SARAH SEMAKULA PRIVATE SERVICES LTD

Executive Summary

SARAH SEMAKULA PRIVATE SERVICES LTD is a micro-entity with a small but positive net asset base and manageable liabilities. Financial metrics show a weakening trend in liquidity and net worth, warranting cautious credit exposure with conditions. The company’s very small scale and single-director ownership suggest limited resilience to financial stress, making ongoing monitoring essential.

SARAH SEMAKULA PRIVATE SERVICES LTD - Analysis Report

Company Number: 14265611

Analysis Date: 2025-07-29 12:08 UTC

1. Credit Opinion: CONDITIONAL APPROVAL SARAH SEMAKULA PRIVATE SERVICES LTD is a very small, micro-entity operating in the "Other human health activities" sector with minimal fixed assets and low turnover implied by asset size. The company shows positive net current assets and net assets, indicating a basic buffer against short-term liabilities. However, the decline in current assets from £11,813 in 2023 to £5,571 in 2024 and a reduction in net assets from £5,662 to £3,089 signals some weakening financial position. The business is young (incorporated 2022) and has only one employee (the director), so its capacity to absorb shocks or generate cash is limited. Given these factors, credit approval can be considered but with limits on exposure and conditions such as regular financial monitoring and possibly short-term facilities only.

2. Financial Strength: The balance sheet is simple and shows no fixed assets, which is typical for a micro-entity service business. The company maintains positive working capital (£3,089) but this has nearly halved year-on-year, reflecting reduced liquidity. Shareholders’ funds have also decreased, indicating either withdrawals or losses, although no explicit loss figures are reported. The absence of provisions or long-term liabilities suggests a straightforward financial structure with low leverage. Overall, financial strength is modest and vulnerable to adverse events due to limited equity and asset base.

3. Cash Flow Assessment: The current asset decrease primarily impacts cash or receivables, reducing liquidity cushion. Current liabilities have decreased from £6,151 to £2,482, which somewhat offsets the asset decline but still leaves a smaller net current asset position. The single-employee structure keeps payroll costs low, but cash inflows from operations are unclear. The micro-entity status and small scale mean working capital management is critical. The company appears able to meet short-term obligations currently but has limited buffer for unexpected expenses or downturns.

4. Monitoring Points:

• Net current assets trend: Continued decline could indicate cash flow problems.
• Timely submission of accounts and confirmation statements (currently up to date).
• Changes in director or ownership structure (currently fully controlled by Sarah Semakula).
• Any increase in liabilities or overdue payables.
• Revenue and profit trends once more detailed P&L data become available.
• Operational capacity and employee headcount changes impacting cost structure.