Company Number: 13736784

Analysis Date: 2025-07-29 15:07 UTC

Financial Health Assessment for SARYAN CARE LIMITED as of 30 November 2023

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1. Financial Health Score: B+

Explanation:
Saryan Care Ltd demonstrates a solid improvement in financial health over the past two years, marked by a strong increase in turnover, profitability, and net assets. The company has healthy liquidity and working capital, but the relatively high borrowings and intangible asset concentration suggest room for cautious monitoring. Overall, the business shows signs of recovery and growth with good operational profitability but carries moderate financial leverage risks.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Turnover	718,774	Significant growth (+194% vs 2022), indicating expanding operations and market traction.
Gross Profit	401,657	Healthy margin (~56%), showing efficient cost control on sales.
Operating Profit	148,024	Positive and growing, reflecting a profitable core business.
Profit Before Tax	130,189	Strong profit generation, improved from £42,185 in 2022.
Net Current Assets (Working Capital)	103,252	Positive working capital, indicating good short-term liquidity and ability to cover current liabilities.
Cash Balance	145,000	Robust cash reserves supporting operational needs and flexibility.
Current Liabilities	52,666	Well covered by current assets; manageable short-term obligations.
Non-Current Liabilities (Borrowings)	226,748	Moderate to high long-term debt; requires monitoring for debt servicing ability.
Net Assets (Equity)	96,592	Improved significantly from £1,770 in 2022, indicating strengthening shareholder value.
Amortisation Expense	27,500	Reflects write-off of intangible assets (goodwill), impacting reported profits.

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3. Diagnosis: Financial Health and Underlying Business Analysis

Symptoms Analysis:

• Revenue Growth & Profitability:
  The company’s turnover more than doubled from £244k (2022) to £719k (2023), signaling healthy business expansion. Operating profit and net profit also increased significantly, indicating effective cost management and scalability.

• Liquidity & Working Capital:
  The company moved from a working capital deficit in 2022 to a healthy surplus of £103k in 2023. Cash reserves improved dramatically to £145k, suggesting a "healthy cash flow pulse" and good short-term financial stability.

• Leverage & Debt Position:
  The company carries a notable amount of long-term debt (£227k), slightly reduced from the prior year. While this level of borrowings is important to fund operations or investments, it presents a "symptom of financial leverage" that requires careful servicing to avoid distress.

• Asset Composition:
  The company’s fixed assets are primarily intangible (goodwill), valued at £220k after amortisation. This concentration in intangible assets suggests reliance on acquired goodwill or brand value, which can be less liquid and more susceptible to impairment risks.

• Equity & Retained Earnings:
  Shareholder funds have grown from a minimal £1,770 to £96,592, showing a strong recovery and retention of earnings. The retained earnings increase reflects profitable years and limited dividend payouts recently.

• Director’s Remuneration & Staffing:
  Modest director remuneration (£8,832) and steady staff count (5 employees) imply controlled overheads and focused management.

Overall Health:
Saryan Care Ltd is in solid financial condition with improving profitability, liquidity, and equity base. The business appears to be in a growth phase with a strong operational "heartbeat." The main caution is the moderate long-term debt load and reliance on goodwill assets, which require prudent financial management to maintain stability.

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4. Recommendations for Financial Wellness

• Debt Management:
  Develop a clear plan for servicing and gradually reducing long-term borrowings to decrease financial risk and interest expense burden.

• Cash Flow Monitoring:
  Maintain strong cash flow management practices to ensure liquidity cushions remain healthy, especially with expanding operations.

• Goodwill Review:
  Regularly assess the recoverability and impairment risk of intangible assets to avoid sudden write-downs that could weaken equity.

• Profit Retention & Reinvestment:
  Continue retaining a significant portion of profits to build equity and support growth without over-reliance on external financing.

• Cost Control:
  Keep administrative and operational expenses in check to preserve operating margins as turnover grows.

• Diversify Asset Base:
  Consider investing in tangible assets or other growth opportunities to balance the asset structure and reduce intangible asset concentration risk.

• Financial Reporting & Compliance:
  Maintain timely and accurate financial filings and consider future audit readiness as the company grows beyond small company thresholds.

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