SB LINKS LIMITED

Executive Summary

SB LINKS LIMITED shows a solid financial footing with growing liquidity and net assets, indicating healthy financial management for a micro-entity. The company is stable with no immediate risks but should focus on profitability tracking and strategic growth planning to enhance long-term financial wellness.

SB LINKS LIMITED - Analysis Report

Company Number: 13635016

Analysis Date: 2025-07-20 15:47 UTC

Financial Health Assessment for SB LINKS LIMITED

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1. Financial Health Score: B

Explanation:
SB LINKS LIMITED demonstrates a solid and improving liquidity position with positive net current assets and growing shareholder funds over the recent years. As a micro-entity with no employees, its financial profile is stable, showing a "healthy cash flow" sign through increased current assets. However, the relatively small scale and absence of detailed profitability data limit a higher grade. The company is financially sound but still in an early growth phase.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Trend & Interpretation
Current Assets	9,806	6,022	Increased by ~63%; indicates improved liquidity
Current Liabilities	1,013	1,429	Decreased; better short-term debt management
Net Current Assets	8,793	4,593	Positive and rising; strong working capital
Net Assets / Shareholder Funds	8,793	4,593	Nearly doubled; reflects accumulated retained earnings
Employees	0	0	No staff suggests low operational complexity

Interpretation:

• Liquidity: The company has a healthy cash cushion relative to short-term debts, signaling no immediate "symptoms of distress" in cash flow or solvency.
• Solvency: Positive and growth in net assets suggest that liabilities are well-covered by assets, indicating financial stability.
• Scale & Activity: As a micro-entity with no employees, the company is likely in a start-up or service-based phase with low overheads.

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3. Diagnosis

SB LINKS LIMITED is exhibiting signs of good financial "vitality." The steady increase in current assets and net assets over the last two years indicates effective capital management and possibly growing operational activity or cash reserves. The low and decreasing current liabilities further support a stable short-term financial position without over-reliance on creditors.

The absence of employees suggests minimal operational complexity, which lowers fixed costs and financial strain but also limits scalability unless the company plans to expand. The company’s classification under SIC code 82990 (Other business support service activities not elsewhere classified) aligns with this profile of a small, service-oriented business with flexible cost structures.

No indications of financial distress, such as negative working capital or increasing debt burdens, are present. The company’s exemption from audit reflects its micro-entity status, which also means less detailed financial data is publicly available.

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4. Recommendations

To maintain and improve financial wellness, SB LINKS LIMITED should consider:

• Monitor Cash Flow Regularly: Maintain "healthy cash flow" by forecasting and managing inflows/outflows to avoid liquidity crunches as the business grows.
• Build Profitability Metrics: Although current assets are rising, tracking and improving profitability (gross and net margins) will provide a more complete picture of financial health beyond balance sheet strength.
• Plan for Growth: If scaling is a goal, consider hiring or outsourcing strategically to support increased business activity while managing costs prudently.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Financial Reporting Enhancements: As the business develops, consider moving beyond micro-entity reporting to more detailed accounts to attract investors or lenders if needed.
• Risk Management: Establish basic financial controls and contingency plans to handle unexpected expenses or downturns ("symptoms of distress").

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