SQUIRES SERVICE SOLUTIONS LTD

Executive Summary

Squires Service Solutions Ltd exhibits a solid financial foundation with improving liquidity and net assets, indicating a healthy and growing micro-entity. Prudent management of working capital and continued focus on cash reserves will support sustained financial wellness as the company matures.

SQUIRES SERVICE SOLUTIONS LTD - Analysis Report

Company Number: 14261914

Analysis Date: 2025-07-29 21:14 UTC

Financial Health Assessment for SQUIRES SERVICE SOLUTIONS LTD

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1. Financial Health Score: B

Explanation:
Squires Service Solutions Ltd demonstrates generally sound financial health for a micro-entity in its early years of operation. The company shows improving net assets and positive working capital, which are signs of financial resilience. However, as a recently incorporated business with modest absolute values, it remains somewhat vulnerable to cash flow shocks or unexpected liabilities. The absence of audit and limited disclosure typical of micro companies means some caution is warranted when interpreting the data.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	11,669	7,140	Cash and receivables increased, indicating better liquidity.
Current Liabilities	6,985	5,782	Short-term debts increased moderately but remain manageable.
Net Current Assets	4,684	1,358	Positive working capital, showing short-term financial flexibility.
Net Assets (Equity)	3,796	614	Growing shareholder funds reflecting accumulated profits or capital injections.
Average Employees	2	2	Small workforce consistent with micro entity status.

• Liquidity ("Healthy cash flow"): The net current assets have more than tripled, indicating the company has a growing buffer to cover short-term obligations.
• Solvency ("Strong balance sheet"): Positive net assets signify that total assets exceed liabilities, a key marker of solvency.
• Growth ("Improving financial condition"): The increase in net assets and current assets over the year signals strengthening financial footing.

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3. Diagnosis: Financial Condition Overview

The company shows clear signs of progressive financial recovery and stabilization typical of a young engineering services business. The "symptoms" of distress—such as negative working capital or declining equity—are absent. Instead, the improving working capital and net assets suggest effective management of cash flow, receivables, and payables.

The business operates with a lean team and low fixed assets (consistent with the micro entity classification), relying on current assets to sustain operations. The fact that liabilities remain low relative to assets indicates controlled debt levels, reducing financial risk.

No audit requirement (micro-company exemption) means less external financial scrutiny, but the clarity and consistency of reported data inspire reasonable confidence.

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4. Recommendations: Path to Financial Wellness

1. Maintain Strong Working Capital Management
   Continue monitoring receivables and payables closely to preserve liquidity. Avoid overextending credit terms as this can cause "cash flow palpitations."

2. Build Cash Reserves
   Aim to increase cash holdings where possible, providing a buffer against unexpected expenses or seasonal downturns.

3. Plan for Growth and Investment
   With improving equity, consider strategic investment in tools or staff to scale operations cautiously without overstretching resources.

4. Regular Financial Reviews
   Even without audit requirements, internal periodic financial reviews can detect early warning signs ("symptoms") of distress.

5. Prepare for Regulatory Compliance
   Ensure timely filing of accounts and confirmation statements to avoid penalties that could strain finances.

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