years, reflecting improving liquidity and capitalization. However, the business remains small with modest fixed assets and limited financial history, which tempers the overall score to a solid B rather than an A. The company is financially "fit" but still in early growth stages, requiring attention to sustaining healthy cash flows and asset growth.

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2. Key Vital Signs

Metric	Latest (2025)	Previous (2024)	Interpretation
Fixed Assets	£1,538	£0	Small investment in long-term assets, indicating cautious capital expenditure.
Current Assets	£26,737	£26,453	Stable liquid resources, showing healthy cash availability.
Current Liabilities	£15,173	£21,559	Decreased short-term debts, reducing immediate financial pressure.
Net Current Assets (Working Capital)	£11,564	£4,894	Significant improvement, suggesting stronger short-term financial health.
Total Assets Less Current Liabilities (Net Assets)	£13,102	£4,894	Growing net asset base reflects increasing company value and solvency.
Shareholders’ Funds	£13,102	£4,894	Equity base expanding, indicating retained earnings or capital injection.
Employees	2	2	Small workforce consistent with micro-entity status.

Interpretation:

• The company’s "cardiovascular system" — its liquidity and solvency — is showing clear signs of strength.
• The "cash flow pulse" is steady with current assets comfortably exceeding current liabilities, indicating the company can meet short-term obligations without distress.
• The modest but positive fixed assets investment signals cautious growth and asset management.

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3. Diagnosis

PTT Solutions Limited exhibits the characteristics of a financially healthy micro-business in its infancy stage:

• Liquidity & Working Capital: The company has a strong positive working capital position (£11,564), which is a key "vital sign" for operational health. This eliminates symptoms of cash flow strain or immediate liquidity risk.
• Capital Structure: Shareholders’ funds have nearly tripled from £4,894 to £13,102 in one year, suggesting retained profits or capital contributions are building a solid financial foundation. This "immune system" of equity protects against external shocks.
• Operational Scale: With only 2 employees and modest assets, the business is lean but stable. This small scale is appropriate for the company's micro-entity classification and early development phase.
• Industry Context: Operating in retail sale of telecom equipment (other than mobile phones), the company taps a niche market with potential for steady demand, though competitive pressures and technology changes should be monitored.

No "symptoms of distress" such as overdue filings, director disqualifications, or negative net assets are present. The financial statements are unaudited but comply with micro-entity reporting standards, suitable for the company's size and complexity.

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4. Recommendations

To maintain and enhance financial wellness, PTT Solutions Limited should consider the following:

• Strengthen Cash Flow Management: Monitor cash inflows and outflows carefully to sustain the positive working capital trend and avoid liquidity tightness as the business scales.
• Invest Strategically in Fixed Assets: While cautious investment is prudent, consider targeted asset purchases that can improve operational efficiency or market competitiveness.
• Build Profit Reserves: Aim to increase retained earnings to create a buffer against market volatility and support future growth initiatives.
• Monitor Industry Trends: Keep abreast of technological advancements in telecommunications equipment and adapt product offerings accordingly to avoid obsolescence.
• Compliance and Governance: Continue timely filing of accounts and confirmation statements to maintain good standing and avoid penalties.
• Growth Planning: Explore opportunities for expanding customer base or product lines while maintaining lean operations to improve profitability.

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