SATCOM SERVICES LTD

Executive Summary

SATCOM SERVICES LTD maintains a solid financial foundation typical of a small engineering consultancy, with positive working capital and equity supporting ongoing operations. While liquidity shows a slight tightening, no immediate financial distress is evident. Continued focus on cash flow management and strategic growth will help sustain and enhance financial wellness moving forward.

SATCOM SERVICES LTD - Analysis Report

Company Number: 13549141

Analysis Date: 2025-07-20 17:27 UTC

Financial Health Assessment Report: SATCOM SERVICES LTD (as of 31 August 2024)

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1. Financial Health Score: B

Explanation:
SATCOM SERVICES LTD exhibits solid financial footing with positive net current assets and shareholders' funds consistent over recent years. The company benefits from a stable balance sheet typical of a micro-entity. However, a slight decline in net current assets and shareholders' funds in the latest year suggests mild tightening of liquidity or increased obligations. Overall, the company is financially healthy but should monitor cash flow and working capital closely.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	11,606	13,740	Cash and short-term resources have slightly declined, indicating reduced liquidity.
Current Liabilities	6,166	7,027	Short-term debts have decreased, easing immediate financial pressure.
Net Current Assets	5,440	6,713	Positive working capital, but trend shows a mild decrease—still healthy.
Total Assets less Current Liabilities	5,441	6,714	Reflects overall net asset value after short-term obligations; slight decrease.
Shareholders' Funds	5,441	6,714	Equity remains positive, showing retained earnings or capital contributions.
Number of Employees	1	1	Company operates with very lean staffing, typical for micro-entities.

Additional Notes:

• The company is a micro-entity, filing under simplified financial reporting standards, which limits detailed disclosures.
• No audit is required or conducted, so figures are unaudited but compiled by a professional accountant.
• The company has maintained compliance with filing deadlines, indicating good governance.

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3. Diagnosis: Financial Condition and Underlying Health

SATCOM SERVICES LTD presents the "vital signs" of a small but stable enterprise. The positive net current assets signify a "healthy cash flow pulse," indicating the company can cover short-term obligations without stress. The slight downward trend in working capital and equity, however, is a "symptom of mild liquidity tightening" or marginally increased expenses/debt repayments.

Operating with one employee reflects a very lean operational structure, common for consulting or technical advisory businesses in the engineering sector (SIC 71122). This low overhead supports financial stability but may limit growth capacity unless investment increases.

The absence of audit and limited disclosures make it harder to assess profitability or cash flow trends fully, but the available data shows no signs of financial distress such as negative equity or current liabilities exceeding current assets.

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4. Recommendations: Path to Improved Financial Wellness

• Strengthen Liquidity Monitoring:
  Regularly track cash flow and working capital to avoid hidden cash crunches. Consider cash flow forecasting to anticipate seasonal or operational fluctuations.

• Build Cash Reserves:
  Aim to increase current assets slightly to build a buffer against unforeseen expenses or delayed payments, enhancing financial resilience.

• Evaluate Expense Management:
  Investigate reasons for the slight decrease in net current assets—whether due to rising costs or reduced income—and take corrective actions.

• Strategic Growth Planning:
  With limited staff and micro-entity scale, consider whether investment in people or technology could unlock new revenue streams or improve efficiency.

• Maintain Compliance and Transparency:
  Continue timely filings and consider voluntary disclosures if seeking external financing or partnerships to boost credibility.

• Prepare for Scaling:
  As the company grows, anticipate transitioning from micro-entity accounting to small or medium entity requirements, which will require more detailed financial management and reporting.

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