Company Number: 13823669

Analysis Date: 2025-07-20 17:59 UTC

Financial Health Assessment Report for SD ACCOUNTING LTD

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1. Financial Health Score: A-

Explanation:
SD ACCOUNTING LTD displays strong financial vitality typical of a well-managed micro-entity. It has demonstrated growth in net current assets and net assets over recent years, indicating robust financial stability. The absence of debt beyond current liabilities and consistent positive shareholders’ funds are signs of a healthy balance sheet. The slight deduction from a perfect score reflects the company's relatively small scale and limited asset base, typical for a micro-entity, rather than risk factors.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	8,456	Positive and increasing, indicating healthy liquidity.
Current Liabilities	1,331	Low short-term obligations, manageable with current assets.
Net Current Assets	7,125	Strong working capital, a sign of operational liquidity.
Net Assets / Shareholders’ Funds	7,125	Positive equity shows the business is solvent and has a cushion against losses.
Fixed Assets	0	No long-term tangible assets—typical for service-oriented micro business.
Employee Count	2 (2024)	Slightly growing workforce, indicating business expansion.
Share Capital	100	Nominal capital, common for small private companies.

Vital Signs Interpretation:
The company’s "vital signs" resemble a healthy patient with a steady pulse: liquidity is strong and improving, no long-term debt burdens, and equity is positive and growing. The increase in net current assets from £4,100 in 2023 to £7,125 in 2024 shows improved financial resilience and capacity to meet short-term obligations comfortably.

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3. Diagnosis: Financial Condition Analysis

• Liquidity: The company enjoys "healthy cash flow" proxy via net current assets, indicating it can meet immediate liabilities without strain. The current ratio (current assets/current liabilities) is approximately 6.36 in 2024, which is excellent and suggests no liquidity distress symptoms.

• Solvency: With net assets positive and growing, SD ACCOUNTING LTD shows no signs of insolvency. The absence of long-term liabilities and provisions further strengthens this view.

• Growth & Stability: The company is showing signs of modest growth, as evidenced by the doubling of net current assets since 2023 and the increase in employee count from 1 to 2. This suggests the business is expanding cautiously but sustainably.

• Asset Structure: No fixed assets are recorded, which aligns with the nature of bookkeeping/accounting services that are low capital intensive. While this limits collateral for borrowing, it reduces risk of depreciation losses.

• Ownership & Control: Mrs. Sylwia Elzbieta Archacka-Davis holds 75-100% ownership and voting rights, ensuring streamlined decision-making. The appointment of a Sales Director in 2025 may signal strategic efforts to drive business development.

• Compliance & Reporting: All filings are up to date with no overdue accounts or confirmation statements, indicating good governance and regulatory compliance.

Symptoms of Distress: None evident. The company is free from overdue filings, excessive liabilities, or declining equity.

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4. Recommendations

• Maintain Strong Liquidity: Continue monitoring working capital to keep the company’s liquidity “in the green.” Avoid overextending credit or incurring unnecessary short-term liabilities.

• Strategic Investment: Consider investing in intangible assets such as software, training, or marketing to support growth, given the absence of fixed assets.

• Expand Revenue Streams: Leverage the appointment of a Sales Director to explore new client acquisition strategies and diversify income sources, enhancing future cash flow stability.

• Risk Management: Although current financials are strong, keep a close watch on expenses and maintain a reserve fund to buffer against unforeseen business disruptions.

• Financial Planning: Develop a medium-term financial plan to transition from micro to small company status, enabling scaling while managing increased operational complexity.

• Governance: Continue timely compliance with filing and corporate governance duties to avoid penalties or reputational damage.

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