SRB INSTALLATION PROJECTS LIMITED

Executive Summary

SRB INSTALLATION PROJECTS LIMITED currently operates with a very lean financial structure characterized by minimal net assets and working capital, typical for a micro-entity in early development. While not in immediate distress, the company’s tight liquidity and low equity base suggest vulnerability to financial shocks. Strengthening liquidity, capital, and reporting transparency will improve the company's financial resilience and support future growth.

SRB INSTALLATION PROJECTS LIMITED - Analysis Report

Company Number: 12863688

Analysis Date: 2025-07-20 18:54 UTC

Financial Health Assessment for SRB INSTALLATION PROJECTS LIMITED

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1. Financial Health Score: C

Explanation:
The company shows very modest net assets and working capital, indicating a fragile financial position typical of a micro-entity in early growth stages. While it is not in distress, the minimal buffer between current assets and liabilities signals limited capacity to absorb shocks or invest in expansion without external support.

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2. Key Vital Signs

Metric	2024 Figure (£)	Interpretation
Current Assets	67,490	Healthy short-term assets mainly cash or receivables; increased from prior year
Current Liabilities	65,027	Short-term obligations almost equal to current assets, indicating tight liquidity
Net Current Assets (Working Capital)	2,463	Positive but very small buffer — signs of limited liquidity flexibility
Net Assets (Shareholders’ Funds)	713	Very low equity base, minimal retained earnings or capital; vulnerable to losses
Average Number of Employees	1	Small scale operation consistent with micro-entity status
Account Category	Micro	Limited filing requirements; small scale business
Profit & Loss Account	Not filed	Limited disclosure restricts insight into profitability and cash flow dynamics

Interpretation:
The net current assets (working capital) and net assets are positive but barely so, akin to a patient with a low-grade fever—not critically ill but requiring attention to avoid deterioration. The increase in current assets year-on-year is a positive sign, but the proportional rise in liabilities tempers optimism.

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3. Diagnosis

SRB INSTALLATION PROJECTS LIMITED is a micro private limited company engaged in specialised design activities, showing signs of cautious financial health. The company's balance sheet reflects a very lean operation with minimal net assets and working capital, typical of a start-up or small scale business in early stages.

• Liquidity: The company has just enough current assets to cover its current liabilities, implying a tight cash flow situation. This situation is comparable to a patient with stable but weak pulse—no immediate emergency, but with limited reserves.

• Capital Structure: The negligible shareholders’ funds suggest the business has limited retained earnings or capital injection. This could restrict the company's ability to invest or absorb unexpected costs.

• Profitability & Cash Flow: The absence of a profit and loss account filing limits assessment of earnings quality and cash flow health (the "heartbeat" of business). Without clear profit data, it is difficult to gauge operational sustainability.

• Growth & Sustainability: The slight increase in current assets and liabilities indicates some business activity growth but also growing obligations. This balance requires careful management to avoid financial strain.

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4. Recommendations

1. Improve Liquidity Management:

   • Aim to increase net current assets by either boosting receivables collection, managing payables terms, or increasing cash reserves.
   • Monitor cash flow closely to ensure "healthy circulation" and avoid cash shortages that can lead to financial distress.

2. Enhance Capital Base:

   • Consider capital injections from shareholders or reinvest profits to strengthen the equity base and provide a buffer against losses.
   • A stronger capital base improves creditworthiness and resilience.

3. Financial Reporting Transparency:

   • Although exempt, filing a profit and loss account voluntarily can provide stakeholders with better insight into operational performance and profitability.
   • Transparent reporting acts like regular health check-ups, enabling early detection of business ailments.

4. Cost Control and Revenue Growth:

   • Focus on increasing revenues from specialised design activities while controlling overheads.
   • Growing the business prudently will build stronger net assets and working capital.

5. Strategic Planning:

   • Develop financial forecasts and stress-test scenarios, preparing for market fluctuations.
   • This foresight is akin to preventive medicine, helping avoid financial crises.

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