SEBAN COMPOSITES LTD

Executive Summary

SEBAN COMPOSITES LTD is an active micro-entity in the early stages of development with a very modest financial base and minimal operational scale. While current financial health is stable, the company must focus on increasing operational activity and asset investment to strengthen working capital and equity. Timely filings and positive net assets show good administrative control, but significant growth is needed to achieve financial wellness.

SEBAN COMPOSITES LTD - Analysis Report

Company Number: 14156678

Analysis Date: 2025-07-29 20:10 UTC

Financial Health Assessment for SEBAN COMPOSITES LTD (as of 30 June 2024)

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1. Financial Health Score: D

Explanation:
The company shows minimal financial activity and extremely limited net assets (£100), reflecting a fragile financial foundation typical of a very young or early-stage micro-entity. While it is not in distress (no liabilities reported), the scale of operations is negligible, indicating an embryonic stage rather than a healthy, growing business.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Current Assets	£100	Very low cash or liquid assets; minimal resources for day-to-day operation.
Current Liabilities	£0	No short-term debts; symptom of no financial pressure but could also indicate low business activity.
Net Current Assets	£100	Positive but trivial working capital; "healthy cash flow" is not evident given scale.
Net Assets (Equity)	£100	Very low shareholder equity; company has just started accumulating value.
Average Number of Employees	2	Very small workforce consistent with micro-company status.
Account Category	Micro	Subject to minimal reporting requirements; typical for new small businesses.
Industry SIC Code	29320	Manufacture of parts for motor vehicles; capital intensive sector, but no fixed assets reported.

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3. Diagnosis

Symptoms Analysis:

• The company is in its infancy (incorporated June 2022) and has minimal financial footprint.
• The balance sheet shows a tiny positive net asset base, essentially just nominal capital or cash.
• No liabilities reduce risk but also indicate no significant business transactions or borrowing.
• No fixed assets or inventory reported, which is unusual for a manufacturing business, suggesting operations are not yet fully underway or capital investment has not started.
• The increase in average employees from 1 to 2 indicates a slight scale-up but remains very modest.
• Absence of profit & loss data or retained earnings suggests either no trading activity or break-even at best.
• The company filed on time and complies with micro-entity reporting rules, showing good administrative health but the financial "vital signs" are weak.

Medical analogy:
Seban Composites Ltd currently resembles a newborn with vital signs stable but very weak — it is breathing and alive (active status, positive net assets) but has yet to develop strength, resilience, or substantial body mass (capital and operational scale).

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4. Recommendations

To improve financial wellness and build a robust business, Seban Composites Ltd should consider:

1. Increase Operational Activity:
   Initiate or scale up manufacturing operations to generate revenue and build working capital. Healthy cash flow from sales will strengthen financial stability.

2. Asset Investment:
   Acquire key fixed assets or inventory to support production capabilities, which will reflect in tangible balance sheet growth.

3. Financial Planning:
   Develop a comprehensive budget and cash flow forecast to avoid liquidity bottlenecks and plan for investment needs.

4. Capital Injection:
   Consider further equity investment or low-cost borrowing to fund growth initiatives and operational ramp-up.

5. Monitor Key Metrics:
   Track profitability, liquidity ratios, and net asset growth regularly to detect early signs of distress or opportunity.

6. Seek Expert Advice:
   Engage with financial advisors or industry mentors to align business strategy with financial management best practices.

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