SANTORAS SOLUTIONS LTD

Executive Summary

SANTORAS SOLUTIONS LTD exhibits a sound and improving financial condition with positive net assets and retained earnings growth, indicating profitability and solvency. However, a notable reduction in cash reserves highlights the need for enhanced cash flow management to ensure ongoing liquidity. With strategic operational expansion and financial planning, the company is well-positioned for sustainable growth.

SANTORAS SOLUTIONS LTD - Analysis Report

Company Number: 14154419

Analysis Date: 2025-07-19 12:45 UTC

Financial Health Assessment Report for SANTORAS SOLUTIONS LTD

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1. Financial Health Score: B

Explanation:
SANTORAS SOLUTIONS LTD demonstrates a generally stable financial position with positive net current assets and net assets that have grown year on year. The company shows signs of healthy liquidity and a modest equity base for its size and age. However, the company is still in its early growth phase (incorporated 2022) with relatively low absolute asset and equity values, and its cash position has decreased, indicating areas for cautious observation.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Cash at Bank	50,886	105,947	Cash decreased by ~52% - potential strain on liquidity
Current Liabilities	40,919	100,240	Reduced liabilities significantly, easing short-term pressures
Net Current Assets	9,967	5,707	Positive and improving working capital (buffer for short-term)
Net Assets (Equity)	9,967	5,707	Equity has almost doubled, indicating retained profits
Share Capital	100	100	Minimal share capital, typical for small private company
Profit & Loss Reserve	9,867	5,607	Accumulated retained earnings showing profitability
Average Employees	0	0	No employees recorded, suggesting reliance on contractors or directors

Interpretation:

• Liquidity ("healthy cash flow"): Cash on hand remains positive but has dropped notably, signaling the need to monitor cash flow carefully.
• Solvency and Working Capital: Positive net current assets mean the company can cover its short-term obligations. The doubling of net assets signals growing business value.
• Profitability: Retained earnings are increasing, indicating the company is generating profit and retaining it rather than distributing it.
• Operational Scale: No employees reported, which could affect growth potential and operational capacity.

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3. Diagnosis

The company is in a stable but emerging state of financial health. It is effectively managing its liabilities and growing its equity base, which is a positive "heartbeat" for a young business. The significant reduction in cash reserves is a "symptom" that requires attention, although the concurrent reduction in current liabilities suggests some balancing actions were taken, possibly paying down debts or investing in operations.

The absence of employees could imply a lean operational structure, possibly relying on directors or outsourced services, which can be efficient but may limit scalability. The company is also compliant with filing deadlines and maintains a good governance structure with clear director appointments.

The company's SIC code (46190) indicates it acts as an agent involved in the sale of various goods — a business model that can have variable cash flow cycles depending on client payment terms and inventory management (though no stock data is reported).

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4. Recommendations

• Enhance Cash Flow Management:
  Investigate the causes of cash reduction over the year. Consider developing a cash flow forecast to anticipate and manage liquidity needs proactively. Explore options to accelerate receivables or negotiate better payment terms with suppliers.

• Build Operational Capacity:
  Consider hiring key staff or formalizing contractor arrangements to support business growth and reduce dependency on directors alone.

• Financial Controls and Planning:
  Maintain regular financial reviews and budgeting to ensure continued profitability and identify any emerging financial distress early.

• Growth Strategy:
  With growing retained earnings and equity, explore opportunities for strategic investments or marketing to expand sales and diversify revenue streams.

• Monitor Working Capital:
  Keep a close eye on current liabilities and assets to prevent short-term liquidity issues, especially given the small buffer.

• Engage Professional Advice:
  As the business grows, consulting with financial or tax advisors could optimize tax efficiency and compliance.

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