Company Number: 15083738

Analysis Date: 2025-07-20 17:58 UTC

Financial Health Assessment of SCI-REC LTD

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1. Financial Health Score: B

Explanation:
SCI-REC LTD shows a solid early-stage financial position with strong net assets relative to its size and micro-entity status. The company has a healthy working capital position and positive net assets, indicating financial stability and capacity to meet short-term obligations. However, with only one employee and limited operating history (incorporated in 2023), the company’s financial profile is still nascent and somewhat limited in complexity. The presence of long-term creditors near £100k also warrants monitoring. The score B reflects a healthy but early-stage financial profile with room for growth and vigilance.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£1,472	Minimal investment in long-term assets, typical for a young consulting firm.
Current Assets	£188,846	Strong liquidity position—cash/debtors likely to support operations.
Current Liabilities	£99,199	Moderate short-term obligations, manageable given current assets.
Net Current Assets	£188,846	Positive working capital signifies healthy short-term financial flexibility.
Creditors > 1 Year	£99,199	Considerable long-term liabilities relative to asset base; careful management needed.
Net Assets / Shareholders’ Funds	£91,119	Positive equity base, indicating the company’s net worth after liabilities.
Share Capital	£4	Nominal share capital, typical for micro-entities.
Employees	1	Very small operation, low fixed overheads expected.

Overall:
The company exhibits “healthy cash flow” signs through positive net current assets and net assets, signaling sound short-term liquidity and solvency. The presence of long-term creditors is a “symptom to watch,” as it could impact future flexibility.

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3. Diagnosis

SCI-REC LTD is in the very early stages of its business lifecycle, with financial statements reflecting a small but stable private limited company operating in management consultancy (SIC 70229). The balance sheet indicates a “healthy pulse” with more current assets than liabilities and a positive net asset position of £91,119, showing the company is solvent and can comfortably meet obligations due within one year.

The relatively low fixed asset base and single employee denote a service-oriented, low-capital business model typical of consultancy firms. The presence of long-term creditors amounting to around £99k is a “sign of structural financing,” possibly loans or deferred liabilities, which should be managed prudently to avoid liquidity strain.

The company is not overdue on filings and is compliant with statutory deadlines, indicating good administrative health and governance.

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4. Recommendations

To maintain and improve financial wellness, SCI-REC LTD should consider the following actions:

• Monitor Long-term Liabilities: Regularly review repayment terms and ensure cash flow projections cover these obligations to avoid financial stress.
• Build Reserves: As the company grows, aim to increase retained earnings and cash reserves to enhance financial resilience.
• Expand Revenue Streams: Given the company’s nascent stage, diversifying clients and projects can reduce dependency risk and stabilize income.
• Governance Controls: Continue timely filing and compliance efforts to avoid penalties and maintain corporate reputation.
• Invest in Growth: Consider reinvesting profits in marketing, technology, or human resources to scale operations sustainably.
• Cash Flow Management: Maintain vigilant tracking of receivables and payables to preserve “healthy cash flow” and avoid liquidity bottlenecks.

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