SORIN TOMESCU SERVICES LTD

Executive Summary

SORIN TOMESCU SERVICES LTD currently exhibits minimal financial substance, with net assets and equity at nominal levels despite modest turnover. The company is compliant with regulatory filings but operates with a fragile financial base, requiring capital infusion and strategic growth to improve its financial health. Immediate focus on building equity and expanding revenue will improve the company's financial vitality and resilience.

SORIN TOMESCU SERVICES LTD - Analysis Report

Company Number: 14123282

Analysis Date: 2025-07-29 12:19 UTC

Financial Health Assessment Report for SORIN TOMESCU SERVICES LTD

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1. Financial Health Score: D

Explanation:
The company shows an extremely minimal financial footprint with net assets and shareholders’ funds recorded as £1 across three consecutive years. While the company is active and compliant with filing deadlines, the financial figures indicate a very fragile financial condition, bordering on "critical" in medical terms. This score reflects the company's inability to demonstrate meaningful financial substance or operational scale, which is a symptom of very limited business activity or capitalization.

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2. Key Vital Signs

Metric	Value	Interpretation
Turnover (2023)	£42,350	Modest revenue generation, indicating small scale operations.
Net Assets (2022-2024)	£1	Virtually no equity base; suggests minimal or no retained earnings and minimal capital.
Shareholders’ Funds	£1	Equity equals nominal share capital only; no accumulated profits.
Average Number of Employees	3	Small workforce consistent with micro entity status.
Account Category	Micro	Subject to minimal filing and audit requirements; limited financial disclosure.
Filing Compliance	Up to date	No overdue accounts or confirmation statements; good governance sign.

Interpretation:

• The company has very low net assets and equity, indicating it operates with minimal capital and likely limited financial buffer or reserves—akin to a patient with dangerously low blood pressure.
• The turnover shows some business activity but is modest, not sufficient to build a strong financial base.
• No audit requirement and micro-entity status limit available financial detail, somewhat akin to a basic health check rather than a full diagnostic.
• The company has maintained compliance with filing deadlines, which is a positive sign of administrative health.

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3. Diagnosis

The financial profile of SORIN TOMESCU SERVICES LTD reveals a business in a precarious or nascent financial state. The "symptoms"—minimal net assets, negligible equity, and modest revenue—suggest the company is either just starting operations or has not yet achieved financial robustness. The balance sheet’s static £1 net assets over three years imply minimal capital infusion and absence of profit retention.

The company’s "circulatory system"—its working capital and liquidity—cannot be fully assessed due to limited data, but the minimal net assets imply a potentially unhealthy cash flow position. Without sufficient capital or reserves, the company is vulnerable to financial shocks or unexpected expenses.

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4. Recommendations

To improve financial wellness and build a stronger foundation, the company should consider the following "treatment plan":

1. Capital Injection:
   Increase equity through shareholder investment to provide a financial buffer and enable operational scaling.

2. Revenue Growth Strategy:
   Focus on expanding sales and client base within the freight transport sector to increase turnover and generate profits.

3. Cost Management:
   Monitor and control operating expenses carefully to improve profitability and cash flow.

4. Financial Monitoring:
   Implement more detailed internal financial tracking beyond statutory filings to detect early signs of liquidity stress.

5. Seek Professional Advice:
   Engage with financial advisors or accountants to optimize tax planning, cash flow management, and financial structure.

6. Prepare for Growth:
   As the business grows, consider moving out of micro-entity status to provide more comprehensive financial statements, improving transparency for lenders or investors.

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