SAKRI TECH LIMITED

Executive Summary

SAKRI TECH LIMITED maintains a stable financial position with strong working capital and low liabilities, typical for a micro IT consultancy. However, the recent decline in net assets and current assets signals caution and the need for focused cash flow and profitability management to sustain financial wellness. Addressing these early symptoms will support a healthier financial future.

SAKRI TECH LIMITED - Analysis Report

Company Number: 13049325

Analysis Date: 2025-07-29 20:32 UTC

Financial Health Assessment for SAKRI TECH LIMITED

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1. Financial Health Score: B-

Explanation:
SAKRI TECH LIMITED shows solid net asset backing and positive working capital, indicating a generally stable financial position typical for a micro-entity in IT consultancy. However, the recent decline in net assets and current assets from 2022 to 2023 signals emerging cautionary signs that require attention to avoid financial strain.

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2. Key Vital Signs:

Metric	2023 Value (£)	Interpretation
Fixed Assets	1,067	Low investment in long-term assets, typical for IT consultancy relying on human capital.
Current Assets	33,166	Adequate short-term resources, but sharply down from £75,550 in 2022, potentially indicating cash outflows or asset reduction.
Current Liabilities	1,795 (negative)	Low short-term obligations, a positive sign indicating manageable payables.
Net Current Assets	34,961	Strong working capital, indicating a healthy buffer to cover short-term debts.
Total Assets Less Current Liabilities	36,028	Shows overall asset strength after covering immediate liabilities.
Creditors Due After One Year	1,496 (liability)	Small long-term liabilities, manageable given asset base.
Net Assets (Shareholders' Funds)	34,124	Positive equity, though down from £56,166 in 2022, indicating accumulated losses or distributions.
Average Number of Employees	1	Lean operation, consistent with micro entity status.

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3. Diagnosis:

Vital Signs Summary:
The company maintains a "healthy cash flow" profile reflected by positive net current assets and low short-term liabilities, which are critical for day-to-day operational liquidity. The fixed asset base is minimal, which is common in a consultancy business focused on intellectual capital rather than physical assets.

Symptoms Analysis:

• The significant drop in current assets (from £75,550 to £33,166) and net assets (from £56,166 to £34,124) over the last year are "symptoms of distress," possibly due to reduced cash inflows, increased expenses, or asset write-downs.
• Minimal long-term liabilities and low current liabilities are positive, indicating limited financial leverage or debt pressure.
• The company remains in a strong equity position, but the erosion of reserves may reflect operational challenges or profit retention issues.
• The micro-entity filing status and lack of an audit suggest limited complexity but also limited transparency for stakeholders.

Overall Financial Condition:
SAKRI TECH LIMITED appears financially stable but with early signs of weakening capital reserves that warrant monitoring. Its strong working capital position is a positive "heartbeat" indicating ability to meet short-term obligations, but the trend of declining net assets is a "warning sign" to address profitability or cash generation issues.

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4. Recommendations:

• Cash Flow Management:
  Investigate the cause of the sharp reduction in current assets. Implement tighter cash flow forecasting and control to ensure liquidity remains "healthy."

• Profitability Review:
  Conduct a detailed review of the income and expense structure to identify areas for cost savings or revenue enhancement, as the decline in net assets may reflect operational inefficiencies or reduced income.

• Capital Structure:
  Avoid accumulating further liabilities unless they support growth. Consider modest capital injections if necessary to strengthen equity and support expansion.

• Financial Reporting:
  Even as a micro-entity, consider preparing more detailed internal management accounts to enhance financial visibility and early detection of issues.

• Strategic Focus:
  Given the IT consultancy nature, invest in skills and technology that can improve service offerings and client acquisition to reverse declining asset trends.

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