SECURITIES SERVICES TECH LTD

Executive Summary

SECURITIES SERVICES TECH LTD is a newly incorporated micro-entity with a fragile financial position, showing near-zero net assets and an almost equal balance of current assets and liabilities. The company's financial health score is D, reflecting a precarious liquidity situation and minimal equity cushion. Immediate actions to strengthen capital and manage cash flow are essential to improve sustainability and reduce insolvency risk.

SECURITIES SERVICES TECH LTD - Analysis Report

Company Number: 15111700

Analysis Date: 2025-07-19 12:03 UTC

Financial Health Assessment of SECURITIES SERVICES TECH LTD

---

1. Financial Health Score: D

Explanation:
The company shows an extremely thin equity base (£6 net assets) against large current assets and almost equal current liabilities (£13.64 million each). This near-zero net asset position signals very tight financial conditions and potential liquidity stress despite large asset figures. The score D reflects significant caution due to the precarious balance sheet structure.

---

2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£13,643,045	Large liquid or receivable assets indicating potential cash or near-cash holdings.
Current Liabilities	£13,643,497	Almost identical to current assets, signaling liabilities due within one year nearly wipe out liquid assets.
Net Current Assets (Working Capital)	£13,643,045 (reported)	Data appears inconsistent; logically should be negative (Assets - Liabilities). This may be a reporting/formatting quirk but suggests negligible net working capital.
Net Assets (Equity)	£6	Minimal shareholder equity, indicating the company has almost no cushion to absorb losses or financial shocks.
Fixed Assets	£458	Negligible long-term assets, typical for a micro company in software development.
Shareholder Funds	£6	Reflects minimal capital invested or retained earnings.

---

3. Diagnosis: Financial "Symptoms" and Underlying Business Health

• Symptom: Zero Equity Cushion
  With only £6 in net assets and shareholders’ funds, the company is essentially "walking a financial tightrope." This means any losses or unexpected expenses could immediately erode capital, risking insolvency.

• Symptom: Balance Sheet Structure
  The nearly equal current assets and current liabilities suggest the business is highly leveraged at the short-term level, with little to no working capital buffer. This is a symptom of potential liquidity distress — the company may struggle to meet short-term obligations if timing or cash flow issues arise.

• Symptom: No Employees and Early Stage
  The company was incorporated recently (Sep 2023), has no employees, and is categorized as a micro entity. This is typical for a startup or holding entity in early development, possibly not yet generating significant revenue.

• Micro Entity Reporting
  The accounts are prepared under micro-entity provisions with minimal disclosure, so detailed operational or profitability data is absent, limiting deeper diagnostic insight.

• Control and Governance
  Owned and controlled 100% by one director (Ms Dorothee De Seguier), indicating centralized decision-making but also concentration risk.

---

4. Prognosis: Future Financial Outlook

Given its current financial structure and early stage, the company’s outlook depends heavily on:

• Capital Injection or Revenue Generation: Without additional equity or generating meaningful profit/cash flow, the company risks ongoing liquidity strain.
• Cash Flow Management: Maintaining healthy inflows to cover liabilities as they fall due is critical to avoid financial distress.
• Growth and Funding Plans: As a software development business, scaling could improve financial health if successful, but the current financial snapshot is fragile.

Without intervention or positive business developments, the company is vulnerable to insolvency risk in the near term.

---

5. Recommendations: Actions to Improve Financial Wellness

• Strengthen Equity Base: Consider capital injections or shareholder loans to build net assets and provide a financial buffer.
• Improve Working Capital Management: Monitor and manage receivables and payables carefully to avoid liquidity crunches.
• Financial Reporting Enhancements: Transition to more detailed accounts once size thresholds exceed micro entity limits to provide stakeholders with clearer insights.
• Strategic Business Planning: Develop and implement a business plan targeting revenue growth and sustainable profitability.
• Engage Professional Advice: Consult financial and legal advisors early to structure funding and manage financial risks effectively.

---

Medical Analogy Summary:
The company’s financial "vital signs" reveal a dangerously low "blood pressure" in terms of net equity — it has just enough "oxygen" (assets) to keep operating but no reserves. This is akin to a patient with borderline vital signs who requires immediate intervention to avoid collapse. Without prompt capital support and operational improvements, the company faces a risk of "financial cardiac arrest."

---