SORTA PACKAGE LTD

Executive Summary

SORTA PACKAGE LTD exhibits a stable and improving financial position typical of a young micro-entity, with increasing net assets and positive working capital indicating healthy financial "vital signs." While the business operates on a very lean basis with no employees, it currently shows no symptoms of financial distress. Careful cash flow management and prudent growth strategies are recommended to ensure continued financial wellness and resilience.

SORTA PACKAGE LTD - Analysis Report

Company Number: 14155956

Analysis Date: 2025-07-29 20:59 UTC

Financial Health Assessment for SORTA PACKAGE LTD

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1. Financial Health Score: B

Explanation:
SORTA PACKAGE LTD demonstrates a modest but positive financial position for a micro-entity in its early years. The company shows steady growth in net assets and positive net current assets, indicating generally sound short-term liquidity and solvency. However, the scale of operations is very small, with no employees and limited asset base, so the company remains vulnerable to external shocks or cash flow disruptions. Hence, a grade of B reflects a stable but cautious outlook.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	3,420	1,911	Healthy increase in liquid or short-term assets, a positive sign of cash or receivables growth.
Current Liabilities	(962)	(173)	Slight increase in short-term obligations, but still minimal and manageable.
Net Current Assets	2,458	1,738	Positive working capital ("cash flow pulse") indicating the company can cover short-term debts.
Net Assets (Equity)	2,458	1,738	Growing shareholder equity suggests retained earnings or capital injections.
Average Number of Employees	0	-	No employees, indicating a very lean operation or potentially outsourcing activities.

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3. Symptoms Analysis and Diagnosis

• Liquidity and Working Capital:
  The positive net current assets indicate a "healthy cash flow" situation, with current assets comfortably exceeding current liabilities. This means the business can meet its short-term obligations without distress signals such as overdue debts.

• Capital Structure:
  The net assets grew by approximately £720 from 2023 to 2024, signalling either retained profits or equity injections. For a micro company, this is a positive "vital sign" showing incremental strengthening of the financial base.

• Scale and Operations:
  The company has no employees, suggesting minimal operational complexity or possibly reliance on contractor services. This keeps overheads low but may limit growth potential.

• Industry Activity:
  Under SIC codes 82990 and 82920, the company operates in business support and packaging activities. These sectors often require efficient asset and cash management, which appears consistent with the financial figures.

• Age and Development Stage:
  Incorporated in mid-2022, the company is in an early growth phase, with limited history but positive momentum.

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4. Prognosis

Given the current financial health indicators, the company is in a stable condition but remains fragile due to its small size and limited operational scale. Without employees, it likely depends on external partners or the director for operations. If the company can maintain or improve its net asset growth and manage liabilities prudently, it should sustain financial wellness in the near term.

However, the company should be cautious of any significant increases in liabilities or operational expenses that could disrupt its currently balanced working capital. Growth opportunities should be managed carefully with attention to maintaining liquidity.

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5. Recommendations

• Maintain Strong Cash Reserves:
  Continue to monitor and manage cash flow carefully to avoid "symptoms of distress" such as delayed payments or overdrafts.

• Consider Strategic Investment:
  Evaluate opportunities to invest in growth (e.g., hiring staff, expanding services) only if accompanied by sufficient capital or revenue forecasts.

• Improve Financial Reporting:
  As the company grows, consider moving beyond micro-entity accounts to enable more detailed financial analysis, aiding decision-making.

• Monitor Liabilities:
  Keep current liabilities low and manageable; avoid any significant short-term debts that could impair liquidity.

• Operational Review:
  Assess whether reliance on zero employees is sustainable, or if hiring or outsourcing changes are needed to support business development.

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