SOFTWARE RECRUITMENT SOLUTIONS LIMITED

Executive Summary

SOFTWARE RECRUITMENT SOLUTIONS LIMITED has demonstrated a significant financial recovery in the latest year, moving from a strained liquidity position to a healthy working capital and positive net assets. While currently financially stable, the company remains small with limited capital, so continued prudent financial management is recommended to sustain growth and resilience.

SOFTWARE RECRUITMENT SOLUTIONS LIMITED - Analysis Report

Company Number: 12949078

Analysis Date: 2025-07-29 14:06 UTC

Financial Health Assessment for SOFTWARE RECRUITMENT SOLUTIONS LIMITED

---

1. Financial Health Score: B

Explanation:
The company exhibits a significant financial turnaround in the latest financial year ending October 2024. From a position of net current liabilities and marginal net assets in prior years, it now shows strong positive net current assets and a healthy increase in net assets. This improvement reflects solid financial recovery and strengthening liquidity, meriting a "B" grade. However, given the company’s micro size, limited capital base, and relatively short trading history, there remains some caution before awarding a higher grade.

---

2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	2,914	Stable investment in long-term resources
Current Assets	42,272	Significant increase, mainly cash or receivables
Current Liabilities	20,442	Increased but well covered by current assets
Net Current Assets (Working Capital)	21,830	Healthy positive working capital — good short-term liquidity
Net Assets (Equity)	24,744	Positive and growing shareholder equity
Share Capital	100	Minimal paid-up capital; business largely financed by retained earnings

Interpretation:
The company’s liquidity is much improved, with current assets more than doubling its current liabilities, indicating "healthy cash flow" and ability to meet short-term obligations without distress. The positive net assets confirm growing financial stability and capital buffer. The micro entity status aligns with modest fixed assets and limited employee headcount (1). The turnaround from prior years’ negative working capital signals successful operational or financial restructuring.

---

3. Diagnosis

Symptoms Analysis:

• The company showed persistent "symptoms of distress" during 2020-2023, including negative net current assets and very thin net equity. This suggested cash flow constraints and possibly difficulty in meeting short-term debts, a red flag for liquidity risk.
• In 2024, there is a pronounced improvement: current assets rose sharply (likely from increased cash or receivables), leading to positive net current assets and a net asset base that is nearly 40 times higher than the previous year. This resembles a patient recovering robustly from financial illness.
• The micro status and single director/employee suggest a lean operation, possibly a start-up or early growth phase recruiting business. The absence of audit requirements also indicates limited complexity and scale.

Overall Financial Condition:
The company is currently financially sound and liquid, with no immediate risk of insolvency. The sharp improvement in working capital and equity signals effective management actions or business growth. However, the small capital base and limited history mean the company should continue monitoring cash flow closely and aim to build reserves.

---

4. Recommendations

• Maintain Healthy Cash Flow: Continue to monitor receivables and payables closely to prevent liquidity dips, especially as the company grows.
• Build Capital Reserves: Consider increasing share capital or retaining earnings to strengthen the equity base and provide a buffer against future shocks.
• Diversify Income Streams: As a recruitment solutions provider, expanding client base or service offerings can reduce dependency risks.
• Financial Planning: Implement regular cash flow forecasting and budgeting to anticipate funding needs early.
• Compliance & Reporting: Ensure timely filing of accounts and confirmation statements to maintain regulatory good standing and avoid penalties.
• Risk Management: Given the company’s size, consider minimal insurance and contingency planning to mitigate operational risks.

---