SASANDRA LTD

Executive Summary

Sasandra Ltd is a newly formed micro company with a very limited financial base and fragile liquidity. While it currently meets obligations, its minimal net assets and working capital leave it vulnerable to cash flow disruptions. To strengthen financial health, the company should focus on improving cash flow management, increasing capital reserves, and driving revenue growth.

SASANDRA LTD - Analysis Report

Company Number: 15236174

Analysis Date: 2025-07-20 15:17 UTC

Financial Health Assessment for SASANDRA LTD

---

1. Financial Health Score: D (Poor)

Explanation:
Sasandra Ltd is a newly incorporated micro private limited company with minimal financial activity and very limited net assets (£19). The company's balance sheet shows a precariously low net current asset position, indicating extremely tight liquidity. While no overdue filings or directors’ concerns are apparent, the financial "vital signs" suggest the company is in an early and fragile stage of financial health, requiring careful monitoring and improvement.

---

2. Key Vital Signs:

Metric	Value (£)	Interpretation
Current Assets	12,282	Very low current assets, mostly cash (£9,974) and debtors.
Current Liabilities	12,263	Almost equal to current assets, leaving minimal working capital.
Net Current Assets (Working Capital)	19	Critically low—barely covers short-term obligations.
Net Assets	19	Extremely low, indicating minimal shareholder equity.
Shareholders’ Funds	19	Reflects minimal capital invested and retained earnings.
Number of Employees	4	Small workforce consistent with micro entity status.
Turnover	Not disclosed	No turnover details, likely minimal or just starting operations.

Interpretation:

• The company has almost no buffer for short-term financial shocks, indicating a "symptom of distress" in cash flow management.
• The cash position is positive but insufficient to cover liabilities beyond immediate obligations.
• The minimal net assets imply the company is still at the seed stage or has yet to generate significant retained earnings.
• Absence of turnover data and profit and loss account filing suggests limited operational history.

---

3. Diagnosis:

Sasandra Ltd's financial condition is akin to a patient in the early stages of life with fragile health markers. The company shows "vital signs" typical of a start-up or newly formed entity: low asset base, minimal equity, and tight liquidity.

• Liquidity Status: The nearly balanced current assets and liabilities mean the company has a "healthy but fragile cash flow"—enough to meet immediate obligations but vulnerable to any delays in cash collection or unexpected expenses.
• Capital Adequacy: The nominal share capital and retained earnings indicate minimal financial reserves. This is common for a company in its first year but limits capacity for growth or absorbing losses.
• Operational Outlook: Without disclosed turnover or profit figures, it is difficult to assess operational success, but the financial structure suggests the company is still developing its business model.
• Risk Factors: The main "symptom" to watch is the tight working capital. Any cash flow disruption could quickly lead to liquidity distress.

Overall, the company is at a critical juncture where financial stability depends on ramping up revenues and careful cash management.

---

4. Recommendations:

To improve the financial wellness of Sasandra Ltd and ensure a sustainable future, I recommend the following steps:

1. Enhance Cash Flow Monitoring:
   Implement strict cash flow forecasting to anticipate obligations and avoid liquidity crunches. Consider negotiating better payment terms with suppliers and customers to smooth inflows and outflows.

2. Increase Capital Reserves:
   Explore options for additional equity investment or shareholder loans to build a stronger capital base, which will act as a financial cushion.

3. Focus on Revenue Generation:
   Prioritize activities that convert to cash quickly. Since turnover details are absent, establishing consistent sales or service contracts should be a business focus to generate operating cash flow.

4. Cost Control:
   Keep operating expenses tightly controlled to preserve the limited financial resources, especially given the small employee base.

5. Timely Financial Reporting:
   Although current filings are up to date, ensure future accounts include full profit and loss details to provide a clearer picture of business performance and support better decision-making.

6. Seek Professional Advice:
   Engage with financial advisors or accountants to set up robust financial systems and receive guidance on tax efficiencies and funding options.

---