SF QUALITY SOLUTIONS LIMITED

Executive Summary

SF Quality Solutions Limited is financially healthy, with strong liquidity, positive working capital, and growing retained earnings indicating good operational performance. The company's small size and single-director structure present some concentration risks, but no current signs of financial distress exist. Strengthening the equity base and management team will enhance resilience for future growth.

SF QUALITY SOLUTIONS LIMITED - Analysis Report

Company Number: 13029813

Analysis Date: 2025-07-20 18:55 UTC

Financial Health Assessment of SF QUALITY SOLUTIONS LIMITED

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1. Financial Health Score: B+

SF Quality Solutions Limited demonstrates a solid financial footing with healthy liquidity and increasing net assets. The company shows positive working capital, stable cash reserves, and growing retained earnings, indicating good operational health. However, the modest share capital and reliance on one director/shareholder suggest some concentration risk. Overall, the financial "vital signs" reflect a company in good health but with room to build resilience.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£35,114	Healthy short-term assets, primarily cash and debtors, supporting day-to-day operations.
Cash Balance	£32,277	Strong liquidity; cash forms the bulk of current assets – good "cash flow pulse."
Current Liabilities	£9,310	Manageable short-term obligations; coverage by current assets is ample.
Net Current Assets	£25,804	Positive working capital indicating ability to cover immediate liabilities comfortably.
Net Assets / Shareholders’ Funds	£26,699	Growing equity base, reflecting accumulated profits and retained earnings – a strong "equity heart."
Share Capital	£100	Minimal; risk concentration as the company is controlled by a single shareholder/director.
Debtors	£2,837	Reasonable level; some exposure to customer payment risk but well within manageable limits.
Tangible Fixed Assets	£1,105	Small but stable asset base; no heavy investment in fixed assets – typical for service activities.
Provisions for Liabilities	£210	Low deferred tax provision, indicating modest tax timing differences.
Employee Count	1	Very small operation; potential risk if key personnel unavailable.

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3. Diagnosis: Financial Condition Overview

SF Quality Solutions Limited presents the financial "vital signs" of a small, efficiently managed company with a healthy cash flow and stable balance sheet. The company’s liquidity position is strong, akin to a patient with a stable heartbeat and good blood pressure, meaning it can comfortably meet short-term obligations without stress.

The increase in net current assets and shareholders' funds over the past four years shows that the company is steadily building financial strength, akin to a patient gaining muscle tone and resilience. The retained earnings growth signifies profitability and reinvestment of profits back into the business.

However, the company is very small in scale (single employee/director and low share capital), which can be compared to a patient with a good constitution but vulnerable due to limited redundancy in management and capital structure. The business’s reliance on a single key individual for control and operation is a critical factor to monitor.

The low fixed asset base is typical of a service business and does not pose a concern. Debtors have decreased in 2024 compared to 2023, suggesting improved collections or reduced credit sales, which is positive for cash flow health.

There are no signs of financial distress symptoms such as overdue filings, excessive liabilities, or negative working capital.

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4. Recommendations: Improving Financial Wellness

• Enhance Capital Base: Consider increasing share capital or introducing additional investors to diversify ownership and strengthen the equity foundation. This will improve the company's financial "immune system" against shocks.

• Build Management Depth: Given the company’s reliance on a single director controlling 100% of shares, planning for succession or additional directors could enhance operational resilience.

• Monitor Debtor Days: Continue to focus on debtor management to maintain strong liquidity and avoid cash flow disturbances.

• Plan for Growth Investments: Evaluate opportunities for reinvesting profits into fixed assets or technology to support growth without overextending resources.

• Maintain Compliance Discipline: Continue timely filing of accounts and confirmation statements to avoid regulatory "infections" such as penalties or loss of good standing.

• Consider Pension and Tax Planning: The company operates a defined contribution pension scheme and has deferred tax provisions; regular review of these areas can optimize tax efficiency and long-term financial health.

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