SHREEM HOLDINGS LTD

Executive Summary

SHREEM HOLDINGS LTD shows a financially healthy profile typical of a well-managed holding company, with strong liquidity, no liabilities, and growing net assets. While current operations appear minimal, the company’s solid asset base and cash reserves provide a stable foundation. To enhance financial wellness, the company should focus on clarifying its business model and preparing for operational growth.

SHREEM HOLDINGS LTD - Analysis Report

Company Number: 14124837

Analysis Date: 2025-07-20 14:57 UTC

Financial Health Assessment of SHREEM HOLDINGS LTD

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1. Financial Health Score: B

Explanation:
SHREEM HOLDINGS LTD demonstrates a solid and improving financial position over the recent years, reflected in steadily increasing net assets and shareholders’ funds. The company has no current liabilities, a healthy cash balance, and recent investment in fixed assets. However, the business is relatively young (incorporated in 2022) with modest scale and limited operational history, which restrains a top grade. The overall financial "vital signs" indicate stability with room to mature.

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2. Key Vital Signs & Interpretation

Metric	2025 (£)	Interpretation
Fixed Assets	5,050	Indicates investment in long-term assets, suggesting strategic positioning or asset base growth.
Current Assets	17,038	Entirely cash, representing strong liquidity - a "healthy cash flow" symptom.
Current Liabilities	0	No short-term debts or obligations, signaling low financial risk or strain.
Net Current Assets	17,038	Positive working capital, ensuring operational flexibility.
Net Assets (Shareholders’ Funds)	22,088	Equity base growing from £220 in 2024 to £22,088 in 2025, showing capital injection or retained earnings.
Profit & Loss Reserve	21,988	Represents accumulated profits or retained funds, indicating profitability or capital retention.
Share Capital	100	Small but stable share capital base for company size.
Debtors	0	No outstanding receivables, indicating either limited trading or efficient collections.
Turnover & Employees	Not disclosed	Likely minimal or no trading activity, common in holding companies.

Additional Observations:

• The company’s SIC code (64209) classifies it as a holding company, which usually means limited trading activity and asset management focus.
• Strong cash position with no payables suggests no liquidity distress or short-term financing issues.
• The increase in fixed assets (£5,050) likely represents an investment or acquisition, a positive growth sign.
• No employees are reported, typical for holding companies, reducing payroll liabilities.

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3. Diagnosis: Overall Financial Condition

SHREEM HOLDINGS LTD exhibits the financial "heartbeat" of a stable holding company. The absence of liabilities and a strong cash reserve depict a healthy financial system free from immediate distress symptoms such as liquidity shortages or overleveraging. The company’s net asset base has expanded dramatically in the latest financial year, reflecting capital growth or reinvestment efforts, which is a good sign of financial vitality.

However, the lack of trading income or operational revenue (turnover not disclosed) and no employees suggest the business is in an early stage or in a holding capacity rather than an active trading entity. This condition implies that the company's financial wellness depends heavily on asset value and capital management rather than operational cash flow generation.

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4. Recommendations: Improving Financial Wellness

• Clarify Business Activity & Revenue Streams:
  If the company intends to move beyond holding assets, developing trading operations and generating turnover will be critical to sustain long-term financial health.

• Maintain Strong Cash Reserves:
  Continue to hold sufficient liquidity to cover any unforeseen obligations or investment opportunities, as demonstrated.

• Monitor Asset Investments:
  Ensure fixed asset acquisitions align with clear strategic goals and are regularly reviewed for impairment risks.

• Consider Diversification:
  If reliant on limited assets, explore diversification of investments to spread financial risk.

• Prepare for Growth:
  As the company matures, planning for operational scaling (employees, operating expenses) and managing working capital will be important to avoid future distress symptoms.

• Regular Financial Reviews:
  Continue methodical financial monitoring and timely filings to maintain compliance and transparency.

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