SOLUTIONS AB LTD

Executive Summary

SOLUTIONS AB LTD shows signs of financial dormancy with minimal assets and no trading activity, reflecting a fragile financial state. Immediate steps to generate operations and strengthen capital are critical to improve sustainability and avoid potential financial distress.

SOLUTIONS AB LTD - Analysis Report

Company Number: 14460469

Analysis Date: 2025-07-29 16:36 UTC

Financial Health Assessment of SOLUTIONS AB LTD

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1. Financial Health Score: D

Explanation:
SOLUTIONS AB LTD shows minimal financial activity with net assets of only £10 consistently over the last three years, no fixed or current assets, and no liabilities reported. This indicates a very low scale of operations or possible dormancy in trading activities, but the company remains active. The financial "vital signs" are extremely weak, reflecting minimal capital and no trading history or cash flow generation, which poses significant risks to business sustainability.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Net Assets	£10	Barely above zero; negligible capital base, indicating no real business asset backing.
Fixed Assets	£0	No investment in long-term assets, possibly no operational infrastructure or equipment.
Current Assets	£0	No cash, receivables, or inventory; indicates no working capital available.
Current Liabilities	£0	No short-term debts but also no liabilities; could mean no business transactions.
Net Current Assets	£0	Neutral working capital position; no liquidity buffer or operational cash flow.
Shareholders Funds	£10	Entirely composed of share capital; no retained earnings or reserves, implying no profits made.
Employees	1	Minimal workforce, potentially the director only, suggesting a micro or start-up entity.

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3. Diagnosis: What the Financial Data Reveals

• Symptoms of Low Activity: The company shows "symptoms of financial dormancy" with no assets, liabilities, or trading results. This can be likened to a patient with very low vital signs—no active metabolic processes or growth.
• Lack of Operational Momentum: Absence of current or fixed assets means the company has not invested in operations or inventory and likely has no ongoing trading activity generating cash flow.
• Thin Capitalization: The company is essentially capitalized with share capital of just £10, which is the minimal legal requirement for a UK private limited company. There are no profits retained or resources built up.
• Limited Business Scale: The micro-entity classification and one employee reinforce the very small scale or early stage nature of this business.
• No Financial Distress Yet: No liabilities or overdue filings indicate the company is not currently under financial stress or facing insolvency symptoms, but the lack of activity is a concern for sustainability.
• Possible Administrative or Holding Entity: Given the SIC codes showing varied activities (real estate trusts, retail via internet, construction), the lack of financial movement may mean the company is a shell, holding entity, or in early setup phase.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Establish Operational Activity: To move from "financial dormancy" to a healthy state, the company should generate revenue streams and build working capital. This means initiating trading or operational activity aligned with its SIC codes.
• Increase Capital Base: Consider injecting additional funds beyond £10 share capital to fund asset acquisition or working capital; this will strengthen the balance sheet and provide liquidity.
• Regular Monitoring of Cash Flow: Implement basic cash flow tracking even if minimal, to ensure any income and expenses are managed prudently, avoiding liquidity crises.
• Prepare for Growth: If the company intends to expand, invest in fixed assets or inventory relevant to its business lines to develop operational capacity.
• Compliance Maintenance: Continue timely filing of accounts and confirmation statements to avoid penalties, preserving corporate good standing.
• Review Business Model: If the company is a holding or dormant entity, consider formal dormant status to simplify filings and reduce administrative burden.
• Seek Advisory Support: Engage financial or business advisory services to develop a strategic plan for growth or restructuring to improve financial health.

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Executive Summary

<Solutions AB LTD currently exhibits minimal financial activity with a net asset base of just £10 and no operational assets or liabilities, indicating a dormant or start-up phase with no trading cash flow. The company's micro-entity status and single employee suggest a very small scale with limited financial vitality. To improve financial wellness, the company should focus on initiating operations, increasing capital, and carefully managing cash flow to transition from financial dormancy to a sustainable business. </Solutions AB LTD>