SOLEIL UNIVERSAL NETWORKS LTD

Executive Summary

SOLEIL UNIVERSAL NETWORKS LTD exhibits robust liquidity and positive working capital, indicating a financially healthy position for its early stage. The company's strong cash reserves and growing equity provide a solid foundation, but attention should be given to detailed profit reporting and managing rising short-term liabilities. With prudent financial management, the company is well-placed for sustainable growth.

SOLEIL UNIVERSAL NETWORKS LTD - Analysis Report

Company Number: 13903624

Analysis Date: 2025-07-20 16:09 UTC

Financial Health Assessment: SOLEIL UNIVERSAL NETWORKS LTD

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1. Financial Health Score: B

Explanation:
SOLEIL UNIVERSAL NETWORKS LTD shows solid financial footing for a young company incorporated in 2022. The company demonstrates strong liquidity, positive working capital, and growing shareholder equity, which are signs of good financial health. However, the absence of profit and loss details and reliance on cash and debtors without fixed assets suggest a need for cautious monitoring as the company scales. Hence, a grade of B reflects a generally healthy position with room for improvement and vigilance.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£167,360	Healthy short-term asset base, mainly cash-heavy.
Cash at Bank	£154,417	Very strong liquidity ("healthy cash flow") to meet obligations.
Debtors	£12,943	Some receivables, manageable but should be monitored for collection efficiency.
Current Liabilities	£46,747	Obligations due within one year, relatively low compared to assets.
Net Current Assets	£120,613	Positive working capital indicates good short-term financial health.
Shareholders' Funds	£120,613	Growing equity base, indicating retained earnings and capital injection.
Company Age	2 years	Early-stage company; financial stability is promising for its age.
Employee Count	1 (Director only)	Lean operation, low fixed costs, but limited workforce.

Interpretation:

• The company’s "vital signs" show a robust liquidity position. Cash makes up the bulk of current assets, indicating the business has "healthy cash flow" to cover debts and operational needs.
• Debtors are modest, suggesting effective credit management but should be watched to avoid cash flow issues.
• Current liabilities are manageable and have increased but remain well covered by liquid assets.
• Positive net current assets reflect the absence of immediate financial distress symptoms.
• Shareholders’ funds have increased significantly since inception, reflecting retained earnings or capital contributions, a healthy sign of value accumulation.

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3. Diagnosis

SOLEIL UNIVERSAL NETWORKS LTD presents as a financially sound and stable company in its early stages. The company operates with a strong liquidity buffer, meaning it can comfortably meet short-term obligations without stress. The reliance on cash rather than fixed or long-term assets suggests a service-oriented IT consultancy model with minimal capital investment needs, which is common in this industry.

There are no signs of financial distress such as negative working capital, excessive liabilities, or declining equity. The company's single employee structure (the director) points to a lean operating model, which reduces overhead but may impact scalability.

Symptoms to monitor:

• The increase in "other creditors" from £838 to £17,074 over the year needs careful review to ensure these are managed and not indicative of delayed payments or supplier disputes.
• The lack of an income statement in the filing means profitability and revenue trends are not visible; this is a gap in the diagnostic picture.
• The company’s growth and investment plans should be aligned with maintaining liquidity and managing working capital efficiently.

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4. Recommendations

To maintain and improve financial wellness, SOLEIL UNIVERSAL NETWORKS LTD should consider the following actions:

• Improve Financial Reporting Transparency:
  Although the company is exempt from audit, providing at least a summarized profit and loss account or management accounts would enhance understanding of profitability and operational efficiency.

• Monitor Receivables and Payables:
  Keep a close watch on debtor aging to ensure timely cash inflows. Similarly, review the rise in "other creditors" to avoid accumulating overdue payables that could strain supplier relationships.

• Plan for Growth and Scalability:
  As a micro/small IT consultancy, investing in human resources and infrastructure may be necessary to grow revenue. Financial planning should ensure working capital remains sufficient to support expansion.

• Maintain Strong Cash Reserves:
  Continue to prioritize cash management to avoid liquidity crunches, especially since the business currently relies heavily on cash assets.

• Consider Diversifying Asset Base:
  While a cash-heavy balance sheet is good short-term, investing in fixed assets or technology could improve operational capacity and long-term value.

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