SOAR MEP LTD

Executive Summary

SOAR MEP LTD is financially sound with positive working capital and growing net assets, consistent with a healthy micro-entity consultancy. While the company shows no signs of distress, its small scale and minimal fixed assets suggest a need for careful cash flow management and strategic growth planning to enhance resilience. Implementing these recommendations will support continued financial wellness and sustainable expansion.

SOAR MEP LTD - Analysis Report

Company Number: 13004889

Analysis Date: 2025-07-20 14:31 UTC

Financial Health Assessment Report: SOAR MEP LTD

---

1. Financial Health Score: B

Explanation:
SOAR MEP LTD demonstrates a generally sound financial position for a micro-entity. It maintains positive net current assets (working capital), increasing net assets year-on-year, and a small but positive equity base. However, the company’s fixed assets are minimal, and the scale of operations is modest, which limits its resilience to shocks. The score B reflects healthy fundamentals with room for growth and improved asset management.

---

2. Key Vital Signs

Metric	2023 Value	Interpretation
Fixed Assets	£546	Very low fixed asset base, indicating limited investment in long-term resources or equipment.
Current Assets	£61,217	Healthy level of liquid and short-term assets, likely cash and receivables, supporting operations.
Current Liabilities	£45,912	Moderate short-term obligations; manageable given current assets.
Net Current Assets	£15,305	Positive working capital, a "healthy cash flow" symptom indicating the business can cover short-term debts.
Net Assets (Equity)	£15,851	Positive net worth reflecting accumulated retained earnings and shareholder funds.
Share Capital	£10	Nominal share capital, typical for micro-entities.
Employees	2	Small team size consistent with Micro category status.

Additional Notes:

• The company is classified as a micro-entity, which limits its operational complexity and financial scale.
• The increase in net current assets from £9,662 (2022) to £15,305 (2023) is a positive symptom of improving liquidity.
• The low fixed assets suggest the company is likely service-oriented and not capital-intensive, consistent with management consultancy activities (SIC 70229).

---

3. Diagnosis

SOAR MEP LTD presents as a financially stable micro-entity with "healthy cash flow" indicators. The positive and growing net current assets and net equity signal that the company is managing its short-term obligations well and slowly building value. The low fixed assets base is typical for a consultancy business that depends more on intellectual capital and human resources than physical assets.

The balance sheet shows no signs of distress such as negative working capital or declining equity, which are common "symptoms" of financial strain. The steady increase in shareholders’ funds from £10 in 2020 to £15,851 in 2023 reflects profitable operations or effective capital injections.

However, because the company is small and has minimal fixed assets, it may be vulnerable to external shocks or cash flow interruptions. The small employee base and limited asset base mean the business must maintain tight control over receivables and payables to avoid liquidity issues.

---

4. Recommendations

To enhance financial wellness and resilience, consider the following actions:

1. Strengthen Working Capital Management:
   Maintain or improve the positive net current assets position by managing receivables and payables efficiently. Avoid overdue debts to preserve liquidity.

2. Build Fixed Asset Base Strategically:
   While not capital-intensive, consider small investments in technology or equipment that can improve productivity or service quality without overextending finances.

3. Monitor Profitability Metrics:
   As detailed profit and loss data is not available, ensure regular monitoring of margins and cash flow statements to detect early signs of financial stress.

4. Plan for Growth:
   Develop a strategic plan to scale operations sustainably, possibly increasing headcount or diversifying services, while safeguarding financial stability.

5. Maintain Compliance Vigilance:
   Keep up with filing deadlines and statutory requirements to avoid penalties and reputational risk.

---