SB CONTROLS GROUP LTD

Executive Summary

SB CONTROLS GROUP LTD exhibits strong initial financial health with positive working capital and equity, reflecting a well-capitalised start-up status. The company currently faces no financial distress symptoms, supported by low liabilities and a lean operational model. With prudent financial management and strategic growth planning, the company is well-positioned for a stable and promising financial future.

SB CONTROLS GROUP LTD - Analysis Report

Company Number: SC795214

Analysis Date: 2025-07-29 19:54 UTC

Financial Health Assessment: SB CONTROLS GROUP LTD

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1. Financial Health Score: B

Explanation:
As a newly incorporated micro entity with a single financial year of data, SB CONTROLS GROUP LTD demonstrates a strong financial foundation. The company shows a healthy liquidity position and positive net assets, indicating sound initial capitalisation and working capital management. However, limited operational history and minimal fixed assets suggest early-stage development with scope for growth and risk exposure to market conditions. The score B reflects a solid start with room for scalability and operational maturity.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	350	Minimal investment in long-term assets, typical for a start-up stage.
Current Assets	5,584	Healthy short-term resources, primarily cash or equivalents.
Current Liabilities	111	Very low short-term obligations, indicating manageable payables.
Net Current Assets	5,473	Strong working capital, showing ability to cover immediate liabilities.
Total Assets less CL	5,823	Assets net of short-term liabilities remain positive and stable.
Net Assets / Shareholders Funds	5,823	Positive equity base, demonstrating owner investment and retained value.
Average Number of Employees	1	Very lean operation, low overhead cost structure.

• Liquidity ("Pulse Rate"): The company’s net current assets (£5,473) significantly exceed current liabilities (£111), indicating a robust liquidity position—akin to a healthy pulse in a financial body. This suggests SB CONTROLS GROUP LTD can meet short-term obligations without distress.

• Capital Structure ("Bone Strength"): Positive net assets (£5,823) reflect a solid equity base, indicating financial "bone strength" and no reliance on debt at this stage, reducing financial risk.

• Operational Scale ("Muscle Mass"): With only 1 employee and minimal fixed assets, the company’s operational scale is small but focused. This is expected for a start-up and represents "lean muscle" ready to develop.

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3. Diagnosis

SB CONTROLS GROUP LTD is in the early stages of its financial lifecycle—akin to a young adult entering the business world with strong vitality but limited historical data. The balance sheet shows no symptoms of financial distress: no debt burden, positive working capital, and net assets funded through shareholder equity. The minimal fixed asset base and small employee count suggest operations are just beginning, with limited operational complexity.

There are no warning signs such as overdue filings, director disqualifications, or negative equity. The company’s financial "vital signs" are stable, indicating an absence of "symptoms" like cash flow problems or liquidity crunches.

However, the diagnosis also notes that with growth, the company will need to manage increasing liabilities, invest in fixed assets, and potentially take on financing. The current healthy state provides a good prognosis if prudent financial management continues.

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4. Recommendations

• Maintain Healthy Cash Flow: Ensure ongoing monitoring of cash inflows and outflows to sustain liquidity, especially as operations expand.

• Plan Asset Investment: Consider strategic investment in fixed assets to support future growth, but balance this against cash availability to avoid overextension.

• Build Financial Reserves: Gradually accumulate profit reserves to strengthen the equity base and buffer against future market fluctuations.

• Compliance Vigilance: Keep up with timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

• Scalability Preparedness: Prepare for operational scaling by evaluating staffing needs and cost management to maintain financial health as turnover grows.

• Risk Management: Monitor industry-specific risks in construction installation and diversify client base to mitigate demand variability.

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