SOLLAR PROFESSIONAL SERVICES LIMITED

Executive Summary

Sollar Professional Services Limited, a micro private company active since 2022, exhibits signs of financial distress with negative net assets and working capital. While compliant with filings, its liquidity position is fragile, indicating an urgent need for capital injection and debt restructuring. Prompt management action is essential to restore financial health and prevent insolvency risk.

SOLLAR PROFESSIONAL SERVICES LIMITED - Analysis Report

Company Number: 14281566

Analysis Date: 2025-07-29 19:25 UTC

Financial Health Assessment for Sollar Professional Services Limited

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1. Financial Health Score: D

Explanation:
The company is currently showing signs of financial distress primarily due to negative net assets and net current assets. While it remains active and compliant with filings, the balance sheet reveals a worrying liquidity position. Given the company's short operating history since incorporation in 2022 and recent deterioration in working capital, the grade D reflects a need for urgent financial attention to restore stability.

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2. Key Vital Signs:

Metric	2024 (£)	Interpretation
Current Assets	141	Very low current assets; minimal cash or receivables available to cover liabilities.
Current Liabilities	2,184	Short-term debts exceed current assets by a large margin, indicating liquidity stress.
Net Current Assets	-2,043	Negative working capital—a key "symptom" of financial strain, risk of inability to meet debts.
Net Assets	-2,043	Negative equity suggests liabilities exceed assets; "unhealthy balance sheet" condition.
Shareholders’ Funds	-2,043	Negative retained earnings or contributed capital, indicating possible accumulated losses.
Company Age	2 years	Early stage, so some initial losses or investment phase expected but negative equity is concerning.

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3. Diagnosis:

The company's financial "vital signs" show a clear symptom of distress: negative net current assets and net assets. This means the business owes more to creditors in the short term than it has in liquid or near-liquid assets, placing it at risk of cash flow problems or default on obligations. The negative shareholders’ funds confirm that the company has either incurred losses or has not raised sufficient equity capital to cover obligations.

Since the company is classified as a micro-entity and has only been operating since August 2022, it is likely still in an early developmental or investment phase. However, the absence of audit and minimal disclosures limit insight into profitability or cash flow trends. The appointment of a director only in July 2023 and the lack of employees (average 1, likely the director) suggest a very small operation possibly reliant on limited contracts or funding.

The industry classification includes residential care activities and temporary employment agency services, sectors often requiring upfront costs and regulatory compliance, which could strain initial cash flows.

Overall, the financial health indicates a fragile condition with liquidity challenges and an imbalance between assets and liabilities that must be addressed to avoid worsening financial distress.

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4. Recommendations:

• Improve Liquidity: Focus on increasing current assets—cash or receivables—by accelerating customer payments, reducing inventory or other short-term assets tied up, or injecting additional working capital.
• Refinance or Restructure Short-Term Debt: Negotiate with creditors to extend payment terms or convert short-term liabilities into longer-term debt to ease immediate cash flow pressures.
• Capital Injection: Consider raising equity capital or securing shareholder loans to restore positive net assets and build a stronger balance sheet foundation.
• Cost Control: Review operating expenses carefully to reduce unnecessary costs and preserve cash flow.
• Financial Monitoring: Implement regular cash flow forecasting and financial health checks to detect early warning signs and take proactive steps.
• Seek Professional Advice: Engage with financial advisors or insolvency practitioners promptly to explore restructuring options if worsening trends continue.
• Business Model Review: Reassess the business model in light of the sector's demands and the company's capacity to generate sustainable revenue and profits.

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Medical Analogy Summary:

Sollar Professional Services Limited's financial "pulse" reveals a critically low "blood pressure" in liquidity and a "weak heart" in terms of negative equity. Without immediate "treatment" through capital infusion and debt management, the company risks entering a state of financial shock that could lead to insolvency. Early intervention and continuous monitoring are key to restoring financial wellness.

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